Competitors Attempt to Emulate Autoweb.com's Success; Autoweb.com Changes Landscape of Automotive Retailing and Illustrates True Electronic Commerce.

SANTA CLARA, Calif.--(BUSINESS WIRE)--August 7, 1998-- Award-winning, consumer-focused Autoweb.com (http://www.autoweb.com) has changed the landscape of automotive retailing in the United States by establishing a revolutionary retailing process, truly illustrating electronic commerce success.

The company is involved in more than $600 million worth of vehicle sales per month. As the pioneer in online automotive retailing, Autoweb.com's business has been focused on the needs of the consumer, resulting in astounding brand loyalty and financial success.

A recent redesign by a competitor emulates Autoweb.com's navigational style, literally duplicating the tab design and category labels, which further illustrates Autoweb.com's leadership position and design excellence in providing faster, easier and better car buying for the consumer.

"Imitation is the sincerest form of flattery," said Payam Zamani, co-founder and executive vice president of Autoweb.com. "Autoweb.com has created a revolutionary automotive retailing process that has resulted in the highest consumer satisfaction ratings among automobile buyers in decades.

"We realize that some companies will attempt to enter the automotive market or will look to Autoweb.com for direction, but without focus as well as commitment to a scalable consumer-centric model, they will not be able to gain market share," Payami added.

Both dealers and consumers trust the Autoweb.com brand as reliable and consistent. In fact, in a recent USA Today/Intelliquest poll, consumers overwhelmingly named Autoweb.com the best car-buying service on the World Wide Web. And, with more than 4,000 new and used car dealerships, Autoweb.com leads the competition with a wider selection of available vehicles.

"We've discovered a new way to sell vehicles to a new breed of car buyers who are more educated and demanding than we have seen in the past," said Andrew Bloedel, Internet services manager of Steven's Creek Toyota. "We follow up immediately with the Autoweb.com customer, usually within hours.

"Autoweb.com has provided us with the most effective means of reaching serious car buyers. Last month, Autoweb.com helped us sell close to $500,000 worth of cars," Bloedel added.

The key to Autoweb.com's success lies in the consistency of its integrity-based service for car buyers across North America looking for any make or model, new or used. Moreover, Autoweb.com offers everything the consumer needs for autos, all in one place, including financing, insurance, the ability to sell a car, roadside assistance, research information, community discussion areas and much more.

Founded in November 1994, Autoweb.com (http://www.autoweb.com) is the leading online brand for new and used cars, where informed, motivated buyers are put in touch with an exclusive network of the highest-ranking dealers in the United States and Canada. Consumers overwhelmingly named Autoweb.com the best car-buying service on the World Wide Web according to a recent poll by USA Today/Intelliquest.

The company has strategic partnerships and affiliations with industry leaders such as Yahoo!, State Farm Insurance, Kelley Blue Book, C/NET's Search.com, Netscape Communications, Lycos, and Car and Driver Online.

For more information, contact Autoweb.com, 3270 Jay St., Building 6, Santa Clara, Calif. 95054. Telephone: [phone], Fax: [phone], Email: [e-mail].

    CONTACTS: Autoweb.com
               Anita Corona, 408/970-9100, [e-mail]
                    or
               Fleishman-Hillard
               Jamie Ludowitz, 213/629-4974, [e-mail]