Consumers Turn to Web as Often as to Dealers in Auto Search, Says Keynote Study.

SAN MATEO, Calif. -- Keynote Systems (Nasdaq:KEYN)

--Web Plays Major Role in Auto Purchase Process

--Consumers Primarily Attracted to Search and Comparison Functions

--Kelley Blue Book and cars.com Offer Best Online Experience

--Keynote Study Examines Third Party Auto Web Sites

Consumers are as likely to visit an auto Web site as they are to visit a dealer when shopping for a new or used car according to a new study by Keynote Systems (Nasdaq:KEYN), The Internet Performance Authority(R).

The Keynote Customer Experience (CE) Rankings for the Third Party Auto Industry is a syndicated research study based on research with 2,000 consumers as they evaluated and interacted with 10 leading third-party auto Web sites. In addition to traditional opinion data, Keynote's proprietary research technology allows for the collection of detailed qualitative and behavioral data as consumers perform tasks at each site.

The Autobytel.com, Automotive.com, AutoTrader.com, cars.com, CarsDirect, Edmunds.com, Kelley Blue Book, MSN Autos, Vehix.com, and Yahoo! Autos Web sites were evaluated as part of this competitive benchmarking study.

Auto Web Sites First Stop for Consumers

When shopping for a new or used auto, most consumers start by browsing manufacturer or third-party auto Web sites such as Kelley Blue Book and cars.com, according to the Keynote study. Online methods are now on par with or preferred over traditional car research methods such as searching newspaper ads or asking advice from friends and family. In fact, 58% of consumers say they prefer to research vehicles online.

The vast majority of consumers will visit a manufacturer's Web site (76%) or visit a dealership (75%) in their evaluation process. Consumers are slightly less inclined, but still very likely to visit a third party auto site (65%) -- or ask a friend or family member for advice (65%). Newspapers, a traditional medium for research, are now consulted by only 53% of consumers with Internet access.

When Researching Online, Search & Comparison Features Trump Price

When selecting a site to use in their vehicle research, Keynote found that consumers are more concerned with the site's search and comparison functionality than in vehicle prices. In fact, Keynote analysis found that price satisfaction is one of the lowest impact drivers of customer satisfaction online.

"Consumers are using the Web as their primary research vehicle when shopping for a new or used car," said Dr. Bonny Brown, director of research and public services at Keynote. "And because the Web is first and foremost a research tool in purchasing a car, consumers want strong search and comparison functions on auto sites."

According to the study, the primary reasons for using an independent auto site include comparing models (66% reporting), researching reliability information (65%), and obtaining vehicle specifications, features, and options (63%). Photos and visual aids are less important, but still critical to customer satisfaction with an auto site.

Slightly more than one-third of consumers (35%) participating in the study expressed a potential interest in purchasing a car via the Web -- with 20% willing to submit a quote request online. The top frustration for consumers visiting auto sites -- affecting 1 in 4 -- stems from uncertainty about who receives information provided during the quote request process.

Kelley Blue Book, cars.com Race Past Competition

Kelley Blue Book and cars.com outperformed the competition in topping the Keynote Customer Experience (CE) Rankings, an overall measure of online customer experience based on evaluation of more than 250 metrics. Kelley Blue Book was ranked the best site based in large part on its ability to support branding, drive customer conversion and create high levels of customer satisfaction on its site. In Keynote's specific evaluation of vehicle views and information, an important driver for overall site success, Kelley Blue Book also excelled, along with Edmunds.com and MSN Autos.

Keynote Customer Experience        Vehicle Views & Information
              Rankings                           Rankings
----------------------------------------------------------------------
  1      Kelley Blue Book              Kelley Blue Book
-----  ---------------------------------------------------------------
  2      cars.com                      Edmunds.com
-----  ---------------------------------------------------------------
  3      Edmunds.com                   MSN Autos
-----  ---------------------------------------------------------------

The sites providing the best online experience also topped the Keynote Conversion Impact Index, which gauges the overall likelihood of a visitor to request a quote from the site or purchase through the site. The Keynote study notes a direct correlation between online customer experience and intent to request a quote or purchase through a particular site.

The entire study, Keynote Customer Experience (CE) Rankings for the Third-Party Auto Industry, is a large-scale competitive benchmarking study examining overall industry trends and providing analysis of specific sites. The full report, available for sale, includes hundreds of additional data points, a detailed analysis of the findings and recommendations for improving site performance. For further information about the full report, visit http://www.keynote.com/syndicated.html.

Keynote Customer Experience Research

Keynote is the leading provider of customer experience research services, offering both syndicated and custom research examining consumer attitudes and behavior on the Web. Keynote's research provides critical business insight into online customer experiences, industry trends and competitive Web strategies for a variety of vertical industries. In addition to traditional opinion data, Keynote's proprietary research technology and access to a panel of 160,000+ consumers allows for the collection of detailed qualitative and behavioral data that inform its reports.

Keynote's syndicated research includes two distinct types of reports: the Keynote Customer Experience (CE) Rankings, which provide competitive benchmarking and rankings of the leading Web sites in a specific industry; and Open Web Research (OWR), which takes a broader look at the customer's experience across the entire Web when performing specific tasks, such as booking business travel.

Keynote CE (CE) Rankings are available for a number of industries including the retail, banking and credit card industries, as well as several travel verticals, including the lodging, cruise and rental car industries. The Keynote CE Rankings are the successor to the Vividence CE Rankings following Keynote's acquisition of Vividence in September 2004.

To learn more about Keynote's syndicated research offerings and for a list of the various vertical industry reports that are available, visit: http://www.keynote.com/solutions/cem_syndicated_research.html.

About Keynote

Founded in 1995, Keynote Systems (Nasdaq:KEYN), The Internet Performance Authority(R), is the worldwide leader in e-business performance management services. Over 2,100 corporate IT departments and 16,000 individual subscribers rely on Keynote's growing range of measurement and monitoring, service level and customer experience management services to improve e-business performance by reducing costs, improving customer satisfaction and increasing profitability.

Keynote is viewed as The Internet Performance Authority due to the company's global infrastructure of over 1,600 measurement computers in more than 50 cities worldwide that capture and store on a daily basis over 60 million Internet performance measurements, frequent media citations quoting Keynote's Web performance data and analysis, the company's market-leading Web performance indices for vertical markets and leading customer research that provides critical business insight into online customer experiences, industry trends and competitive Web strategies.

Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at www.keynote.com or by phone in the U.S. at 650-403-2400.

Keynote, The Internet Performance Authority and Perspective are registered trademarks of Keynote Systems, Inc. Other trademarks are the property of their respective owners. (C) 2004 Keynote Systems, Inc.