AutoTrader.com Continues Strong Third Quarter Growth; Site Traffic and Revenue Rise Sharply Despite Soft Advertising Market

    ATLANTA--Oct. 23, 2001--AutoTrader.com, the Internet's largest automotive classifieds marketplace, today announced it again achieved new record levels of site traffic and revenue in the third quarter 2001. These increases reinforce that AutoTrader.com's online classifieds business model is continuing to gain strength in a difficult advertising and economic climate.
    AutoTrader.com averaged a record high 5.6 million unique monthly visitors during Q3 2001, an increase of more than 500,000 visitors since last quarter and more than 44% over the same period last year. In August alone, the company surpassed 6 million unique visitors for the first time, and was ranked by Nielsen NetRatings as the No. 1 automotive site on the Internet. Monthly page views and vehicle searches grew even faster than unique visitors and were up 55% and 74%, respectively. The site averaged 27 million searches per month in the third quarter. The most popular nameplate on AutoTrader.com this quarter was Chevrolet, with 3.2 million monthly searches. The top vehicles on the site were the Ford Mustang and Honda Civic, with 660,000 and 619,000 monthly searches, respectively.
    "Very few media companies are able to hold their revenues steady in the current environment," said Chip Perry, president and CEO of AutoTrader.com. "The fact that AutoTrader.com is growing so quickly when others are declining is a reflection of the unusually strong results and ROI we are providing our customers compared to their traditional advertising outlets. Dealers are adopting our services in increasing numbers in these tough economic times because they are aggressively looking for ways to increase the efficiency of their advertising budgets while growing their overall market share. And that's what AutoTrader.com helps them do."
    AutoTrader.com's consumer popularity is being fueled by the company's increased brand awareness -- which is driven by a multi-faceted national online and offline marketing campaign -- and the huge inventory and unparalleled vehicle selection available. More than 1.5 million vehicles are listed daily on AutoTrader.com, representing more than 50% of all used cars and trucks for sale in the U.S. At a local level, the site typically contains 5 to 10 times the number of listings presented in the local newspaper classified section. Furthermore, due to the high volume of daily updates of dealer inventories that AutoTrader.com is able to perform through its electronic connections with thousands of dealerships, more than 3.4 million individual vehicles are now passing through AutoTrader.com's database each month. The used vehicle industry in the U.S. records about 3.5 million actual sales per month.
    Reflecting the growing acceptance of its Internet classifieds business model, AutoTrader.com's customer base and revenues rose even faster than site traffic during the third quarter. The number of auto dealers advertising on its site increased 63% over a year ago, which helped fuel an 86% increase in total revenue to $15 million in the third quarter. Based on this rapid revenue growth and the strong ongoing demand for its advertising services, the company remains on track to achieve profitability in the second half of 2002.

    About AutoTrader.com

    AutoTrader.com is the Internet's largest auto classifieds marketplace and a comprehensive main source for consumers interested in buying or selling a new or used vehicle, or seeking information on price comparisons, safety tips, financing, insurance or warranty information. Through its strategic alliances with Manheim Auctions, Trader Publishing Company, ADP, Inc., America Online and eBay, AutoTrader.com aggregates in a single location a comprehensive database of 1.5 million vehicle listings from 40,000 dealers and 250,000 private owners, which provide consumers the largest selection of used vehicles in their local market.
    AutoTrader.com was created in 1997 and is a majority-owned subsidiary of Manheim Auctions, Inc., the world's largest operator of wholesale auto auctions since 1945. Manheim Auctions, a wholly owned subsidiary of media conglomerate Cox Enterprises, Inc., is AutoTrader.com's principal stockholder and a key investor along with Landmark Communications, ADP, Inc., eBay, Inc, and the venture capital firm Kleiner Perkins Caufield & Byers. For more information, visit http://www.autotrader.com or call 404/269-7359.