Autobytel in Danger of Being Delisted

March 15, 2005, IRVINE, Calif.; The AP reported that Autobytel Inc., an Internet automotive marketing services company, said Tuesday it will not meet a Nasdaq Stock Market deadline to file updated, audited financial statements and that its stock may be delisted as a result.

The company said it has applied to extend its March 16 deadline to April 15.

The company had announced last year that after an internal review of accounting matters, it would restate its earnings for the second, third and fourth quarters of 2003, full year 2003 and the first and second quarters of 2004.

After further review, the company said Tuesday it expects to also restate earnings for its 2002 fiscal year and the first quarter of 2003.

Autobytel said it believes the aggregate impact of the changes from Jan. 1, 2002 through June 30, 2004 is a reduction of net income of $1.8 million, of which $1.4 million was in the first six months of 2004.

Besides the loss, Autobytel said it expects additional adjustments in 2002, 2003 and 2004 based on a preliminary analysis of the way it accounted for revenue generated by purchase requests.

Shares of the Irvine-based company fell 12.3 percent, or 70 cents, in after-hours trading after news of the restatement was released. Autobytel shares fell 19 cents to close at $5.70 on the Nasdaq Tuesday during regular trading, $1 above their 52-week low.