Autobytel Inc., an Internet automotive marketing services company, has announced third quarter 2002 financial results.

Highlights for the quarter include:

• Generates $3.1 Million in Cash, Finishes Quarter with $26.5 million
  

• Narrows Pro Forma Net Loss to $0.2 Million
  

• Pro Forma EBITDA at $0.6 Million, or $0.02 per Share, Fourth Consecutive Positive Quarter
  

• Launches Pilot Program with Major OEM, Adds Over 11,000 Enterprise Dealer Relationships
  

• Dealer Sales Closing Rates Up 35 percent since Beginning of Year
  

"We are pleased to report our first quarter of positive cash flow," said Jeffrey Schwartz, president and CEO of Autobytel Inc. "Generating $3.1 million in the third quarter of 2002 is a milestone achievement in the seven-year history of Autobytel. It’s a sure sign that improving operations are resulting in improved financial performance."

Autobytel’s cash balance as of September 30, 2002 was $26.5 million. During the third quarter, the company generated $3.1 million in cash.

On a Generally Accepted Accounting Principles (GAAP) basis, revenue for the third quarter ended September 30, 2002, totaled $19.3 million, an increase of 6 percent compared to revenue of $18.2 million for the quarter ended September 30, 2001. It decreased 7 percent from $20.8 million reported for the second quarter ended June 30, 2002. Revenue for the third quarter of 2001 excludes Autoweb results prior to the acquisition on August 14, 2001.

Pro forma earnings before interest, taxes, depreciation, amortization and non-recurring charges (pro forma EBITDA) for the third quarter of 2002 were $0.6 million, or $0.02 per share. This compares to pro forma EBITDA of $(1.9) million, or $(0.07) per share, for the third quarter ended September 30, 2001. Pro forma EBITDA was $0.4 million, or $0.01 per share, for the second quarter ended June 30, 2002.

On a GAAP basis, the Company reported a net loss for the third quarter ended September 30, 2002 of $2.1 million or $(0.07) per share. This compares to a net loss for the quarter ended September 30, 2001 of $3.2 million or $(0.13) per share, and a net loss for the second quarter ended June 30, 2002 of $0.6 million or $(0.02) per share.

Pro forma net loss before a non-recurring charge (pro forma net loss) was $0.2 million or $(0.01) per share. The non-recurring charge was $1.9 million for obsolete international software.

In conjunction with Autobytel Inc.'s third quarter 2002 earnings release, there will be a conference call broadcast live over the Internet today, October 24, 2002, at 4:30 PM EDT. Links to the web cast conference call follow: www.irconnect.com/abtl/pages/conference.mhtml.

The Webcast will be archived within 24 hours of the end of the call until the next quarter's earnings announcement.

About Autobytel Inc.

Autobytel Inc., an Internet automotive marketing services company, helps retailers sell cars and manufacturers build brands through marketing and CRM (customer relationship management) programs. Autobytel Inc. owns and operates the 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.