As part of an initiative aimed at improving cash flow and attaining profitability, the company reduced total operating expenses in the third quarter of 2008 to $12.2 million, which included an incremental $1.8 million in severance and other employee-related costs related to the company's previously announced workforce reduction. Excluding the severance costs, total operating expenses declined nearly 33% to $10.4 million from $15.5 million in the prior-year period, and decreased approximately 16% on a sequential basis, excluding the $52.1 million non-cash goodwill impairment charge taken in the second quarter of 2008.

For purposes of financial reporting, revenues and expenses related to the company's Retention Performance Marketing (RPM) and Automotive Information Center (AIC) businesses, both divested in 2007, and its AVV business, which was sold in the first quarter of 2008, have been accounted for in discontinued operations.

Loss from continuing operations was reduced to $5.8 million, or $0.13 per share, for the 2008 third quarter, from $8.0 million, or $0.18 per share, for the year-ago period.

Non-cash share-based compensation expense was $0.6 million and $1.2 million, respectively, for the third quarters of 2008 and 2007.

The company reported a lower net loss for the third quarter of 2008 of $5.6 million, or $0.13 per share, compared with a net loss of $6.6 million, or $0.15 per share, for the third quarter of 2007, which included $1.4 million in income from discontinued operations.

Cash and cash equivalents rose to $32.2 million at September 30, 2008, from $28.3 million at December 31, 2007.

"This quarter, we continued to make substantial progress reducing costs and better aligning our organization against our short- and longer-term financial and operational goals," said Jim Riesenbach, president and CEO of Autobytel. "These actions, combined with our strong cash position, provide us with a degree of stability in what has become one of the most challenging automotive and macro economic environments in our time."

During the third quarter, Autobytel announced that it had retained investment banking firm RBC Capital Markets as its financial advisor to assist the company in exploring and evaluating strategic alternatives to maximize shareholder value. These alternatives could include the possible sale of the company or certain of its assets, or strategic partnerships.

Metrics and Key Performance Indicators
(In thousands, except for Page Views per Visit, Advertising
Revenue per Thousand Page Views, Number of Co-Brand Partners and
Ad Network Publishers and Percentages)
                                                           Q3 2008                 Q2 2008                 Q3 2007
Unique Visitors                                            7,180                   7,193                   23,976
Page Views per Visit                                       6.29                    6.93                    2.68
Total Page Views                                           49,714                  55,293                  103,724
Advertising Revenue per Thousand Page Views (RPM)          $24                     $29                     $39
Number of Co-Brand Partners                                19                      14                      9
Ad Network Publishers                                      12                      12                      4
Total Auto Leads                                           771                     865                     825
Wholesale Auto Leads                                       47      %               46      %               40       %
Retail Auto Leads                                          53      %               54      %               60       %
Annualized Revenue per Employee                            $424                    $335                    $261

Conference Call

Autobytel management will host a conference call today at 5:00 p.m. ET/2:00 p.m. PT to discuss its 2008 third quarter financial results. The conference call will be available to all interested parties through a live webcast at www.autobytel.com (click on "Investor Relations" and then click on "Conference Calls"). Please visit the website at least 15 minutes prior to the start of the call to register and download any necessary software. For those unable to listen to the live broadcast, the call will be archived for one year on Autobytel's website. A telephone replay of the call will also be available for approximately one week by dialing 800-642-1687 (domestic) or 706-645-9291 (international) and entering conference ID 70170189.

About Autobytel Inc.

Autobytel Inc. (Nasdaq: ABTL) is an Internet automotive marketing services company that helps dealers and manufacturers sell cars and related products and services. The company owns and operates consumer-facing automotive websites, including its flagship site, MyRide.com(R), which is designed to help consumers find, see, buy and learn anything related to automobiles. The company's other websites are: Autobytel.com(R), Autoweb.com(R), Car.comsm, CarSmart.com(R), AutoSite.com(R), and CarTV.com(R). By providing a convenient and comprehensive automotive consumer experience across the purchase and ownership lifecycle, Autobytel seeks to provide dealerships with opportunities to connect with a steady, diverse stream of motivated, serious shoppers, while providing manufacturers with precision-targeted brand and product advertising opportunities. In addition to its websites, the company generates leads and advertising opportunities for dealers and automakers through its marketing network, which includes the AutoReach ad network, co-brands, such as ESPN.com, and marketing affiliates such as AOL, Edmunds and Kelly Blue Book.

Forward-Looking Statement Disclaimer

The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws, including, but not limited to, the ability to enhance shareholder value through the review and exploration of strategic alternatives, among others. These forward-looking statements are not guarantees of future performance and involve certain assumptions and certain risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. Autobytel undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements are changes in general economic conditions, the economic impact of terrorist attacks or military actions, increased dealer attrition, pressure on dealer fees, increased or unexpected competition, the failure of new products and services to meet expectations, failure to retain key employees or attract and integrate new employees, that actual costs and expenses exceed the charges taken by Autobytel, changes in laws and regulations, costs of legal matters, including, defending lawsuits and undertaking investigations and related matters, and other matters disclosed in Autobytel's filings with the Securities and Exchange Commission. Investors are strongly encouraged to review our Annual Report on Form 10-K for the year ended December 31, 2007 and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of our stock.

AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands, except share amounts)
                                                                                             September 30,                     December 31,
                                                                                             2008                              2007
ASSETS
CURRENT ASSETS:
                    Cash and cash equivalents                                                $     32,170                      $     27,601
                    Accounts receivable, net of allowances for bad debts and customer              12,698                            11,692
                    credits of $578 and $534, respectively
                    Prepaid expenses and other current assets                                      1,794                             1,739
                    Assets held for sale                                                           -                                 17,160
                    Total current assets                                                           46,662                            58,192
Property and equipment, net                                                                        9,229                             10,757
Goodwill                                                                                           -                                 52,074
Investment and other assets                                                                        918                               1,133
                    TOTAL ASSETS                                                             $     56,809                      $     122,156
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
                    Accounts payable                                                         $     4,032                       $     5,852
                    Accrued expenses                                                               5,009                             6,470
                    Deferred revenues                                                              2,082                             1,749
                    Other current liabilities                                                      1,253                             1,199
                    Liabilities held for sale                                                      -                                 198
                    Total current liabilities                                                      12,376                            15,468
                    Other non current liabilities                                                  271                               436
                    TOTAL LIABILITIES                                                              12,647                            15,904
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
                    Preferred stock, $0.001 par value; 11,445,187 shares authorized;               -                                 -
                    none outstanding
                    Common stock, $0.001 par value; 200,000,000 shares authorized;                 44                                44
                    45,219,679 and 43,788,663 shares issued and outstanding,
                    respectively
                    Additional paid-in capital                                                     299,742                           296,964
                    Unrealized gain                                                                680                               686
                    Accumulated deficit                                                            (256,304  )                       (191,442  )
                    TOTAL STOCKHOLDERS' EQUITY                                                     44,162                            106,252
                    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                               $     56,809                      $     122,156

AUTOBYTEL INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Amounts in thousands, except per-share amounts)
                                                                  Three Months Ended                            Nine Months Ended
                                                                  September 30,                                 September 30,
                                                                       2008                   2007                   2008                    2007
REVENUES:
                 Lead fees                                        $    15,571            $    17,576            $    50,910             $    51,485
                 Advertising                                           1,640                  4,318                  5,906                   13,971
                 Other                                                 59                     17                     137                     43
                 Total revenues                                        17,270                 21,911                 56,953                  65,499
COSTS AND EXPENSES:
                 Cost of revenues                                      11,107                 14,934                 37,146                  39,371
                 Sales and marketing                                   4,001                  5,260                  13,516                  16,181
                 Technology support                                    3,651                  4,577                  11,924                  13,389
                 General and administrative                            4,551                  5,599                  15,203                  20,507
                 Amortization of acquired intangible assets            42                     42                     125                     422
                 Patent litigation settlement                          -                      -                      (2,667   )              (12,000  )
                 Goodwill impairment                                   -                      -                      52,074                  -
                 Total costs and expenses                              23,352                 30,412                 127,321                 77,870
                 Operating loss                                        (6,082  )              (8,501  )              (70,368  )              (12,371  )
Interest and other income                                              271                    486                    1,116                   1,425
Foreign currency exchange loss                                         -                      -                      -                       (7       )
Provision for income taxes                                             -                      -                      -                       -
Loss from continuing operations                                        (5,811  )              (8,015  )              (69,252  )              (10,953  )
Discontinued operations, net                                           184                    1,427                  4,390                   9,980
NET LOSS                                                          $    (5,627  )         $    (6,588  )         $    (64,862  )         $    (973     )
BASIC LOSS PER COMMON SHARE:
                 Loss from continuing operations                  $    (0.13   )         $    (0.18   )         $    (1.57    )         $    (0.25    )
                 Discontinued operations, net                          -                      0.03                   0.10                    0.23
Basic loss per common share                                       $    (0.13   )         $    (0.15   )         $    (1.47    )         $    (0.02    )
DILUTED LOSS PER COMMON SHARE:
                 Loss from continuing operations                  $    (0.13   )         $    (0.18   )         $    (1.57    )         $    (0.25    )
                 Discontinued operations, net                          -                      0.03                   0.10                    0.23
Diluted loss per common share                                     $    (0.13   )         $    (0.15   )         $    (1.47    )         $    (0.02    )
Comprehensive loss
                 Net loss                                         $    (5,627  )         $    (6,588  )         $    (64,862  )         $    (973     )
                 Unrealized gain (loss)                                33                     -                      (6       )              -
Comprehensive loss                                                $    (5,594  )         $    (6,588  )         $    (64,868  )         $    (973     )

SOURCE: Autobytel Inc.

Autobytel Inc. 
Media Relations 
Melanie Webber, 949.862.3023 
melaniew@autobytel.com 
or 
Investor Relations 
Crystal Hartwell, 949.437.4755 
crystalh@autobytel.com 
or 
PondelWilkinson Inc. 
Roger Pondel/Laurie Berman, 310.279.5980 
investor@pondel.com

Expected next investor conference call information:
Conference Call Date: 11/6/2008
Conference Call Time: 5:00 PM
Conference Call URL: http://www.autobytel.com/content/framed/index.cfm/action/InvestorRelations

About Autobytel Inc.

Autobytel Inc. is an Internet automotive marketing services company that helps dealers and manufacturers sell cars and related products and services. The company owns and operates consumer-facing automotive websites, including its flagship site, MyRide.com(R), which is designed to help consumers find, see, buy and learn anything related to automobiles. The company's other websites are:Autobytel.com(R), Autoweb.com(R), Car.comSM, CarSmart.com(R), AutoSite.com(R), and CarTV.com(R). By providing a convenient and comprehensive automotive consumer experience across the purchase and ownership lifecycle, Autobytel seeks to provide dealerships with opportunities to connect with a steady, diverse stream of motivated, serious shoppers, while providing manufacturers with precision-targeted brand and product advertising opportunities. In addition to its websites, the company generates leads and advertising opportunities for dealers and automakers through its marketing network, which includes the AutoReach ad network, co-brands, such as ESPN.com, and marketing affiliates such as AOL, Edmunds and Kelly Blue Book.

SOURCE: Autobytel Inc.

Autobytel Inc. 
Investor Relations 
Crystal Hartwell, 949-437-4755 
crystalh@autobytel.com 
or 
PondelWilkinson Inc. 
Roger Pondel/Laurie Berman, 310-279-5980 
investor@pondel.com