Autoweb.com, Inc., an automotive Internet service, has announced the appointment of Michael Schmidt to the post of CFO. The

company also reaffirmed that it expects to become EBIDTA positive in Q2 2001 and fully profitable in the second half of 2001 through cost-savings that are estimated to total more than $30 million and the monetization of untapped resources.

In making this announcement, management emphasized the following company dynamics:

1) $27.5 million cash position

2) $30 million in cost reductions

3) Strong management team and addition of new CFO

4) Planned rollout of information services

Schmidt, who has more than 15 years' experience in international finance and operations, will lead Autoweb's drive to profitability, according to the announcement. A cornerstone of this effort will include unveiling Autoweb's proprietary data about consumer preferences and buying behavior, as well as automotive manufacturer information.

Autoweb's Automotive Information Center (AIC), a provider of vehicle and manufacturer data and a B2B brand in the automotive industry, continues to be a driver of positive results in 2001, according to Autoweb.

Autoweb's effort toward driving profitability and cutting costs was instigated in late November when the company announced a reduction in work force, which is expected to save the company an estimated $10 million next

year.

"Schmidt will be invaluable as Autoweb continues to restructure many of its partnerships, including portal relationships that are instrumental to Autoweb's reach, and will explore new opportunities to reduce marketing costs, said Jeffrey Schwartz, CEO of Autoweb. "We expect these cost-cutting steps to result in savings in excess of $20 million for 2001, bringing the total savings to over $30 million for 2001," Schwartz said.

Schmidt was most recently chief operating officer and chief financial officer at MizBiz.com. Prior to this, he held various senior level roles in operations and finance at IMS Health, a $1.5 billion worldwide provider of information services.

"I was drawn to Autoweb by its talented management team, strong cash position and sound strategy for creating a successful and profitable business," Schmidt said. "The company's understanding of the key to success

in the online automotive industry is evident as it begins to announce its many exciting new developments, the first being the mining of valuable automotive data that until now has been untapped."

Autoweb's data will be used by automotive manufacturers to make more sound marketing and production decisions. This offering demonstrates Autoweb's commitment to CRM, according to Nadyne G. Edison, Ph.D., Autoweb's chief marketing officer and vice president of customer relationship management.

"As the automotive industry moves toward a build-to-order model, Autoweb will continue to examine ways to leverage the wealth of information it currently holds on consumer buying patterns and preferences," Edison said. "Autoweb is positioned to become a significant provider of unique knowledge about the automotive shopper. Regardless of whether a

purchase is made, automotive shoppers who use the Autoweb network provide us with valuable information about their automotive preferences and their status in the purchasing cycle. This information is a goldmine for the multiple

channels in the automotive supply chain, including manufacturers, retailers and automotive marketers looking to cut costs and proactively target consumers with the right product at the right time."

"First, manufacturers can now reduce surplus inventory and production costs by mining the consumer data to produce only the vehicle and component designs that are specifically in

demand," Edison said. "Second, retailers and marketers will be equipped with the information

for true one-to-one targeting and industry-leading customer relationship management services."

In discussing these planned initiatives, management also noted that the recent restructuring efforts with certain commercial partners, while expected to accelerate growth and profitability later in 2001, would pressure financial results for the fourth quarter of 2000. The company anticipates reporting a

fourth quarter loss per share in the range of $0.37 to $0.40 on revenues of approximately $10 million. "Our main strategic focus at the moment is to drive the organization to profitability through more cost-effective revenue streams and a streamlined organization, as demonstrated by our restructuring efforts with certain commercial partners and the recent reduction in force," Schmidt said. "Although these efforts are expected to be extremely beneficial for 2001, they will exert some temporary pressure on revenues as well as result in some one-time costs in the fourth quarter."

For the first quarter of 2001, the company expects to see the benefit of its efforts and anticipates its revenue growth percentage in the high single digits and EBIDTA loss to be less than $2.5 million turning slightly positive

in the second quarter of 2001. The company plans to provide further guidance on 2001 when fourth quarter earnings are released in January.

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 range of automotive-related products to support the complete lifecycle of the vehicle, including finance, insurance and

maintenance. Autoweb.com features unbiased research from its Automotive Information Center (AIC) division.

Autoweb also continues to be active in the business-to-business marketplace by providing Web sites with advanced technology to view automotive information, and accurate and reliable automotive data and

content, according to company officials.

Currently, major automobile manufacturers, including BMW, DaimlerChrysler, Ford, General Motors, Honda and Toyota, use Autoweb's

automotive data to power their sites. Major consumer portals including AOL, Lycos, MSN Carpoint and GO also use Autoweb's content and technology.

For more information, visit http://www.autoweb.com and http://www.autosite.com.