Dealers Embracing Internet Search Engines,

SEATTLE--Feb. 10, 2006--The Cobalt Group, the leading provider of marketing services to the retail automotive industry, today announced findings from a recent survey regarding Internet search engine marketing. The survey, sponsored by Cobalt and conducted by independent market research firm, Hebert Research, Inc., surveyed 300 dealers located throughout the U.S. to assess dealer attitudes, awareness, usage and investment trends with regard to Automotive Paid Search advertising(1).

Internet search engines have rapidly become a focal point in the consumer vehicle purchase process: more than two-thirds of all car shoppers use the Internet to buy autos, and more than 70% start their process at an Internet search engine, such as Google, Yahoo! or MSN(2).

"The Internet search engines are becoming a crucial way for dealers to connect with in-market car buyers," said John Holt, CEO of The Cobalt Group. "That's why we felt it was important to sponsor this market research. We're delighted to share these results with the auto industry, to help promote greater awareness of an exciting new Internet advertising medium."

Internet Paid Search advertising enables dealers, OEMs (and other automotive advertisers) to pay to appear on the pages of Internet search engine automotive query results, and thereby connect cost-effectively to prospective car buyers. Consequently, many auto dealers are eagerly embracing this new advertising tool, to generate both sales and service leads. Some key findings of the survey include:

    --  One third of dealerships surveyed said they are already paying
        to advertise on search engines.

    --  About half of dealers currently advertising on search engines
        intend to increase their Paid Search budget in the next 12
        months.

    --  Dealers are funding Paid Search programs by

            1. Increasing their overall advertising budget, or by

            2. Shifting dollars from other advertising programs. In
                this latter group, the most common response was a
                shift away from "print or paper advertising."

    Dealers' insights into Paid Search objectives, success factors and
metrics include:

    --  Dealers currently investing in Paid Search use it to target a
        50-mile radius local metro area (versus a larger, 100-mile+
        radius).

    --  Having a high-quality website is the most important factor in
        the success of a Paid Search program.

    --  The top reasons named for investing in a Paid Search program
        were:

    --  Getting more leads, and

    --  Promoting brand presence online, and as a defense against
        competitors.

    --  The majority of dealers ranked Paid Search success measures,
        as follows

            1. Increased sales leads

            2. Vehicle sales

            3. Increasing the number of website visitors.

    The survey also indicated that dealers want - and need - more
education and more help with Paid Search advertising:

    --  The majority of surveyed Dealers were willing to invest in a
        service provider to help manage their Paid Search program.
        Dealers indicated they would prefer to buy from either their
        website provider or their 3rd party lead provider.

    --  Only 21% of survey respondents were dealership executives that
        felt knowledgeable on the topic of search.

About The Cobalt Group, Inc.

The Cobalt Group is North America's leading provider of automotive marketing services. For more than a decade, Cobalt's exclusive mission has been to help automobile dealers and manufacturers increase their retailing effectiveness and profits. Cobalt provides marketing services to more than half the automotive dealerships in the United States, Canada and Mexico and is endorsed by more than two-thirds of the world's major automotive manufacturers. Cobalt is endorsed by the American International Automobile Dealers Association (AIADA).

For more information about The Cobalt Group, please call 800-909-8244.

Cobalt and The Cobalt Group are trademarks of The Cobalt Group, Inc. All other trademarks and trade names are the property of their respective owners.

(1)The Cobalt Group contracted Hebert Research, an independent market research firm, to conduct a statistically significant survey of U.S. auto dealers with annual sales of over $20 million. Dealers were randomly selected from a pool of 3,200 contacts, representing an even mix of brands and geography. In the survey, dealers were asked a variety of questions regarding their attitudes about Paid Search advertising.

(2)JD Power 2005 Autoshopper.com Study; Yahoo! Complete 2005 auto study.