Zag Selects Kelley Blue Book Supporting Groundbreaking Online Auto-Buying Platform

SANTA MONICA, Calif.--June 20, 2006--Zag (www.zag.com) today announced that it has selected Kelley Blue Book(R) (www.kbb.com), for new and used-vehicle information, to provide new car pricing and configuration data for Zag's new consumer online auto-buying platform.

Kelley Blue Book data will be incorporated into Zag's platform, which will be offered as a private-label turnkey solution for third-party automotive sites, auto dealers and affinity buying groups.

A key feature of the Zag platform provides consumers with transparency in pricing -- enabling buyers to see all of the vehicle's costs with no hidden fees. It also offers car-buyers a no-hassle, "haggle-free" buying situation using Kelley Blue Book's New Car Blue Book(R) value, which reveals what people actually are paying for a new car (its transaction price), as the no-haggle price rather than the vehicle's MSRP (manufacturer's suggested retail price) as a starting point for negotiation.

"Kelley Blue Book is one of the most trusted and recognized names in car buying, and we're delighted to integrate its New Car Blue Book value directly into the purchasing process," said Scott Painter, Zag founder and CEO. "Kelley Blue Book's data will help us provide buyers with transparent, upfront pricing -- which is exactly what consumers want."

In addition to licensing Kelley Blue Book's New Car Blue Book values, Zag also will license and offer its customers specification data and expert editorial reviews from the trusted resource. To date, the Zag platform has been deployed by Capital One Auto Finance, the nation's largest online auto lender, through its DriveOne program, and Autoland, the nation's oldest and most successful credit union auto-buying service, which Zag acquired in November 2005. Earlier this month, Zag acquired Automotive Invitational Services (AIS), an auto-buying program operator that serves more than six million members of 12 of the clubs of the American Automobile Association (AAA).

"Consumers want to know they are getting a good deal on a new car and with Zag's partner dealers using our New Car Blue Book value as a no-haggle price, it's practically ensured," said Leo Drew, executive vice president of customer sales and strategy, Kelley Blue Book. "Zag's incorporation of our data into its new technology and buying platform improves the car-buying process for players on all sides of the transaction."

Zag is transforming the auto-buying experience with a groundbreaking online platform that extends current online buying capabilities -- and soon will make it possible for consumers to complete the entire auto-buying transaction online. Zag's platform goes beyond research-related websites to give consumers upfront pricing and inventory availability for new and used cars, and the ability to configure a new vehicle and arrange financing online. Over the next year, the company will roll out additional capabilities that will enable a complete, end-to-end online transaction for the first time.

About Zag

Zag is an independent technology and services business, committed to dramatically improving the way consumers buy cars while simultaneously helping dealers enable sales. Zag is transforming the auto-buying experience with a groundbreaking online platform that extends current online buying capabilities -- and soon will make it possible for consumers to complete the entire auto-buying transaction online. Zag's platform goes beyond research-related websites to give consumers upfront pricing and inventory availability for new and used cars, and the ability to configure a new vehicle and arrange financing online. Over the next year, the company will roll out additional capabilities that will enable a complete, end-to-end online transaction for the first time. Zag works with affinity-based organizations to bring a private label, customized experience to members or customers while automating much of the time-consuming, inefficient processes at the dealership level. The company is based in Santa Monica, California with offices in Sherman Oaks, Calif., Fullerton, Calif., and Portland, Ore.