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Autoweb Reorganizes Operations, Furthering Company's Move to Profitability

17 November 2000

Autoweb Reorganizes Operations, Furthering Company's Move to Profitability

    Autoweb to Heighten Focus on Content, Technology, Fulfillment and CRM

    SANTA CLARA, Calif., Nov. 17 Autoweb.com, Inc. , the leading automotive Internet service,
announced today that it is concentrating its resources to further focus on
content and technology offerings, order fulfillment and customer relationship
management for the automotive industry.  In this move to focus resources and
exercise tighter fiscal control, Autoweb will reduce its workforce by
approximately 25 percent.  This move will enable the company to cut costs in
excess of $10 million annually resulting in increased value to the company's
shareholders, customers, partners, dealers and manufacturers.  This reduction
in operating expense coupled with Autoweb's strong cash position will further
the company's plans to move quickly to profitability.
    "Today's announcement will allow us to realize sustained cost savings,
while concentrating on a business strategy centered around CRM, our
industry-leading Automotive Information Center (AIC) content, data and
technology offerings, and increasing automotive shoppers' fulfillment options.
At the same time, we will continue to leverage our relationships with
automotive manufacturers like Ford, major dealer groups like AutoNation, our
extensive retail dealer network, and leading online portals like America
Online, which make our business focus and ongoing success possible," said
Jeffrey Schwartz, Autoweb's recently appointed chief executive officer.
Autoweb will provide employees who are affected by the reduction in force with
counseling and job placement assistance.
    "This decision was the result of careful deliberation by our executive
team and the board of directors.  We needed to take the necessary steps with
this reengineering initiative to deliver value to our shareholders and
business partners," Schwartz said.
    Schwartz also noted, "Almost sixty percent of all automotive shoppers
currently research their vehicle purchases online.  As a result of the Autoweb
Network's expansive reach to automotive shoppers across the Internet and our
ability to leverage our automotive content, technology and data, we will
continue to reinforce our position as the dominant, unbiased research,
information and fulfillment automotive site.  Autoweb's future is to become
the leading source for knowledge on consumer automotive buying behaviors,
preferences, and vehicle data for manufacturers, retailers and marketers."

    About Autoweb
    Autoweb.com is the leading automotive Internet service, guiding users
through every stage of vehicle ownership.  Through its direct and referral
commerce channels, Autoweb.com offers consumers a variety of ways to purchase
new and used vehicles in conjunction with vehicle manufacturers, local Member
Dealers and other commerce partners.  The Company's Web site also provides
consumers with a wide range of automotive-related products to support the
complete lifecycle of the vehicle, including finance, insurance and
maintenance.  Autoweb.com features comprehensive, unbiased research from its
Automotive Information Center (AIC) division.

    Autoweb also continues to set the standard in the business-to-business
marketplace by providing Web sites with the most advanced technology to view
automotive information, and the most accurate and reliable automotive data and
content.  Currently, major automobile manufacturers, including BMW,
DaimlerChrysler, Ford, General Motors, consumer portals also use Autoweb's
content and technology, including AOL, Lycos, MSN Carpoint and GO.  AutoSuite
is highly configurable for any individual AIC customer, as the interface can
match any look and feel, while vehicles (both target and competitor) and
specific features can be limited to any selection desired.  For more
information, please visit http://www.autoweb.com and http://www.autosite.com .

    Safe Harbor Statement:
    Certain statements in this news release, including statements that include
words such as "expects," "believes" or other future-oriented statements, are
forward-looking statements.  Forward-looking statements involve risks and
uncertainties that could cause actual results to differ from anticipated
results.  In particular, factors that could cause Autoweb not to reach
profitability in 2001 include, but are not limited to:  our ability to attract
consumers through existing and recently announced portal relationships; the
combined viability of current and new car buying process on our site; consumer
acceptance of online car buying and our ability to continue to reduce expenses
without comparable or greater revenue reductions.  Other risks and
uncertainties include changes in competitive behavior or market forces,
uncertainties regarding response from the vehicle manufacturers, changes in
the legal or regulatory environment, changes or lack of changes in consumer
preferences over time, technological challenges and an inability to
forecast future traffic and transactions.  Further information on risk factors
that could affect results is detailed in Autoweb's filings with the Securities
and Exchange Commission, including its Registration Statement on Form S-1 (No.
333-71177) and its Form 10-Q for the quarter ended September 30, 2000, filed
with the Securities and Exchanges Commission.