iDriveonline Receives $1 Million in Funding for Expansion

HOUSTON, Aug. 12, 2003 -- iDriveonline, Inc. ("iDrive"), announced today that it has secured capital funding in excess of $1 million from Main Street Mezzanine Fund, LP ("Main Street") of Houston, marking a big leap forward for the regional firm to grow nationally as a leading provider of end- to-end marketing and customer relationship management ("CRM") solutions for the U.S. retail automotive industry.

"This is an important development for us," said Fred van der Neut, president and chief executive officer of iDrive. "Within the first three years of operations, our company has achieved critical mass with a strong presence in Texas. Of the 88 automotive dealerships across the nation successfully utilizing our solution, 41 percent are located in Texas. This new growth capital will allow us to expand our national presence by significantly increasing our sales and marketing force as well as our back-end support operations.

"We truly appreciate this strong endorsement from a respected group of professionals like those at Main Street who have achieved an impressive track record for backing numerous successful Houston companies. This funding is a testimonial to the quality of our management team and strength of our company. They were clearly impressed with our product, its marketing opportunities, and our overall business plan," said van der Neut.

iDrive offers end-to-end marketing and CRM solutions for the automotive industry in a web-based environment. It provides automotive dealers and manufacturers the tools to manage direct marketing campaigns across all media in a single interface environment with a simple point and click.

"We are excited about investing in the automotive retailing sector; it is an industry in which certain of our principals and investors have considerable experience and expertise," said Vince Foster, a Senior Managing Director at Main Street. "We are very impressed with the company's services and management team and after we reviewed the company's business plan, we determined that the company represented a great investment opportunity. We found it compelling that iDrive was achieving positive operating results and its primary challenge was the need for working capital to expand on a national level."

iDrive ended 2002 with revenues of over $1.1 million and expects to achieve revenues of approximately $3.5 million in 2003. With 19 employees currently, the company expects to significantly increase its sales force, expand its relationships with dealerships nationally and as a result, experience significant revenue growth over the next few years. Within the first half of 2003, iDrive has experienced a 175% increase in customer base as compared to 2002.

Sanjay Desai, iDrive's chief financial officer, said, "I believe we are absolutely on target to accomplish all our goals. Our figures support that optimism. Our marketing message is simple, credible and direct: an absolutely reliable product that will perform exactly how the company says it will."

Through iDrive, automotive dealers can reach their customers in various ways. Customers with computers will be given their own secure automotive websites. Through these websites, they can get every kind of information about their vehicle including when the vehicle was purchased, what kind of service and repairs have been performed, and even such information as the vehicle's current book value.

Fred Haas Toyota World of Houston, one of iDrive's original clients, said its dealership has seen a 480% increase in online service scheduling by its customers in just one year since signing on with iDrive. Rod Hill, Service Manager with Husker Automotive Group in Lincoln, NE, said, "I've been a service director since 1976, and used all types of retention programs, and iDriveonline is the best I've used by far."

iDrive has identified a growing demand for its service. According to NADA (National Automobile Dealer's Association) Industry Analysis Division, automobile dealerships spent a total of $6.6 billion in 2001 for advertising and marketing campaigns of which 10.7% went for direct mail and internet advertising and marketing. The same report showed that direct mail expenditures increased 72% over the past 10 years compared to a 34% increase in newspaper advertising and a 10% increase in radio marketing.

Main Street is a Houston-based private investment firm formed to provide mezzanine capital to small and middle market companies. Main Street targets investments associated with ownership transitions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives for later stage businesses. Main Street is licensed as a Small Business Investment Company by the U.S. Small Business Administration, and as such, can access additional investment capital via this program. For more information on Main Street, visit www.mainstreethouston.com .

iDriveonline is a Houston-based provider of end-to-end marketing and customer relationship management ("CRM") solutions for the U.S. retail automotive industry in a web-based environment. Founded in 2000, iDriveonline provides automotive dealers and manufacturers the tools to manage direct marketing campaigns across all media in a single interface environment with a simple point and click. For more information on iDriveonline and to view a customer or dealer demo, visit http://dealer.idriveonline.com/ .