AAA Mid-Atlantic Selects Zag to Power Its Member Auto Buying Program, Leads the Way as First AAA Club to Offer Members Upfront Pricing.

AAA Mid-Atlantic's Decision to Outsource Member Auto Buying to Zag Heralds New Trend That Will Deliver Bigger Savings and A Better Car Buying Experience to AAA Members

WILMINGTON, Del. & SANTA MONICA, Calif. -- AAA Mid-Atlantic today unveiled an auto buying program, powered by Zag, that helps members secure great, up-front prices on new and used cars before ever walking into the dealer's showroom.

AAA Mid-Atlantic is the fifth largest AAA-affiliated club in the nation with 3.8 million members in five mid-Atlantic states and the District of Columbia. The exclusive Zag (http://www.zag.com) partnership marks a new direction for AAA Mid-Atlantic and other large affinity groups seeking better value and better service for their members.

Zag's program connects consumers with a nationwide network of pre-qualified dealers who have agreed to provide guaranteed no-hassle, upfront pricing. The AAA Mid-Atlantic auto buying portal - accessible at http://aaamidatlantic.zag.com/main.html - now, for the first time, offers members access to used car inventories. Prior to partnering with Zag, AAA Mid-Atlantic managed and operated its auto buying program internally similar to other large AAA clubs across the country. These programs have traditionally only focused on providing members new car product information and introductions to a local dealer.

"The Zag relationship represents a major departure for our organization - one that we're delighted to be able to make," said Ed Tobler, Managing Director of Automotive Services Administration & Products at AAA Mid-Atlantic. "When we determined that our members would benefit if we removed ourselves from the car-buying equation, we began to look for a company for which facilitating the process is a core competency. Zag's demonstrated capabilities were clearly head and shoulders above the competition. They are simply doing it better than anyone else."

"AAA Mid-Atlantic is a respected organization in its region, and a true leader among AAA clubs nationally," said Scott Painter, Zag CEO. "It's the first AAA club to offer upfront pricing to its members. AAA is arguably one of the most trusted brands in the automotive industry and AAA Mid-Atlantic is a pioneer among the AAA community in actively seeking out the best possible solution and savings for their members. We are proud to be able to serve the members and look forward to expanding our program. Not only will AAA Mid-Atlantic members be able to see an upfront price prior to making any form of commitment, they will also have access to all available public and private incentives and monthly payments.

"Zag's platform will also generate more warranty and insurance sales for AAA through an integrated and real-time quoting engine that gives members additional AAA product information as they research vehicles," said Painter. "All of these are firsts in the AAA community, and we are excited to partner with AAA Mid-Atlantic."

Zag technology will provide AAA Mid-Atlantic members with no-haggle, upfront pricing on every make and model, as well as research tools for shopping for new and used cars online. In addition, the Zag partnership will enable AAA Mid-Atlantic to track the exact number of cars sold through its auto buying program, which Zag will manage for the club.

Zag supports AAA's other auto-related products and services, integrating them for a truly comprehensive AAA-approved auto purchasing process. "Because we have chosen to partner with Zag for our auto buying program, AAA Mid-Atlantic members can now expect to have a genuinely better car buying experience," Tobler said.

"The Zag/AAA Mid-Atlantic program will help strengthen AAA's brand by providing technology that will give members what they want from their auto buying program - that is, a great, upfront price and a better experience overall," Painter said. "It's a win-win situation for all involved - dealers will gain access to motivated, in-market buyers, and car buyers will gain peace of mind from receiving that upfront price that is guaranteed from the participating dealer."

About AAA Mid-Atlantic

AAA Mid-Atlantic is the nation's fifth largest auto club with 3.8 million members in Delaware, Maryland, New Jersey, Pennsylvania, Virginia and the District of Columbia, providing automotive, travel, personal insurance and financial services. AAA has represented motorists and travelers for more than 100 years. Nearly 27 percent of U.S. drivers are AAA members. For more information, please visit www.AAA.com.

About Zag

Zag (www.zag.com) has created a better way to buy a car. Zag operates a robust auto shopping, research and pricing technology platform that saves buyers money by concentrating group buying power, while providing a superior car buying experience by connecting buyers with select dealers that provide great upfront pricing and a no-hassle delivery process. Zag provides its platform on a private-label basis to affinity buying groups, such as USAA, 14 AAA motoring clubs, Overstock.com, Parenting.com, and Capital One Auto Finance. Zag is fully operational for 68 percent of U.S. households and serves more than 93 percent of in-market car buyers. Zag's investors include Anthem Venture Partners, Capital One Auto Finance, GRP Partners, Arcturus Capital, Callaway Cars and the Skoll Fund. The company's approach to car buying and selling is garnering awards - Entretech gave Zag its 2008 Entrepreneurship Award for emerging companies, InfoWorld designated Zag's platform as one of the 100 most innovative corporate IT solutions for 2006, and Entrepreneur Magazine named Zag in its 2006 "Hot 100" list of the fastest-growing companies. Zag is based in Santa Monica, Calif.