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ContactAtOnce! Announces Chat Rollover Feature and Managed Auto Dealer Chat Service

ContactAtOnce! delivers intelligent routing of auto dealer chat leads to trained staff when dealership personnel are unavailable.

ATLANTA, GA – May 5, 2009 – ContactAtOnce!, (contactatonce.com) a leading provider of auto dealer
chat and other internet marketing tools that move online shoppers into live conversations with car dealers, today announced the immediate availability of its chat rollover feature and managed live chat service. The ContactAtOnce! auto dealer chat service gives dealers the industry’s most popular tools for answering their own chat leads and intelligent routing of chat leads to trained staff when dealership personnel are unavailable.

Adding auto dealer chat to a website has been shown to increase the number of site visitors with whom a dealership is able to set appointments; however, dealerships using chat have had to choose between answering their own chat leads, or outsourcing to a call center, both of which presented challenges. Dealership personnel are more informed and effective at engaging potential customers and setting appointments. On the other hand, outsourcing assured that someone was always available to answer in a timely fashion. The ContactAtOnce! auto dealer chat solution gives dealerships the best of both worlds by allowing dealership personnel to answer when available, and automatically rolling chat messages to a qualified answering service when dealership personnel are not able to respond immediately.

“Sales people in the dealership are very effective answering a shopper’s questions and setting appointments, so we strongly prefer that they handle our chat leads,” said Drew Fitchett, Owner of North Penn Imports VW Mazda in Colmar, PA. “That said, there are times during the business day and certainly after-hours, when our sales people are not able to answer, yet we still want our prospects to be able to connect with someone immediately. The ContactAtOnce! rollover feature intelligently forwards leads during those times, and ContactAtOnce! managed live chat personnel have demonstrated excellence in handling rollover leads exactly how our dealership wants them handled.”

The ContactAtOnce! auto dealer chat rollover feature works by automatically forwarding inbound chat
requests to an answering center if dealership personnel do not answer within a specified period of time.
The ContactAtOnce! rollover feature can forward chats to any answering center, a unique feature,
according to founder and executive vice president of products for ContactAtOnce!, Marc Hayes. “We
have many dealers with existing outsourced call center and business development center (BDC)
relationships. As a company, we welcome the opportunity to work with those providers and have designed the rollover feature to support multiple partners.”

“The fear of ‘not having someone to answer all the time’ has kept some dealers from adding live chat to their website,” said Hayes. “To them, I say ‘fear no more’. Now every dealership can set more appointments by giving shoppers what they want – the ability to chat.”

Both the auto dealer chat rollover feature and the managed live chat service are available immediately
from ContactAtOnce!.

About the Auto Dealer Chat Provider ContactAtOnce!:
Contact At Once!, LLC is a leading provider of auto dealer chat and internet marketing tools for
automotive sales, apartment leasing, and other industries where consumers conduct research online
before visiting a dealership or office. The ContactAtOnce! service typically moves at least 25% more
website visitors into live conversations with sales people by utilizing a suite of technologies such as
presence, IM/chat, VoIP telephony, video chat and text messaging, resulting in increased revenue and a better return on marketing expenditures. ContactAtOnce! is the only solution with features specifically for vertical search websites and over 35 such sites, along with thousands of merchant businesses, are using it today.

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A Commentary from the NYC Google Automotive Summit

I do agree that a large portion of the problem was constantly pulling people back into the buying cycle too soon. Sooner or later that bubble has to pop.

On the advertising front, making that change to digital advertising is tough. For most of us that have been in the car business for a long time we tend to rely on what has worked in the past. Now when we go to those old wells we find a lot of them are dry. I love that you can track digital marketing alot better than offline but its still very tough to implement effectively.

A Commentary from the NYC Google Automotive Summit

Very interesting Chris - makes tons of sense! I may have not been reading the article close enough, but there is another reason why GM (Government Motors) got into this predicament....and I'm pointing this out so other OEM's don't continue doing this practice either:

When sales slump, a quick way for an automotive manufacturer to gain some easy sales is to add another dealership to a market. It creates volume competition, new advertisements, and more buzz. It is a win-win for the OEM, but a lose-lose for dealers. This is why there are so many GM dealerships.

And to follow-up on that mess, check out Dale Pollak's article on how GM will diminish their dealer-base:

A Commentary from the NYC Google Automotive Summit

Interesting piece. I especially like the comment: "The dealers that do weather the current storm and adopt modern sales and marketing practices will do very well over a 5 year horizon." as this is a direct reflection of what so many of us are trying to do within our own dealerships. We are working to change the historical selling culture and steer our dealerships in the correct direction of transparent selling.

A Commentary from the NYC Google Automotive Summit

Guest Posting by Chris Reed

NYC Google Automotive Summit 2009

Google has been holding a series of briefings for OEMs and agencies across the country. The NY program has some great speakers from inside and outside the industry. As you might expect, a primary topic was “when will this pain end?”.

John Casesa, the auto analyst and an advisor to the Auto Task Force, had some great historic analysis identifying that a lot of the intensity of the current slump is the result of several years of “unnaturally” high demand that was propped up by easy money and incentives. In terms of what got the domestics into their current fix, Casesa took the long view and said the root cause dates from the 1930’s when the National Labor Relations Act and State Franchise Laws were passed in reaction to predatory OEM practices. Unfortunately, these laws shifted the power dynamic in the opposite direction and created a structural rigidity that, over time, lead to bloated labor costs, inflexible rules and excess capacity in the franchise network as market shares declined. This, in turn, led to less product innovation and excess debt as import competition squeezed margins and volume.

His views, most likely shared with the task force, is that radical surgery is required to “fix” both of these issues. His take was that a GM bankruptcy was now “probable”. On the dealer networks he forecast the end state may be closer to 10,000 rooftops than 15,000 if the dealers are going to have sufficient financial strength to return to profitability. He even speculated that more radical distribution changes – sales only mass retailers, internet sales - could be enabled by the growth in volume of simpler electronic cars. The good news is that he is forecasting a relatively quick rebound to the 11-12M unit range in 2010 and a slower growth ramp (3-5 year) to a “natural” demand level of about 16M units. The dealers that do weather the current storm and adopt modern sales and marketing practices will do very well over a 5 year horizon.

Google’s chief economist, Hal Varian, mostly focused on macroeconomic trends and supported the general consensus that if we are not already bumping along the bottom of the recession we can see it from here. The vast majority of government stimulus funds have yet to hit and that should help counter balance on-going bad news on the employment front. Google is doing some promising research on “predicting the present” – correlating search volume for auto terms with near future sales volume.

Google and Compete reported preliminary results from new research on online buyer behavior using clickstream data linked to auto registration records. The top level take-away was confirmation that the internet shopper does not follow a linear path from 3rd party site to OEM site to dealer site but visits all these types of properties, in different proportions, at all stages of the purchase funnel. This puts the burden on the dealer to engage shopper as all of these stages to insure they ultimately return to your store.

The program was capped off with a commentary by David Bell, former Chairman and CEO of Interpublic (one of the world’s largest advertising agency groups) and now Google advisor giving an amusing perspective on why traditional agencies have been so slow to embrace digital marketing. It appears they need reinvention as much as the OEMs do. More nimble digital marketing specialists are still leading the way and are having increasing presence at the figurative table where marketing campaigns are planned by OEMs and their primary advertising agency. We will see better integration of Digital into OEM execution and better message coordination with regional and dealer sites to turn the marketing funnel into a “pipe” to the dealership – a consistent consumer experience with minimum leakage.

Bonita Stewart and the Google Automotive team put on a quality, thought-provoking program. It is clear we are still at the start of the digital marketing revolution in automotive, there is much innovation to come and profits to be made by surfing the wave.
About the Author: Chris Reed is the Chief Marketing Officer for the Automotive Marketing Services for Cobalt

6th Digital Dealer Conference Review by Kevin Frye

Many thanks to everyone's kind remarks. Ralph - I did run into you on Sunday, but you were in a hurry to get to your next session, so we were unable to talk. I was also in your session on creating community pages, and in fact was texting Chip Grueter that you should get a birddog fee for your endorsement of DealerRater during your presentation, lol. You were so busy after the session that I did not get a chance to talk, I apologize. For everyone - I certainly acknowledge that I could not cover all of the sessions (including even writing up about all that I attended), but I had to keep my review fairly brief, and I tried to hit some hot buttons. I would share that the day I returned from the conference, I opened up my MS Outlook and started creating "tasks" for all of the useful things I wanted to implement from the notes I took while attending Digital Dealer. I have been non-stop busy since! I would recommend the same to all, as I often found myself with a pile of notes, but little benefit after conferences like this, and I want to make sure that I use the great info I learned. Ralph - one good example is here at this video (where we now added annotations, channel linkback, and adjusted our description linking per what we learned at the conference, make sure to view beyond the first 15 seconds) Login to view embedded media View: http://www.youtube.com/watch?v=hUWzTvIS6cA
Cheers to all!

6th Digital Dealer Conference Review by Kevin Frye

Kevin,

I enjoyed reading your review of Digital Dealer, but have two complaints...

First, I am one of you and your Jeff Wyler Family Team's biggest fans, and yet somehow i do not recall seeing or speaking with you in Las Vegas... That just plain bugs me, because I would have really enjoyed speaking with you in person.

Second, there was so much great material that was presented in concurrent workshop sessions, and so many interesting gatherings of people (especially my Sunday night shindig that I figured would result in less than 25 people attending, and over 100 showed up!), that your article referenced a relatively small portion of what so many others experienced, enjoyed and made the time and cost of the conference an unquestionably wise investment.

But, heck... What you did cover, you covered well! And, besides, I still use you and your team as evidence that my friend Jim Ziegler did not INVENT the concept of car dealers using self-made videos and the web to thrill and delight car shoppers, and create the differentiation needed to make people WANT to do business with the Jeff Wyler Family of Dealerships more than any others in your market.

Rock on, Mr. Frye... I remain one of your many ardent admirers and raving fans!

And, one last thing... Without offending "The Kershner", there are plenty more VERY entertaining photos and videos posted to the ADM site. Some of the videos are clips from actual DD 6 Worshops, but all good stuff, here's 2 samples:


6th Digital Dealer Conference Review by Kevin Frye

Kevin,

Great reviews! Thanks for taking the time to spend with me, Karen and Karry. We all enjoyed getting to know you better.

*I am glad to hear that you got some good nuggets out of my workshop and our meet. If you have any questions what so ever or if there is something I can do to assist you feel free to call me 215-338-3600 or email me at [email protected]

SVB-

6th Digital Dealer Conference Review by Kevin Frye

I am not sure if it was because of the simultaneously scheduled “King of Cars” TV marathon on A&E or that the all male review “The Thunder Down Under” was completely sold out this past week, but Jeff and Alex were unable to attend the Spring Digital Dealer Conference being held in Las Vegas, and I kindly stepped up to provide this friendly review for each of you…

Located at the Mirage Hotel in Las Vegas, this year’s spring conference promised some great entertainment combined with a strong agenda of current issues within our fast-moving market.  I teamed up with Alex Jefferson of Proctor Honda and Acura to attend multiple sessions, as well as to meet with several vendors to share some useful information with our DealerRefresh readers (please note the well-coached GQ pose that Alex prompted me to take...).

3468964552_283741b942.jpg
Kevin Frye and Alex Jefferson

“Please God, what does it take to sell a car?” That is certainly a strong opening statement, and this session led by Gil Chavez, Joe Webb, and Kim Clouse reviewed some strong fundamentals to what it takes to utilize the Internet successfully to sell cars. This was a great session for the first day as it reminded everyone of the skills that build a strong foundation for your Internet strategy. With such a challenging market, and with so many things to do, Gil, Joe and Kim emphasized that today’s Internet manager must be “God-like” – which begs the question “What type of pay plan does a God-like Internet manager deserve…”

3468151439_973abf8a79.jpg
Joe Webb and Gil Chavez

Video is still a hot topic, and has been building interest at these conferences since it first hit our market.  Sean Bradley gave a great seminar that shared the benefits of video for your dealership, as well as several useful tips.  Some things that caught my attention included NOT using TubeMogul to distribute your videos – but rather taking the time to distribute unique content, and to mix up your titles and descriptions rather than just creating duplicate content.  There was also some discussion regarding using recycled content that everyone else is using (OEM videos) vs. creating unique content.  I learned about some technology developments in this arena from Sean that I think could provide some very interesting changes within our Video SEO strategies, to include pixel, voice, and face recognition technology within the search engines.  Google is concerned about content, and does your video content have audio that is saying the keywords you are targeting?  And in a side- note, if you are making video testimonials of your customers – are you getting a signed release to publish them online???

3468964346_6ab9d4a877.jpg
Alex Jefferson, Sean Bradley, Karen Uriarte, Karry Moore

How about “Getting Social” online? Jesse Biter of Homenet led an excellent session on how to utilize social networking tools as part of your Internet solution. Jesse had a full-house of attendees, and this was definitely a hot topic for this conference.  I think Jesse summed this up quite well with telling us that social networking is just “word-of-mouth” online.  What is your dealership’s best closing source?  Referrals!  Social networking provides the tool to utilize “word-of-mouth” online to create referrals to your dealership.  I found 2 very useful recommendations from Jesse to include TweetBeep (which is very similar to Google Alerts, but allows you to keep track of any conversations about you and your dealership online), as well as to include your Facebook info in your signature fields for your emails as a great way to personalize yourself to your customer.

3468964388_28cc267e57.jpg
Jesse Biter

Do you know what your customers are saying about you? Are you managing your online reputation, or just burying your head in the sand and hoping that everything goes ok?  Matt Lamoureux of DealerRatergave an outstanding presentation that addressed all areas of online reputation management.  He also shared how to share positive reviews online with your Facebook friends, which is a great way to build up more of those online referrals.  I think more than half of the sessions I attended brought up DealerRater as a “must” if you are serious about your Internet strategy, and I am strongly encouraged to see Chip Grueter and his team being incredibly aggressive in keeping their product on the cutting edge.

3468964412_6fec31163b.jpg
Matt Lamoureux

I know that it is hard to rate a “best” seminar with so many great speakers and presentations, but I have to say that Brian Pasch hit a home-run with his “SEO Survival Toolkit”. Let’s face it – the battleground of our market is on the search engines, and Brian showed us several useful tips on how to better search engine optimize our sites.  What really aggravates me is that what Brian is showing us (e.g. having duplicate titles and duplicate meta descriptions on our website pages is not good) should be common sense for SEO, yet why do our automotive website vendors still make these common mistakes? When we are paying thousands of dollars a month to our website vendors, why do we have to pay additional money to make their sites perform optimally in the search engine results?  Brian also shared great tips on using blogs, press releases, Google Map listings, and much more to better optimize your sites.

3468964436_95858133fc.jpg
Brian Pasch

The exhibitor hall was huge, and unfortunately, not very full.  Our slow market was reflected in less vendors being present, as well as in where the vendors were. Several vendors are taking an alternative approach to these conferences, and are choosing to work the floor and the sessions aggressively with networking rather than have an exhibit. Depending on what service or product they provide, this can be a very effective approach. I tried to visit most of the exhibitors and learn what was hot, and what was new. vAuto has been upgrading their tool, and now has a new module where you can view a graph of where the inflection point is for your inventory pricing – or more simply – at what point of pricing does your online views suddenly jump!  eBay Motors is taking a more aggressive approach now in better training dealers on how to use their tool effectively.  More dealers are now looking to Live Chat to improve their website conversion rates, and ActivEngage was seeing a lot of traffic.  While speaking with Homenet, I learned about several new features that I was unaware of, but that have been available to me at no additional cost for some time.  This was a great wake-up call for me (and I hope for others) that all of us need to go back to our current vendors on a regular basis to train on their tools and ensure that we are using them 100% to our advantage.  It is also encouraging to me to see vendors that are constantly improving and upgrading their tools on their own initiative to help us in our business – that is the kind of partnership that my group looks for and is most beneficial for us. And before you ask, the “give-aways” were quite minimal this year, so Alex and I chose not to give a best give-away prize this year.  I am not mad at any of the vendors for this, in fact, this is a good sign, as when times are bad, ALL of us need to cut back on unnecessary expenses.

Very interesting concept – what happens when several different vendors are trying to sell their service, but find other areas that their prospects are struggling with, and are making it difficult for the vendor to close their deals?  Three proactive vendors decided to address this and banded together to provide a combined solution to best meet their customers’ needs.  Dealer 212 is a consortium of 3 vendors, Su-Lin Jasicki with CarSoup, Tanesha Bennett with ADTraffic, and Katie Jackson-Richter with Cuneo Advertising.  What impressed me about this approach was that they were willing to think “outside of the box” and put their heads together to find a solution that worked best for the dealer, rather than compete with each other for the best solution for themselves.  I am looking forward to seeing how this works out at the next session…

What was the “word on the streets?”  Was it text messaging?  Twitter?  Facebook?  Community Pages?  Video inventory?  Online pricing tools?  Best SEO tactics?  The “word” was OVERWHELMING. Listening to people in the sessions or at the exhibit hall showed me that attendees are struggling with how to manage everything that this job entails.  How do you manage 17 different social networking sites, 8 blogs, 4 community pages, Live Chat, inventory, video SEO, Tweeting all day, and 1001 other items every week when you are already pressed for time?  And on top of that, we are still fighting internal politics on getting the culture at our dealerships to change with this market. My advice is to choose your battles. You cannot do everything yourself. Prioritize what you need to do, and then do that as well as you can. Then choose to LEAD your people to take ownership of the Internet as well, and to help you with other areas that you cannot manage directly.

3468964464_313fd443f9.jpg
Patrick Workman, Kevin Frye

Another great benefit of attending these conferences is seeing opportunities for new businesses to serve our fellow dealers. With that in mind, Alex Jefferson and I are starting a new company called “BS Statistics.  Our company will provide any statistics you need to sell your product or service, and we can show you how our service will help increase your sales by 43.7%.  Further, with our help, ANYONE can become the “expert” in their field, using our BS statistics to provide the credibility you need in pushing the product or service you are selling.  Don’t believe us?  87% of the speakers at Digital Dealer are recognized experts in their field, thanks to our BS statistics…I hope this is taken in good form, as after attending countless sessions and product demos, we were beginning to question where so many often quoted “stats” come from…

Ah – the “after-hours” section of the review.  Hey, what happens in Vegas stays in Vegas, right? All kidding aside, the entertainment available in Vegas is unmatched.  Many thanks to Ruanne Varden and Stuart Lloyd at Clickmotive for a great dinner and a ticket to the Cirque de Soleil Beatles Love show (absolutely incredible, has my highest recommendation, and anyone going to Vegas without seeing a show is missing the best part).  Chip Grueter and the DealerRater team hosted a fantastic dinner and drinks session at Stacks (fantastic restaurant at The Mirage) that was well attended and lots of fun.  Whew – and then Jesse Biter and the HomeNet team kept me out the entire night at the exclusive nightclub Jet. No, I didn’t see Brittney Spears there (it is one of her places to go) but I did see Mike Roscoe, Patrick Workman, Phil Penton, and many others living it up. Thanks Jesse for your hospitality!

3468964504_b6fe2a3425.jpg
Su-Lin Velin Jasicki, Kevin Frye, Tanesha Bennett, Alex Jefferson, Katie Jackson-Richter

With all that said, here is my concluding sermon. There is no “school” for what we do. And if some university started a degree for “Automotive Internet Professional”, the day you graduated with your degree, the information would likely already be outdated. These Digital Dealer conferences are invaluable – and they are the only “school” available to us that are up to date and are moving as fast as the market (hence 2 sessions per year). Even with the Las Vegas nightlife and some very late nights for all, the sessions were still highly attended. The people attending these conferences are serious and are not only attending the sessions, but are working the exhibit hall to network with others that can teach them more. My overall summary is that this was another outstanding conference, I came away with a lot of great ideas that can make our group better, and I would highly encourage everyone to attend the next one. Cheers to all (and I apologize if I could not mention all of the great folks I met with)!  And if you missed it, here is a short video clip of the Mirage volcano eruption.
About the Arthor: Kevin Frye is the eCommerce Director
for the Jeff Wyler Automotive

TRILOGY ENTERPRISES ANNOUNCES CASH TENDER OFFER FOR AUTOBYTEL

TRILOGY ENTERPRISES ANNOUNCES CASH TENDER OFFER FOR AUTOBYTEL AT $0.35 NET PER SHARE

AUSTIN, Texas, April 20, 2009 — Trilogy Enterprises, Inc. (“Trilogy”), a provider of technology powered business services to the automotive industry, today announced that its wholly-owned subsidiary, Infield Acquisition, Inc., has commenced a tender offer to acquire all of the outstanding shares of common stock of Autobytel Inc. (Nasdaq: ABTL) for $0.35 net per share in cash.

The offer represents a 32% premium over the trailing 30-day average closing price of Autobytel’s common stock.

“We are pleased to offer a significant premium to Autobytel’s shareholders, “ stated Sean Fallon, Senior Vice President of Trilogy. “The automotive industry is experiencing an unprecedented decline and we believe that Autobytel must take steps now to ensure its shareholders receive the highest value. Given the significant risks of this business and the Company’s history of operating losses, we believe the premium offered is very attractive.”

“As Autobytel’s second largest stockholder and the beneficial owner of approximately 7.4% of Autobytel’s outstanding common stock, we have studied this business carefully.  We have concluded that Autobytel’s ability to  execute a turnaround and realize significant value for its stockholders is subject to significant and unacceptable risk.  We believe that a high-premium, all-cash tender offer is the most effective way to maximize value for all stockholders.  As a result, we have determined it is necessary to take the offer directly to our fellow stockholders in order to deliver significant value to them as expeditiously as possible,” added Mr. Fallon.

“We are confident our fellow stockholders will find that this compelling offer reflects a superior value for their shares, both in light of Autobytel’s current and recent trading history, as well as any realistic near or long term assessment of Autobytel’s prospects.  We are committed to completing this offer and remain willing to work cooperatively with Autobytel,” concluded Mr. Fallon.

The tender offer is scheduled to expire at 12:01 A.M., New York City time, on Tuesday, May 19, 2009, unless extended.  The tender offer documents, including the Offer to Purchase and related Letter of Transmittal, will be filed today with the Securities and Exchange Commission (“SEC”).  Autobytel’s stockholders may obtain copies of the tender offer documents when they become available at www.sec.gov.  Free copies of such documents can also be obtained when they become available by calling Morrow & Co., LLC, toll-free at (800) 662-5200.

The tender offer was detailed in a letter dated April 20, 2009 from Trilogy to Autobytel’s President and Chief Executive Officer, Jeffrey H. Coats, and Autobytel’s Board of Directors.  The full text of the letter is set forth below.

_____________________

April 20, 2009
Autobytel Inc.
18872 MacArthur Boulevard, Suite 200
Irvine, California 92612-1400

Attention: Mr. Jeffrey H. Coats, President and Chief Executive Officer

Ladies and Gentlemen:

Trilogy Enterprises, Inc. (“Trilogy”), through its affiliates, owns approximately 7.4% of Autobytel Inc.’s (“Autobytel” or the “Company”) stock and is Autobytel’s second largest stockholder. We have successfully created and delivered innovative solutions to the automotive industry for more than a decade.

We believe Autobytel is facing a crucial period in its corporate existence. The automotive market is undergoing a crisis so severe that it is difficult to adequately describe.  Strong companies may find a way forward.  Weak companies will undoubtedly fail.

Unfortunately, Autobytel has historically struggled to create an independently viable business. For example:

  • In 2006, Autobytel incurred operating losses of $40MM on $85MM in revenue;
  • In 2007, Autobytel incurred operating losses of $35MM (not including litigation settlement costs) on $84MM in revenue; and
  • In 2008, Autobytel incurred operating losses of $36MM (before impairment charges and litigation settlement costs) on $71MM in revenue, which declined by 15% from the prior year.

Autobytel has itself acknowledged that the market is “extremely challenging” and it expects the U.S. automotive industry to decline more than 20% in 2009. Given the market outlook, what should stockholders reasonably expect from a company that has not proven itself viable historically?

We recognize that Autobytel has taken steps to address this crisis.  However, we do not believe the steps taken are adequate to address the severity of the situation.  Autobytel facing another corporate reorganization during potentially the worst market in history seems highly unlikely to prevail. The current plan appears akin to “let’s give this one last shot”. Unfortunately, shareholder cash and value is at stake.

Given Autobytel’s business prospects and the significant historical and recent operating losses, the Board should take steps now to preserve as much shareholder value as possible. We believe the only means to accomplish this is the immediate sale of the business.

We are aware that Autobytel had engaged a financial advisor to evaluate the possible sale of the Company.  Autobytel announced that its advisor conducted an extensive process which resulted in Autobytel concluding that shareholder value could not be maximized in the current environment. We assume this means no buyer desired to pay a price required by the Board.

Today, our wholly-owned subsidiary has commenced a tender offer that provides stockholders with an opportunity to sell shares at $0.35 per share in cash.  We believe this price is likely lower than the share price the Board aspired to obtain during the recent sale process. However, we believe it is a full and fair value for the Company and offers both an attractive premium for stockholders, as well as immediate liquidity for a stock that is thinly traded.

We hereby request that the Board support the proposed tender offer, and in doing so, consider the following:

  • The offer represents a 32% premium on the stock’s trailing 30 day closing price;
  • The offer provides immediate liquidity for all stockholders;
  • The trading volume reported for April is less than 65,000 shares per day, on over 45 million shares outstanding;
  • The Company is a sub-scale public company and may not be able to continue to bear the costs and obligations of a public company;
  • The Company cannot withstand another shift in strategy during what may be the worst market in history;
  • The Company may not be able to continue to bear the costs of its management team, including the lucrative packages offered to its recent hires;
  • The Company recently issued executive stock options at $0.35 per share, which the Company must believe is fair value;
  • The Company had $32MM in cash in September and only $27MM in December;
  • The Company continues to burn cash and is likely to do so for the foreseeable future.  It is reasonable to believe that the Company may run out of cash by the end of 2010;
  • Without at least breakeven results, stockholder value will only continue to deteriorate until no stockholder value remains;
  • Any acquiror must take on the Company’s cash burn and fund the Company in a highly uncertain environment; and
  • Any acquirer may have to invest significant additional funds into the Company to make it operationally efficient and competitive.

It is time to stop the erosion in stockholder value. Looking at where Autobytel’s stock price traded a year ago is not indicative of the true value of the Company, but it should serve as a reminder of the value that was destroyed.  Autobytel’s management should realistically evaluate the prospects for its business. A candid assessment of that situation should lead management to conclude that an all cash offer at a significant premium to all Company stockholders is in the best interests of the stockholders.

We are pleased to make this proposal to our fellow stockholders.  We believe they will find it to be attractive in light of both the Company’s trading history, and a realistic assessment of the Company’s prospects.  We are committed to completing this offer and hopeful that we will be able to work cooperatively with the Company in doing so.

We look forward to your timely response.

Sincerely,

Trilogy Enterprises, Inc.

About Trilogy Enterprises, Inc.
Trilogy creates technology-powered business solutions that deliver profitable new customers to companies worldwide.    Trilogy, through its affiliates, has enjoyed decades of success by delivering innovative solutions to the world’s largest companies.

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