Automotive Retail Innovator to Transform Car-Buying With State-of-the-Art Technology Platform

SANTA MONICA, Calif.--June 27, 2006--Zag (www.zag.com), an automotive retail innovator, today announced that in its first full year of operation, it has already zoomed onto Entrepreneur Magazine's "Hot 100" list of the fastest-growing companies.

Entrepreneur's annual ranking of the fastest-growing companies is open to firms founded no earlier than 2001, with 2005 sales of at least $1 million, fewer than 1,000 employees and an actively involved founder. PricewaterhouseCoopers ranks qualifying companies based on sales growth from the date of inception.

Zag's technology and services platform makes it possible, for the first time, for the consumer to complete more of the auto-buying transaction online -- everything from selection, pricing, searching inventory and accessorizing to financing and insurance. Zag provides its platform as a private-label solution to auto dealers and affinity buying groups.

"It's an honor to be recognized as a fast-growing company because we really are all about speed," said Scott Painter, Zag founder and CEO. "Zag is harnessing the real time nature of the Internet to accelerate the sales cycle for dealers and auto-buying groups, while both simplifying and speeding up the car-buying process for consumers."

Zag was formed in 2005 by Painter, the founder and former CEO of CarsDirect.com. He was instrumental in bringing car shopping online and is credited with being the first to introduce up-front pricing on the Internet. Zag generated $2.8 million in 2005 revenue to earn the 68th spot on Entrepreneur's "Hot 100" list.

Last November, Zag purchased Autoland, the nation's oldest and most successful Credit Union auto-buying service. Autoland, which serves some 300 Credit Unions along the Pacific Coast, is now a wholly owned subsidiary of Zag and functions as an autonomous business unit. Earlier this month, Zag acquired Automotive Invitational Services (AIS), an auto-buying program operator that serves more than six million members of 12 clubs of the American Automobile Association (AAA).

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. Inaugural users include Capital One Auto Finance, the nation's largest online auto lender, which is rolling out Zag's platform for its DriveOne program; and Autoland, the nation's oldest and most successful credit union auto-buying service, which Zag acquired as a wholly owned subsidiary in November 2005. Zag is based in Santa Monica, Calif., with offices in Sherman Oaks, Calif., Fullerton, Calif., and Portland, Ore.