Autobytel.com Cites Positive J.D. Power and Associates Study While Staggering Financial Loses Continue

IRVINE, CA - September 25, 2006: How does one know that Autobytel.com is probably about to release another dismal financial report (at least from past experience)? Simple, you just read another glowing pre-quarterly financial statement company press release.

Today's press release, issued just days before the 3rd quarter report is released by Autobytel, tells of a new study conducted by J.D. Power and Associates that reveals Autobytel.com's closing ratios (for the leads generated via Autobytel's suite of online services) to be better than any other "large" new-car lead service. The report also states that this is the second consecutive year that Autobytel.com has scored the highest closing ratio in this category.

Autobytel.com then spins the study results to declare that the findings are an example of "Autobytel Inc.'s ongoing commitment to customer quality and dealer...," in addition to stating that "Closing ratios, which are a measure of car sales per lead, are the bottom line for our dealers - and for our company - when it comes to measuring success..."

Of course, other schools-of-thought regarding the measurement of a public company's success are that a company should make a profit, at least more often than not. So far, for 2006, Autobytel.com has reported first-half year losses reaching over $15 million, approximately twice the reported loss for all of 2005.

Needless to say, we have no prior information about what ABTL's third quarter statement will be. Perhaps the company will report financial results that are commensurate with the positive nature of the J.D. Powers study; after all, Autobytel.com did report small profits for 2003 and 2004, after several years of huge annual losses.

You would just think that after spending hundreds of millions of (investor's) dollars to promote your service, and achieving all the accolades and study results that have been claimed by Autobytel since its inception, that the company would be a slam-dunk perennial winner. It'll be interesting to see what develops.

Marc J. Rauch, TACH Exec. VP & Co-Publisher