CarsDirect Acquires 1-800 Communications

LOS ANGELES--June 9, 2005--CarsDirect, a leading Internet car-shopping service, today announced the acquisition of 1-800 Communications, a top provider of special finance auto leads to dealers. This latest addition provides a powerful new sales tool for CarsDirect's premier dealer network and makes CarsDirect the nation's largest special finance lead service. The acquisition also delivers significant new benefits for the 7 million unique consumers who visit the CarsDirect.com and Autos.com websites each month to research, finance and buy new and used vehicles.

"1-800 Communications' leadership in matching credit-challenged consumers with the best, broadest finance options makes it a perfect complement for our no-hassle approach to online transactions," said Bob Brisco, president and CEO, CarsDirect. "Less than perfect credit should not be a roadblock to getting a new vehicle. By adding this additional expertise, we can now offer even broader finance alternatives, coupled with our award-winning service and premier dealer network."

To ensure that the special finance business is seamlessly integrated in CarsDirect's automotive services operations, Stuart Heller, founder and CEO of the Hicksville, New York-based 1-800 Communications, will join the company at its Los Angeles headquarters, effective immediately.

"Joining forces with CarsDirect adds tremendous value for our dealer network and marketing partners," says Heller, whose extensive experience in online marketing strategies helped fuel the company's rapid growth to category leadership. "Being able to offer more flexible special finance choices to the thousands of new and used car buyers who do business through sites like CarsDirect.com each month will generate high incremental sales for the entire dealer network and opportunities to promote additional offers for our marketing partners."

Nearly 25% of all car buyers can't qualify for standard financing options, a figure that has sent this $200 billion finance sector on a steep and continuous growth trajectory, according to industry publication Ward's Dealer Business. That fact points out how critical a diverse menu of special finance choices is for car buyers.

With the addition of 1-800 Communications, the CarsDirect Special Finance Program not only provides dealers high quality leads, but the program ensures maximum flexibility for dealer needs as well. Dealers can control both the market area as well as the quantity of leads they purchase.

"Special finance is a rapidly growing industry that dealers must be competitive in," said Mark Miller, senior vice president, dealer and industry relations, CarsDirect. "Today's successful dealership offers finance options for all types of customer needs, including buyers who have experienced challenges that negatively impacted their credit score."

About CarsDirect

Los Angeles-based CarsDirect (www.carsdirect.com) is a leading online automotive research and shopping service, providing new and used automobiles and related products and services, such as loan and lease financing and in-demand aftermarket products including extended warranties. CarsDirect is the first online provider to offer visitors a dedicated Research Center as well as three distinctive car buying options: buying a new car online through the company's award-winning direct channel; being matched with a top-quality new car dealer of their choice via the CarsDirect Connect channel; or locating and purchasing a previously owned vehicle through the CarsDirect Used channel.

CarsDirect.com has been named one of the "50 Best Websites" by Time Magazine, chosen a "Forbes Favorite" three times by Forbes Magazine and selected as a "Top 100 Internet Site" for three consecutive years in PC Magazine.