Autobytel Inc., an Internet automotive marketing services company, has announced financial results for the first quarter ended March 31, 2003.

"Fiscal year 2003 is shaping up very well so far," said Jeffrey Schwartz, president and CEO of Autobytel Inc. "We have now delivered a second consecutive quarter of net income, which reflects the success of our efforts to rebuild and enhance operations during 2002. Our operating metrics, such as closing ratio and gross margin per purchase request, have substantially improved and our customer and affiliate relationships are more solid than ever."

Autobytel reported net income for the first quarter ended March 31, 2003 of $0.9 million, or $0.03 per share. This compares to a net loss for the quarter ended March 31, 2002 of $(18.5) million, or $(0.59) per share. It is nearly double the net income reported for the fourth quarter ended December 31, 2002, when net income was $0.5 million, or $0.01 per share.

For the first quarter of 2003, EBITDA was $1.4 million, or $0.04 per share, versus a loss of $(17.9) million, or $(0.58) per share, in the first quarter of 2002, and EBITDA of $1.0 million, or $0.03 per share, in the fourth quarter ended December 31, 2002.

Revenues for the first quarter ended March 31, 2003 totaled $20.3 million, versus revenues of $20.7 million for the quarter ended March 31, 2002 and fourth quarter 2002 revenues of $20.0 million.

During the first quarter of 2003, Autobytel generated $1.3 million in cash, marking its third consecutive quarter of cash generation. The Company's cash balance as of March 31, 2003 was $28.8 million.

Jeffrey Schwartz added that "In addition to improved financial results, we are continuing to expand our leadership in automotive marketing services. Our expanded relationship with Yahoo!, and the launch of a co-branded channel targeting Hispanic car buyers, under an agreement with Terra.com, are an important part of our strategy of becoming an indispensable partner in the automotive interactive marketing arena."

"Our value proposition continues to be compelling," said Jeffrey Schwartz. "For the first quarter, a dealer's average cost to sell a car through Autobytel was approximately $130, compared to about $475 using traditional media based on NADA data."

Business Outlook

The Company continues to expect organic revenue growth of 5 percent to 10 percent in 2003 versus 2002, and positive net income and positive cash flow from operations for 2003.

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 first quarter 2003 earnings release, there will be a conference call broadcast live over the Internet, April 24, 2003, at 4:30 PM EDT (1:30 PM PDT). The link to the Webcast conference is as follows:

www.irconnect.com/abtl/conf/1q2003.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. an Internet automotive marketing services company, helps retailers sell cars and manufacturers build brands through marketing, advertising and CRM (customer relationship management) programs. The company owns and operates the automotive websites Autobytel.com, Autoweb.com, Carsmart.com and popular automotive research center, AutoSite.com, as well as AIC (Automotive Information Center), a provider of automotive marketing data and technology.