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Letter to the Editor

Autoweb Completes Marketing Partnership Restructuring

SANTA CLARA, Calif. -- Autoweb.com, a consumer automotive Internet service, has announced that it completed its marketing partnership restructuring program.

This program will reduce 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.

"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."

Autoweb.com is an automotive Internet service, offering 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 website also provides consumers with a wide range of automotive-related products to support the complete lifecycle of the vehicle, including finance, insurance and maintenance. 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.

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