Autobytel Inc.,

an Internet automotive marketing services company, announced financial results for the second quarter

ended June 30, 2003.

Highlights for the quarter:

• Net income of $1.1 million, or $0.03 per share, on a GAAP

  basis, meeting analysts’ estimates.
  

  
  

• Revenues of $21.7 million, representing the highest

  reported quarterly revenue in the company’s history.
  

  
  

• Net cash provided by operations of $2.3 million, a

  doubling from Q1 2003.
  

  
  

• Acquisition of AVV for $4.8 million in cash and 711,109

  shares of common stock.
  

  
  

• Private placement of 5 million shares of common stock for.
  

  net proceeds of $25.6 million

  
  

• Cash balance of $51.7 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.