Autobytel Names New President-CEO, Again... Reduces Workforce, Again

Shares fall into 30-cent range ahead of an inevitable NYSE delisting notification

IRVINE, CA - December 12, 2008: Just days after trumpeting their latest addition to their "AutoReach Ad Network," Autobytel Inc. today announced that Jeffrey H. Coats, a director of the company, was named President and Chief Executive Officer effective December 11, 2008.

Coats, 51, has served on Autobytel’s Board since August 1996. He is a partner of Southgate Alternative Investments, a diversified investment firm, since November 2007. Mr. Coats has also been an Executive Chairman of Mikronite Technologies Group Inc., an industrial technology company, since April 2007, having previously served as the company’s Chief Executive Officer, President and a director since February 2002. Prior to that, he was a Founder and Managing Director of TH Lee Global Internet Managers, L.P., a fund focused on making equity investments in eCommerce and Internet-related companies globally, where he remains a limited partner. Coats served as Managing Director of GE Equity, Inc., a wholly-owned subsidiary of General Electric Capital Corporation, from April 1996 to July 1999. He was a Founder and Managing Director of GE Capital’s Corporate Finance Restructuring Group from 1990 to 1993 and Region Manager and Managing Director of GE Capital’s Western United States Corporate Finance Group from 1989 to 1993. Coats serves on the Board of Directors of Congoleum Corporation, a resilient sheet and tile flooring company, and is a member of its Audit Committee and Restructuring Oversight Committee. He holds a B.B.A. in Finance from the University of Georgia and an M.B.A. in International Management from the American Graduate School of International Management.

Given his new position with Autobytel, Coats has resigned from the Audit and Compensation Committees of the company’s Board of Directors, but will remain as a director. Janet Thompson, a director of the company, has been appointed to the Audit and Compensation Committees and will act as Chairwoman of the Compensation Committee, and Jeffrey Stibel, a director of the company, has been appointed to the Compensation Committee. Mr. Coats replaces Mr. Riesenbach as CEO. Mr. Riesenbach has left the company and has resigned as a member of the company’s Board of Directors.

In light of new duties and responsibilities being undertaken as a result of the workforce reduction, Mark Garms, the company’s Senior Vice President, Dealer Operations and Strategy, was promoted to the newly created position of Senior Vice President and Chief Operating Officer. Mr. Garms has been with Autobytel for approximately seven years, serving in various capacities during such time. In addition, Curtis DeWalt, the company’s Vice President and Controller, was promoted to Senior Vice President, Finance and Controller; Glenn Fuller, the company’s Senior Vice President, Chief Legal Officer and Secretary, was promoted to Senior Vice President, Chief Legal and Administrative Officer and Secretary; and Lawrence Brogan, the company’s Vice President, Financial Planning & Analysis, was promoted to Senior Vice President, Strategic and Financial Planning.

Autobytel also announced that it has implemented an additional workforce reduction of approximately 40 employees, or 25% of its workforce. Autobytel anticipates that as a result of this action, the company will generate savings of approximately $5.2 million on an annual basis. The company expects to record a charge related to severance and other employee-related costs totaling approximately $4.5 million in the 4th quarter, inclusive of a severance payment to Mr. Riesenbach.

Michael Fuchs, Chairman of Autobytel’s Board of Directors, said, "Autobytel is continuing to take immediate steps to bring its costs in line with anticipated revenues. The Board believes these actions are necessary and appropriate to further stabilize the company. The additional workforce reduction announced today should allow the company to more quickly reach its goal of achieving cash flow break even. Additionally, the appointment of Jeff as Autobytel’s new CEO and the promotion of Mark to COO, underscores the Board's focus on immediately improving the company’s operating results and signals the Board's confidence in the company’s ability to execute on its business plan in this turbulent economic environment.”

"I look forward to working with the management team to successfully implement our business plan,” said Coats. “The management team and Board are extremely focused on achieving immediate improvement in the company’s operating results. We are committed to increasing shareholder value."

This past September Autobytel cut 35% of their then current workforce (eliminating 75 jobs) and retained RBC Capital Markets to find a way to dump the company. To many observers the replacement of Riesenbach, who was supposedly a content/audience development kind-of-guy, with a "bean counter" seems to indicate the company's determination to liquidate.