Autobytel.com Acquires CarSmart.com
16 February 2000
Autobytel.com Acquires CarSmart.com
Adds Customer Database of Almost 2 Million, Nearly 1,500 Dealerships, and Over
200 Credit Unions, Including American Airlines and USAA
IRVINE, Calif., Feb. 16 -- Autobytel.com today
announced the closing of its acquisition of A.I.N. Corporation, the owner of
CarSmart.com, one of the leading online buying sites for new and used
vehicles.
"CarSmart has been a tenacious and quality competitor. Today,
Autobytel.com adds CarSmart's people, brand reach, market share and marketing
relationships to its arsenal," said Mark Lorimer, President and CEO of
Autobytel.com. "With CarSmart, Autobytel.com now has a database of over
6.5 million customers, 4,800 dealers, established relationships with more than
200 credit unions with over 8.5 million members, and strategic marketing
agreements with 10 of the top Internet portals, including AOL, AltaVista and
Snap.com, representing a potential reach of a quarter billion."
Under terms of the agreement, Autobytel.com acquired the outstanding stock
of privately held A.I.N. Corporation for 1.8 million shares of Autobytel.com
common stock and $3 million in cash. CarSmart.com President and CEO Mike
Gorun will continue as president of the wholly owned subsidiary. In addition
to subscription fees from its network of nearly 1,500 dealers, CarSmart.com
receives revenues from its proprietary automotive content, its credit union
program, advertising, and services such as finance, insurance and vehicle
history reports.
"The value CarSmart delivers to its dealer network has consistently ranked
among the top in its industry and its innovative proprietary content will be
cross-purposed to enrich the experience of Autobytel.com users everywhere,"
continued Lorimer. "Gorun and his team have built a business that contributes
both to our domain expertise as well as to our market mastery, the two
touchstones of Internet business success."
According to Lorimer, the Autobytel.com and CarSmart.com websites will
continue to operate independently, although he foresees considerable
opportunities for sharing of content, technology infrastructure, marketing
programs and dealer support services.
"We were gratified that the flurry of dot-com wannabes created a great
deal of interest in the business we have built," said Mike Gorun, President of
CarSmart.com. "But the opportunity to team up with the industry leader
provided opportunities too great to pass up. We look forward to working
closely with Autobytel.com's management team to continue to offer the high
quality experience consumers expect from the Autobytel.com and CarSmart
brands, while at the same time continuing to drive innovations in the online
automotive industry."
Based in San Ramon, California, CarSmart.com boasts strategic marketing
agreements with AOL, Go Network, Snap.com, AltaVista, LookSmart, Go2Net and
CNET.
About autobytel.com inc.
Internationally-branded Autobytel.com (http://www.autobytel.com) is the
acknowledged leader in online automotive commerce(1). The most comprehensive
automotive Internet site, Autobytel.com offers consumers a positive purchasing
and ownership experience, while providing its Accredited Dealer Network with
the most efficient way to reach online car buyers. As it assists consumers
through every aspect of the automotive lifecycle, Autobytel.com provides
continuity into the next vehicle purchase. Launched in March 1995,
Autobytel.com's low-cost, no-haggle car-buying program is available in the
U.S., Canada (http://www.autobytel.ca), the United Kingdom (http://www.autobytel.co.uk),
Sweden (http://www.autobytel.se) and Japan (http://www.autobytel-japan.com). In 1999,
Autobytel.com was ranked #1 in Dealer Satisfaction with Online Buying Services
for the second year in a row(2).
About CarSmart.com
CarSmart.com (http://www.carsmart.com) is an established, top-rated
facilitator of automotive sales through the Internet. CarSmart.com aggregates
an extensive collection of rich automotive content to assist consumers in
researching, buying, selling, leasing, financing and insuring new and
pre-owned vehicles. CarSmart.com offers the consumer an Accredited Dealer
Network of nearly 1,500 nationwide. CarSmart.com can be accessed at
(http://www.carsmart.com). CarSmart.com is headquartered in San Ramon, California.
The statements contained in this press release that are not historical
facts are forward-looking statements under the federal securities laws. These
forward-looking statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to
predict. Actual outcomes and results may differ materially from what is
expressed in, or implied by, such forward-looking statements. Autobytel.com
undertakes no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise. Among the
important factors that could cause Autobytel.com's actual results to differ
materially from those expressed in, or implied by, the forward-looking
statements are changes in general economic conditions, increased or unexpected
competition, changes in A.I.N. Corporation's financial performance, and other
matters disclosed in Autobytel.com's filings with the Securities and Exchange
Commission.
(1) As reported by J.D. Power and Associates, Autobytel.com accounts for
45% of all new vehicles sold through an online service. (8.23.99).
(2) J.D. Power and Associates 1998-1999 Dealer Satisfaction With Online
Buying Services Studies(SM). 1999 study conducted among dealership Internet
specialists who completed 1,024 individual evaluations.