Autoweb Completes Marketing Partnership Restructuring

Program Reduces Future Obligations by Approximately $40 Million;

Company to Take $13 Million Charge in First Quarter of 2001



Apr 05, 2001, 01:00 ET from Autoweb.com

    SANTA CLARA, Calif., April 5 /PRNewswire/ -- Autoweb.com (Nasdaq: AWEB), a
 leading consumer automotive Internet service, today announced that it
 completed its marketing partnership restructuring program.
     As of today, this program has successfully reduced the Company's future
 cash obligations from the second quarter onwards by approximately $40 million.
 These efforts are projected to reduce year-over-year expenses for the second
 through fourth quarters of 2001 by approximately $15 million.  There will be a
 non-recurring cash settlement charge of approximately $13 million in the first
 quarter.
     In making the announcement, management reiterated that the restructure of
 certain marketing agreements is instrumental as the Company moves towards its
 goal of being EBITDA positive.  "We are successfully implementing the plan we
 outlined in our fourth quarter conference call, and these new agreements
 represent a milestone in our drive to EBITDA profitability," said Autoweb's
 President and CEO Jeffrey Schwartz.  "Moreover, the significant progress we
 have made in addressing the issues related to our past marketing agreements
 greatly strengthens our position as we examine strategic alternatives to
 maximize stockholder value."
 
     About Autoweb
     Autoweb.com is a leading automotive Internet service, guiding users
 through every stage of vehicle ownership.  Through its direct and referral
 commerce channels, Autoweb.com offers consumers a variety of ways to purchase
 new and used vehicles in conjunction with vehicle manufacturers, local Member
 Dealers and other commerce partners.  The Company's Web site also provides
 consumers with a wide range of automotive-related products to support the
 complete lifecycle of the vehicle, including finance, insurance and
 maintenance.  Autoweb.com features comprehensive, unbiased research from its
 Automotive Information Center (AIC) division.
     Autoweb also continues to set the standard in the business-to-business
 marketplace by providing Web sites with the most advanced technology to view
 automotive information, and accurate and reliable automotive data and content.
 Currently, major automobile manufacturers, including DaimlerChrysler, Ford,
 General Motors, Honda and Toyota, use Autoweb's automotive data to power their
 sites.  Some of the major consumer portals also use Autoweb's content and
 technology, including AOL, Yahoo, Lycos, MSN and Carpoint.  AutoSuite is
 highly configurable for any individual AIC customer, as the interface can
 match look and feel, while vehicles (both target and competitor) and specific
 features can be limited to desired selections.  For more information, please
 visit http://www.autoweb.com and http://www.autosite.com.
 
     Safe Harbor Statement:
     Certain statements in this news release, including statements concerning
 the effect of the restructuring of certain marketing agreements and the
 Company's ability to reach profitability, are forward-looking statements.
 Forward-looking statements involve risks and uncertainties that could cause
 actual results to differ from anticipated results.  Other risks and
 uncertainties include the fact that the Company received a Nasdaq Staff
 Determination letter on March 1, 2001, indicating that the Company has failed
 to comply with the minimum bid price requirement for continued listing, and is
 subject to delisting from the Nasdaq National Market, changes in competitive
 behavior or market forces, uncertainties regarding response from the vehicle
 manufacturers, changes in the legal or regulatory environment, changes or lack
 of changes in consumer preferences over time, technological challenges and an
 inability to forecast future traffic and transactions.  Further information on
 risk factors that could affect results is detailed in Autoweb's filings with
 the Securities and Exchange Commission, including the Company's Annual Report
 on Form 10-K for the year ended Dec. 31, 2000, filed with the Securities and
 Exchanges Commission, including (without limitation) under the captions, "Risk
 Factors" and "Management's Discussion and Analysis of Financial Condition and
 Results of Operations."
 
 

SOURCE Autoweb.com
    SANTA CLARA, Calif., April 5 /PRNewswire/ -- Autoweb.com (Nasdaq: AWEB), a
 leading consumer automotive Internet service, today announced that it
 completed its marketing partnership restructuring program.
     As of today, this program has successfully reduced the Company's future
 cash obligations from the second quarter onwards by approximately $40 million.
 These efforts are projected to reduce year-over-year expenses for the second
 through fourth quarters of 2001 by approximately $15 million.  There will be a
 non-recurring cash settlement charge of approximately $13 million in the first
 quarter.
     In making the announcement, management reiterated that the restructure of
 certain marketing agreements is instrumental as the Company moves towards its
 goal of being EBITDA positive.  "We are successfully implementing the plan we
 outlined in our fourth quarter conference call, and these new agreements
 represent a milestone in our drive to EBITDA profitability," said Autoweb's
 President and CEO Jeffrey Schwartz.  "Moreover, the significant progress we
 have made in addressing the issues related to our past marketing agreements
 greatly strengthens our position as we examine strategic alternatives to
 maximize stockholder value."
 
     About Autoweb
     Autoweb.com is a leading automotive Internet service, guiding users
 through every stage of vehicle ownership.  Through its direct and referral
 commerce channels, Autoweb.com offers consumers a variety of ways to purchase
 new and used vehicles in conjunction with vehicle manufacturers, local Member
 Dealers and other commerce partners.  The Company's Web site also provides
 consumers with a wide range of automotive-related products to support the
 complete lifecycle of the vehicle, including finance, insurance and
 maintenance.  Autoweb.com features comprehensive, unbiased research from its
 Automotive Information Center (AIC) division.
     Autoweb also continues to set the standard in the business-to-business
 marketplace by providing Web sites with the most advanced technology to view
 automotive information, and accurate and reliable automotive data and content.
 Currently, major automobile manufacturers, including DaimlerChrysler, Ford,
 General Motors, Honda and Toyota, use Autoweb's automotive data to power their
 sites.  Some of the major consumer portals also use Autoweb's content and
 technology, including AOL, Yahoo, Lycos, MSN and Carpoint.  AutoSuite is
 highly configurable for any individual AIC customer, as the interface can
 match look and feel, while vehicles (both target and competitor) and specific
 features can be limited to desired selections.  For more information, please
 visit http://www.autoweb.com and http://www.autosite.com.
 
     Safe Harbor Statement:
     Certain statements in this news release, including statements concerning
 the effect of the restructuring of certain marketing agreements and the
 Company's ability to reach profitability, are forward-looking statements.
 Forward-looking statements involve risks and uncertainties that could cause
 actual results to differ from anticipated results.  Other risks and
 uncertainties include the fact that the Company received a Nasdaq Staff
 Determination letter on March 1, 2001, indicating that the Company has failed
 to comply with the minimum bid price requirement for continued listing, and is
 subject to delisting from the Nasdaq National Market, changes in competitive
 behavior or market forces, uncertainties regarding response from the vehicle
 manufacturers, changes in the legal or regulatory environment, changes or lack
 of changes in consumer preferences over time, technological challenges and an
 inability to forecast future traffic and transactions.  Further information on
 risk factors that could affect results is detailed in Autoweb's filings with
 the Securities and Exchange Commission, including the Company's Annual Report
 on Form 10-K for the year ended Dec. 31, 2000, filed with the Securities and
 Exchanges Commission, including (without limitation) under the captions, "Risk
 Factors" and "Management's Discussion and Analysis of Financial Condition and
 Results of Operations."
 
 SOURCE  Autoweb.com