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Autobytel.com Reports Q2 Losses Increase 63%, Up $3.8 Million

27 July 2000

CEO Tries Again To Put Positive Spin On What Many Believe Is A Dead Business Model

              
    IRVINE, Calif. - Autobytel.com today announced financial results for the 
second quarter ended June 30, 2000.

    Excluding goodwill and stock based compensation, net loss for the quarter
was $0.46 per share, an improvement of two cents over consensus estimates.
Including approximately $0.5 million representing goodwill and stock based
compensation, net loss for the quarter was $9.8 million, or $0.48 per share,
compared with a net loss of $6.0 million, or $0.33 per share, in the same
quarter a year ago, and a net loss of $8.1 million, or $0.42 per share, in the
quarter ended March 31, 2000.  Loss from operations for the six month period
ending June 30, 2000 was $20.9 million.

    Second quarter revenue grew to $17.1 million, an 86 percent increase over
revenue of $9.2 million in the second quarter of 1999, and a 13 percent
sequential increase over revenue of $15.1 million in the quarter ended March
31, 2000.  The percent of total revenue from international fees and licenses,
and from services such as financing, insurance and web site development was 19
percent for the quarter.
    
    The Company reported that at the close of the quarter, its cash and cash
equivalents were $100.3 million, including $36.7 million raised and reserved
for the operation of Autobytel Europe, compared with $106.6 million in cash as
of March 31, 2000.

    Mark Lorimer, President and CEO of Autobytel.com, attempted to put the 
latest results on a positive footing.  He was quoted as saying, "We are 
increasing sales, our bottom line is beating analyst estimates and our large 
amount of cash on hand and moderate burn rate not only keeps us on the path to 
profitability  but also gives us the flexibility to act opportunistically to 
increase our market-leading positions."  He appearently made no comment on the 
company's record high losses.
    
    The results for the quarter consolidate the financial results of
CarSmart.com for the full quarter.

    Autobytel's share price closed on Wednesday at 5 3/8, down from 16.93 just 
one year ago and from it's all-time high of 58 in early 1999.