Autobytel Inc. Reports 3rd Quarter Earnings

basis, meeting analysts’ estimates.

reported quarterly revenue in the company’s history.

doubling from Q1 2003.

shares of common stock.

net proceeds of $25.6 million

"Growing net income at four times the rate of revenue

demonstrates the unique leverage and financial benefits of

our business model," noted Jeffrey Schwartz, president and

CEO of Autobytel. "With the acquisition of AVV, the raising

of additional capital, and our strong cash flow, we are well

positioned to make strategic advances and further solidify

our position as a leader in the automotive marketing

services category."

Autobytel reported net income for the second quarter ended

June 30, 2003 of $1.1 million, or $0.03 per share. This

compares to a net loss for the quarter ended June 30, 2002

of $(0.6) million, or $(0.02) per share, and represents a

29 percent increase over the net income reported for the first

quarter ended March 31, 2003, when net income was $0.9

million, or $0.03 per share.

For the second quarter of 2003, EBITDA was $1.7 million, or

$0.05 per share, versus $0.2 million, or $0.01 per share, in

the second quarter of 2002, and EBITDA of $1.4 million, or

$0.04 per share, in the first quarter ended March 31, 2003.

Revenues for the second quarter ended June 30, 2003 totaled

$21.7 million, versus revenues of $20.8 million for the

quarter ended June 30, 2002 and revenues of $20.3 million

for the first quarter ended March 31, 2003.

During the second quarter of 2003, net cash provided by

operations was $2.3 million, marking our fourth consecutive

quarter of cash generation. In addition, Autobytel received

net proceeds of $25.6 million in a private placement of

equity. Autobytel also used $4.8 million in cash to pay a

portion of the purchase price for the acquisition of AVV.

The Company’s cash balance as of June 30, 2003 was $51.7

million.

"I am very pleased with the progress we made this quarter,"

continued Schwartz. "In our lead referral category, the

results of our strategy of improving close rates, increasing

customer support, and better leveraging our marketing tools

are clear: dealers are up, pricing is up, gross margin is

up, and average fees are up. Our CRM category has been

bolstered by the AVV acquisition and the continuing strength

of RPM, and our website advertising category produced record

revenue, showing an 85 percent year-over-year growth."

The company reiterates its previous revenue guidance, and

expects to exit fiscal year 2003 at approximately a $95

million revenue run-rate. The Company forecasts that in the

second half of 2003 net income will increase over 50 percent.

Additionally, the Company expects that net cash provided by

operations will increase in the second half of the year.

Non-GAAP Measures

In addition to furnishing its consolidated financial

statements presented in accordance with generally accepted

accounting principles (GAAP), Autobytel discloses certain

non-GAAP financial measures, including EBITDA and EBITDA per

share, which are derived from results based on GAAP.

Autobytel believes these non-GAAP measures assist users in

understanding its results of operations, cash generated, and

resources available for strategic opportunities including

reinvestment in the business and acquisitions.

The non-GAAP measures are provided to enhance the user’s

overall understanding of Autobytel’s current financial

performance and its prospects for the future. As such,

these measures should be considered in addition to results

prepared in accordance with GAAP and should not be

considered a substitute for or superior to GAAP results. A

reconciliation of the non-GAAP measures to the nearest GAAP

measures is included in the attached Statement of

Supplemental Financial Information.

Conference Call

In conjunction with Autobytel Inc.'s second quarter 2003

earnings release, there will be a conference call broadcast

live over the Internet, July 24, 2003, at 5:30 PM EDT

(2:30 PM PDT). The link to the Webcast conference is as

follows:

www.irconnect.com/abtl/conf/2q2003.mhtml.

The Webcast will be archived within 2 hours of the end of

the call until the next quarter's earnings announcement. To

listen to the archived Webcast, please go to the link shown

above.

About Autobytel Inc.

Autobytel Inc. helps retailers sell cars and

manufacturers build brands through marketing, advertising

and CRM (customer relationship management) tools and

programs. The company owns and operates the automotive

websites Autobytel.com, Autoweb.com, Carsmart.com and

AutoSite.com, as well as AIC (Automotive Information

Center), a provider of automotive marketing data and

technology. Autobytel owns and operates AVV,

Inc., a provider of dealership CRM and sales

management tools and data extraction services.