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USAutoNews.com Lands Funding to Bolster E-Presence

12 January 2000

USAutoNews.com Lands Funding to Bolster E-Presence

    NEWPORT BEACH, Calif., Jan. 12 -- USAutoNews.com, the leading
business-to-business portal for the automotive dealer and trade, announced the
successful completion of a $5 million Series C Convertible Preferred Stock
Financing.  USAutoNews.com plans to use the proceeds to finance the marketing
rollout of its communications and distribution network and to continue to
expand its Internet infrastructure.
    The funding largely came from a private investment group with a history of
supporting Internet companies such as Shopping.com, Realestate.com and
Babyfurniture.com.  "We are the only Internet company focused on enabling the
automotive dealer to become the 'automotive solution provider' to their
consumers," said USAutoNews.com Chairman and CEO Robert J. Zwerling.  "These
funds will enable us to further build our dealer and trade network and reach
an initial public offering."
    Under the management of Catalyst Capital, one of the nation's leading
venture management firm which is also headed by Zwerling, USAutoNews.com is a
portal providing industry professionals with a single, easy-to-use gateway to
more than 12,000 automotive web sites.  "While the automotive space is
crowding with competitors battling over the consumer, the investor interest
has shifted to business focused for portals like USAutoNews," said Dean S.
Jensen, executive vice president of corporate development.  "Our value
proposition is to provide the dealer with a one stop solution to tap the power
of the Internet to increase revenue, cut costs and increase customer service."

    About USAutoNews
    USAutoNews was founded in 1998.  It has since grown from one employee to
nearly 50 employees and consultants.  USAutoNews, through Catalyst Capital,
has raised more than $6 million in capital and debt facilities, including
financing from Cisco Systems Capital, First Corp Venture Leasing and Silicon
Valley Bank.