DealerTrack Adds Red Flags Reporting to Its Compliance Solution

LAKE SUCCESS, N.Y.--DealerTrack, Inc., a subsidiary of DealerTrack Holdings, Inc. , a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced that it has enhanced the DealerTrack Compliance Solution to help dealers better track their identity theft prevention programs and to more effectively monitor dealership activity. All subscribers of the DealerTrack Compliance Solution are receiving this reporting upgrade with no additional charge.

The Red Flags Rule stipulates that dealers not only need to verify the identity of each customer, but also be prepared to document their compliance with the Rule. For each covered transaction, documenting Red Flags raised and how they are addressed can help demonstrate a consistent application of Red Flags policy. In addition, dealers must regularly monitor their Red Flags activity so they can update identity theft prevention programs accordingly. Using DealerTrack’s Red Flags Reporting, dealers can do both, since the solution enables them to create a range of reports, including:

- An electronic Customer Investigation Report for users to document every Red Flag that is found, electronically or manually, on each deal

- A monthly summary of all Red Flags activity – average identity scores, reason codes, user statistics, and more

- A rolling 12-month summary to help dealers identify trends in activity and evaluate possible updates to their programs

The new capabilities allow a dealer to assess how each of their employees is verifying and validating customers’ identification on all deals. These extensive reports are an important tool to not only spot trends in which Red Flags are being triggered and how they are being resolved, but also to help determine whether training programs should be changed to make sure employees and the dealership remain in compliance.

“DealerTrack is the only provider in the industry offering such a comprehensive suite of compliance tools,” said Raj Sundaram, senior vice president, solution and services group at DealerTrack. “This new reporting functionality takes dealers beyond just identifying Red Flags – it gives them an audit trail to prove they’re in compliance.”

“DealerTrack’s Red Flags Reporting will help us manage our identity theft prevention program more systematically,” said David Dillon, President and General Manager, First Team Auto Mall, Roanoke, VA. “The new reports will not only make it easier to document our Red Flags activity, but also to analyze and update the program as needed.”

The Federal Trade Commission’s Red Flags Rule became effective November 1, 2008, and the FTC is scheduled to begin its enforcement activity on November 1, 2009.

About DealerTrack (www.dealertrack.com)

DealerTrack’s high-value software solutions enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, agents and aftermarket providers. DealerTrack operates the industry’s largest online credit application network, connecting approximately 18,000 dealers with over 750 financing sources. Our solution set for dealers is the industry’s most comprehensive. Our Dealer Management System (DMS) enables dealers to effectively manage data and operations from a system with an open integration interface. With DealerTrack Inventory Optimization, dealers get better data along with the tools to make smarter, more profitable inventory decisions. Our Sales and F&I solution enables dealers to streamline the entire sales process, quickly structuring all types of deals from a single integrated platform. DealerTrack’s Compliance solution helps dealers meet legal and regulatory requirements and protect their hard-earned assets. DealerTrack’s family of companies also includes data and consulting services providers, ALG (Automotive Lease Guide) and Chrome Systems. For more information, visit www.dealertrack.com.

Safe Harbor for Forward-Looking and Cautionary Statements

Statements in this press release regarding the benefits of DealerTrack’s Red Flags Reporting and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.

Factors that might cause such a difference include proper use of the reports by dealers, a dealer’s overall compliance program effectiveness and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2008. These filings can be found on DealerTrack's website at www.dealertrack.com and the SEC's website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

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