Automotive Aftermarket B2B Site Ceases Operations: eAuto Runs Out of Gas

    DALLAS, Jan. 19 eAuto, a leading Internet-based business-
to-business automotive aftermarket parts distributor, today announced it has
ceased operations.  eAuto was unable to secure a second round of funding due
to private and public capital market conditions.
    "The automotive aftermarket is in a lot of pain right now, as evidenced by
the valuations Wall Street is placing on the industry's largest companies,"
said eAuto founder and CEO Malcolm Davidow.  "Things will get worse before
they get better to the extent the aftermarket does not address the very real
challenges it faces in the areas of inventory management, reverse logistics,
supply chain integration and electronic cataloging.  The key to the success of
any technology-centric model today is getting the mechanic to migrate from the
telephone to the keyboard.  Given that the eAuto model responded to each of
those challenges, it is unfortunate the capital markets did not recognize
that."
    Davidow said that numerous investors, analysts and customers confirmed
eAuto's business model was sound and that eAuto made exceptional progress on
the execution of its strategy.
    "eAuto's B2B approach is unique in a number of respects from other models
... which facilitate existing distributors," reported Jim Lang of Lang
Marketing Resources in a Nov. 2000 report.
    "eAuto's virtual model streamlines aftermarket parts sales," said
Forrester Research's W. Daniel Garretson in a Dec. 2000 brief.
    Davidow said eAuto built one of the strongest aftermarket management teams
among the Internet-based companies.  In addition, the company had successfully
secured product directly from more than 20 manufacturers, including
Tier 1 OEMs, as well as first and second-line, aftermarket manufacturers.
    eAuto will sell numerous assets that were deployed to support its
e-commerce effort, including a robust diagnostics application that was to be
released in the near future, a patent-pending real-time volume pricing
program, electronic catalog database management systems and Web site content,
as well as the eAuto brand and domain name.

    About eAuto
    eAuto debuted in 1996 as a directory site, and quickly became the largest
automotive-specific directory on the Web.  Since its launch, eAuto served more
than 1 million visitors.  As a leading automotive portal, eAuto offered
services such as new car buying, financing, insurance, vehicle history
reporting, credit reporting, Web site reviews, car reviews, chat rooms and
headline news.  eAuto also sponsored the Lehman Racing Top Fuel Dragster
driven by IHRA Rookie of the Year and world-record-holder Clay Millican.  In
Nov. 2000, the company launched its business-to-business parts distribution
efforts.

    Contact:  Jeff Burns of eAuto, Incorporated, 214-224-6201, or
info@eauto.com.