EXHIBIT 99.1

AUTOBYTEL INC. REPORTS RECORD REVENUE AND PROFITS

Net Income Increases 29% Sequentially on 7% Revenue Gain; Cash Balance of $51.7 million

IRVINE, CA – July 24, 2003 – Autobytel Inc. (Nasdaq: ABTL), a leading Internet automotive marketing services company, today announced financial results for the second quarter ended June 30, 2003.

Highlights for the quarter:

· Net income of $1.1 million, or $0.03 per share, on a GAAP basis, meeting analysts’ estimates.

· Revenues of $21.7 million, representing the highest reported quarterly revenue in the company’s history

· Net cash provided by operations of $2.3 million, a doubling from Q1 2003

· Acquisition of AVV for $4.8 million in cash and 711,109 shares of common stock

· Private placement of 5 million shares of common stock for net proceeds of $25.6 million

· Cash balance of $51.7 million

“Growing net income at four times the rate of revenue demonstrates the unique leverage and financial benefits of our business model,” noted Jeffrey Schwartz, president and CEO of Autobytel. “With the acquisition of AVV, the raising of additional capital, and our strong cash flow, we are well positioned to make strategic advances and further solidify our position as a leader in the automotive marketing services category.”

Autobytel reported net income for the second quarter ended June 30, 2003 of $1.1 million, or $0.03 per share. This compares to a net loss for the quarter ended June 30, 2002 of $(0.6) million, or $(0.02) per share, and represents a 29% increase over the net income reported for the first quarter ended March 31, 2003, when net income was $0.9 million, or $0.03 per share.

For the second quarter of 2003, EBITDA was $1.7 million, or $0.05 per share, versus $0.2 million, or $0.01 per share, in the second quarter of 2002, and EBITDA of $1.4 million, or $0.04 per share, in the first quarter ended March 31, 2003.

Revenues for the second quarter ended June 30, 2003 totaled $21.7 million, versus revenues of $20.8 million for the quarter ended June 30, 2002 and revenues of $20.3 million for the first quarter ended March 31, 2003.

During the second quarter of 2003, net cash provided by operations was $2.3 million, marking our fourth consecutive quarter of cash generation. In addition, Autobytel received net proceeds of $25.6 million in a private placement of equity. Autobytel also used $4.8 million in cash to pay a portion of the purchase price for the acquisition of AVV. The Company’s cash balance as of June 30, 2003 was $51.7 million.

“I am very pleased with the progress we made this quarter,” continued Schwartz. “In our lead referral category, the results of our strategy of improving close rates, increasing customer support, and better leveraging our marketing tools are clear: dealers are up, pricing is up, gross margin is up, and average fees are up. Our CRM category has been bolstered by the AVV acquisition and the continuing strength of RPM, and our website advertising category produced record revenue, showing an 85% year-over-year growth.”

Highlights for the Second Quarter

Acquisition of Applied Virtual Vision, Inc (AVV): On June 4, 2003, Autobytel acquired AVV, a leading provider of CRM and sales management tools and data extraction services for dealerships. Autobytel acquired AVV for 711,109 shares of Autobytel Inc. common stock and $4.8 million in cash. The AVV transaction is expected to be accretive for 2003. AVV’s results of operations from the date of acquisition through June 30, 2003 are included in the consolidated financial statements. “AVV is an important acquisition for Autobytel strategically and, in just two months, the results are impressive,” noted Schwartz. “We are seeing tangible signs of its sales contribution to our core business of generating new and used car sales for dealers.”

Private Placement of Equity: On June 24, 2003, Autobytel completed the sale of 5 million newly-issued shares of common stock to six institutional investor groups in a private placement for net proceeds of $25.6 million. The six investor groups are T. Rowe Price, Massachusetts Financial Services (MFS), State Street, Coatue, Tudor, and Baron. Autobytel intends to use the proceeds for general corporate purposes, including potential acquisitions.

Revenues: Of Autobytel’s second quarter revenues of $21.7 million, $13.9 million were related to Program Fees, $3.5 million were related to Enterprise Sales, $3.0 million were related to Advertising, and $1.3 million were related to Other Products and Services. Approximately $0.4 million of total revenues is attributable to AVV and is included in the appropriate categories.

Operating Expenses: Total operating expenses in the second quarter were $20.7 million. Sales and marketing expenses totaled $13.1 million, including traffic acquisition costs. Product development and technology costs totaled $4.5 million. General and administrative costs totaled $3.1 million.

Unique Visitor Count: Autobytel’s four web site properties—Autobytel.com, Autoweb.com, Carsmart.com and AutoSite.com—continued to rank among the top online automotive destinations, receiving 6.6 million average monthly unique visitors in the

second quarter of 2003 as reported by comScore Media Metrix. Overall, automotive Internet traffic declined during the quarter, which is reflected in Autobytel’s lower sequential visitor count.

Purchase Requests: The Company delivered approximately 791,000 Purchase Requests during the second quarter of 2003. Closing ratios for Autobytel dealers increased from 16.6% in the first quarter to 17.4% in the second quarter.

Dealer Count: The Company reported approximately 20,900 relationships in the lead referral category. Additionally, there were approximately 4,800 relationships in the CRM tools and services category, including over 3,000 dealers using AVV products and services, 1,500 dealers using the iManager lead management tool, and 280 dealers using RPM.

Advertising Revenues: Revenues from online advertising increased sequentially by 7%, to $3.0 million, in the second quarter of 2003. This revenue grew 85% compared to the second quarter of 2002. The Company attributes success in this area to continued—and growing—demand from automotive manufacturers to advertise on highly targeted automotive content, which Autobytel provides through its advertising products, including Dynamic Content Placement^SM (DCP) and showcase marketing features.

RPM ^SM: Autobytel’s customer loyalty and retention program, RPM, added approximately 63 dealers during the second quarter, and average revenue per dealer subscribing to RPM continues to be in the $1,200 per month range. The Company continues to forecast sustained growth for this program throughout the rest of the year.

Headcount: As of June 30, 2003, the Company had 317 employees, including 65 employees added during the quarter, most of them associated with AVV.

Quality Initiatives: Autobytel’s proprietary Quality Verification System ^SM continued to contribute to improved results. This quarter, the Company implemented custom messaging, enabling dealers to more directly address potential customers through Autobytel’s websites, and custom “triple-scrubbing,” enabling dealers to further enhance the already rigorous process of validating consumer information. These initiatives added to the ongoing activities at Autobytel to improve close rates during the quarter.

Business Outlook

The company reiterates its previous revenue guidance, and expects to exit fiscal year 2003 at approximately a $95 million revenue run-rate. The Company forecasts that in the second half of 2003 net income will increase over 50%. Additionally, the Company expects that net cash provided by operations will increase in the second half of the year.

Non-GAAP Measures

In addition to furnishing its consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), Autobytel discloses certain non-GAAP financial measures, including EBITDA and EBITDA per share, which are derived from results based on GAAP. Autobytel believes these non-GAAP measures assist users in understanding its results of operations, cash generated, and resources available for strategic opportunities including reinvestment in the business and acquisitions.

The non-GAAP measures are provided to enhance the user’s overall understanding of Autobytel’s current financial performance and its prospects for the future. As such, these measures should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for or superior to GAAP results. A reconciliation of the non-GAAP measures to the nearest GAAP measures is included in the attached Statement of Supplemental Financial Information.

Conference Call

In conjunction with Autobytel Inc.’s second quarter 2003 earnings release, there will be a conference call broadcast live over the Internet today, July 24, 2003, at 5:30 PM EDT (2:30 PM PDT). The link to the Webcast conference is as follows:

http://www.irconnect.com/abtl/conf/2q2003.mhtml

The Webcast will be archived within 2 hours of the end of the call until the next quarter’s earnings announcement. To listen to the archived Webcast, please go to the link shown above.

About Autobytel Inc.

Autobytel Inc. (Nasdaq:ABTL), a leading Internet automotive marketing services company, helps retailers sell cars and manufacturers build brands through marketing, advertising and CRM (customer relationship management) tools and programs. The company owns and operates the automotive websites Autobytel.com, Autoweb.com, Carsmart.com and AutoSite.com, as well as AIC (Automotive Information Center), a leading provider of automotive marketing data and technology. Autobytel is the industry leader in dealership lead management and CRM solutions and owns and operates AVV, Inc., a leading provider of dealership CRM and sales management tools and data extraction services. As the Internet’s largest new-car buying service, Autobytel generates over a billion dollars a month in car sales for dealers through its services. Autobytel Inc. is also among the largest syndicated car-buying content networks, reaching millions of unique visitors as they are making their vehicle buying decisions. Autobytel Inc. content and technology has potential exposure to over 94 percent of the active Digital Media Universe. *

* Nielsen/NetRatings Q1 2003 Digital Media Universe Report (Autobytel Inc. is the unduplicated audience of the Autobytel, Autoweb.com, CarSmart and Autosite.com Brands. Autobytel Inc. provides content to the Yahoo!, AOL and MSN portals and various automotive manufactures’ sites. The unduplicated audience of these Brands has an active reach of over 94 percent of the home and work Digital Media Universe.)

FORWARD-LOOKING STATEMENT DISCLAIMER

The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. Autobytel undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements are changes in general economic conditions, the economic impact of terrorist attacks or military actions, increased dealer attrition, pressure on dealer fees, increased or unexpected competition, the failure to realize anticipated synergies from AVV, costs related to the acquisition of AVV, failure to retain key employees at AVV, difficulties in successfully integrating the businesses and technologies of AVV and Autobytel, that actual costs and expenses exceed the charges taken by the company, changes in laws and regulations and other matters disclosed in Autobytel’s filings with the Securities and Exchange Commission. Investors are strongly encouraged to review our annual report on Form 10-K for the year ended December 31, 2002, and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of our stock.

Contact:

Investor Relations

Hoshi Printer, Executive Vice President and Chief Financial Officer, Autobytel Inc.,

949.225.4553 (hoship@autobytel.com)

Media Relations

Melanie Webber, Vice President, Corporate Communications, Autobytel Inc.,

949.862.3023 (melaniew@autobytel.com)

Autobytel Inc.

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except share and per share data)

ASSETS
	June 30,			March 31,			December 31,
	2003			2003			2002
	(unaudited)			(unaudited)
Current assets:
Cash and cash equivalents	$	51,733		$	28,828		$	27,571
Accounts receivable, net of allowance for doubtful accounts and customer credits of $4,334, $4,487 and $4,214, respectively		8,251			6,953			6,757
Prepaid expenses and other current assets		1,984			2,402			3,495
Total current assets		61,968			38,183			37,823
Property and equipment, net		2,021			1,781			2,088
Capitalized software, net		1,778			1,835			2,105
Investment in unconsolidated subsidiary		4,812			4,798			4,745
Goodwill		16,839			8,367			8,367
Other assets		274			85			96
Total assets	$	87,692		$	55,049		$	55,224
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,115		$	3,904		$	3,529
Accrued expenses		4,387			3,354			4,795
Deferred revenues		3,641			3,528			3,575
Customer deposits		—			69			76
Accrued restructuring—current		177			187			223
Capital lease obligations—current		99			—			—
Other current liabilities		397			331			349
Total current liabilities		12,816			11,373			12,547
Accrued restructuring—non-current		175			223			255
Capital lease obligations—non-current		50			—			—
Total liabilities		13,041			11,596			12,802
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 11,445,187 shares authorized		—			—			—
Common stock, $0.001 par value; 200,000,000 shares authorized; 37,015,094, 31,267,612 and 31,195,681 shares issued and outstanding, respectively		37			31			31
Additional paid-in capital		233,793			203,759			203,623
Accumulated other comprehensive loss		23			(13	)		(40	)
Accumulated deficit		(159,202	)		(160,324	)		(161,192	)
Total stockholders’ equity		74,651			43,453			42,422
Total liabilities and stockholders’ equity	$	87,692		$	55,049		$	55,224

Autobytel Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollar amounts in thousands, except share and per share data)

(unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2003		2002			2003		2002
Revenues
Program fees	$	13,902	$	15,441		$	27,020	$	30,853
Enterprise sales		3,479		2,743			6,834		4,727
Advertising		3,024		1,639			5,863		3,396
Other products and services		1,316		1,008			2,257		2,588
Total revenues		21,721		20,831			41,974		41,564
Operating expenses:
Sales and marketing		13,109		13,236			25,967		25,496
Product and technology development		4,454		5,723			8,316		11,476
General and administrative		3,106		2,404			5,891		5,461
Autobytel.Europe restructuring and impairment charges		—		—			—		15,015
Domestic restructuring and other charges (benefits)		—		(58	)		—		(58	)
Total operating expenses		20,669		21,305			40,174		57,390
Income (loss) from operations		1,052		(474	)		1,800		(15,826	)
Loss on recapitalization of Autobytel.Europe		—		—			—		(4,168	)
Interest income		61		113			130		504
Foreign currency exchange loss		—		(13	)		—		(12	)
Income (loss) in equity investees		14		(232	)		67		(432	)
Income (loss) before minority interest and income taxes		1,127		(606	)		1,997		(19,934	)
Minority interest		—		—			—		866
Income (loss) before income taxes		1,127		(606	)		1,997		(19,068	)
Provision for income taxes		5		1			7		6
Net income (loss)	$	1,122	$	(607	)	$	1,990	$	(19,074	)
Net income (loss) per share:
Basic	$	0.04	$	(0.02	)	$	0.06	$	(0.61	)
Diluted	$	0.03	$	(0.02	)	$	0.06	$	(0.61	)
Shares used in computing net income (loss) per share
Basic		31,814,364		31,137,392			31,525,905		31,103,469
Diluted		33,950,507		31,137,392			33,138,530		31,103,469
Comprehensive income (loss):
Net income (loss)	$	1,122	$	(607	)	$	1,990	$	(19,074	)
Translation adjustment		36		—			63		—
Comprehensive income (loss)	$	1,158	$	(607	)	$	2,053	$	(19,074	)

7

Autobytel Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands, except share and per share data)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2003			2002			2003			2002
Cash flows from operating activities:
Net income (loss)	$	1,122		$	(607	)	$	1,990		$	(19,074	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Non-cash charges:
Depreciation and amortization		620			948			1,228			1,849
Provision for bad debt		72			3,583			314			4,329
Loss on disposal of property and equipment		—			(12	)		—			(11	)
Stock based compensation		51			—			51			20
Autobytel.Europe restructuring and impairment		—			—			—			15,015
Loss on recapitalization of Autobytel.Europe		—			—			—			4,168
(Income) loss in equity investees		(14	)		432			(67	)		432
Minority interest		—			—			—			(866	)
Changes in assets and liabilities:
Accounts receivable		(557	)		(4,638	)		(995	)		(5,764	)
Prepaid expenses and other current assets		443			(740	)		1,536			368
Other assets		12			58			23			58
Accounts payable		74			(1,858	)		449			(4,397	)
Accrued expenses		419			(205	)		(1,022	)		(3,765	)
Accrued restructuring—current		(10	)		(150	)		(46	)		(181	)
Deferred revenues		113			(223	)		66			(297	)
Customer deposits		(69	)		4			(76	)		(6	)
Other current liabilities		42			37			24			95
Accrued restructuring—non current		(48	)		366			(80	)		366
Net cash provided by (used in) operating activities		2,270			(3,005	)		3,395			(7,661	)
Cash flows from investing activities:
Deconsolidation of Autobytel.Europe		—			—			—			(28,163	)
Acquisition of business, net of cash acquired		(4,952	)		—			(4,952	)		—
Decrease in restricted cash		—			—			28			—
Investment in foreign entities		—			(400	)		—			(400	)
Purchases of property and equipment		(114	)		(297	)		(145	)		(723	)
Proceeds from sale of property and equipment		—			153			—			153
Capitalized software costs		—			(426	)		—			(1,329	)
Net cash used in investing activities		(5,066	)		(970	)		(5,069	)		(30,462	)
Cash flows from financing activities:
Capital lease payments		(8	)		—			(8	)		—
Net proceeds from sale of common stock		25,673			58			25,809			218
Net cash provided by financing activities		25,665			58			25,801			218
Effect of exchange rates on cash		36			29			63			(488	)
Net increase (decrease) in cash and cash equivalents		22,905			(3,888	)		24,190			(38,393	)
Cash and cash equivalents, beginning of period		28,828			27,332			27,543			61,837
Cash and cash equivalents, end of period	$	51,733		$	23,444		$	51,733		$	23,444
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	$	5		$	1		$	7		$	6
Cash paid during the period for interest	$	2		$	—		$	2		$	—

Autobytel Inc.

STATEMENT OF SUPPLEMENTAL FINANCIAL INFORMATION

(Amounts in thousands, except share and per share data)

(unaudited)

	Three Months Ended
	June 30,						March 31, 2003
	2003			2002
Reconciliation of net income (loss) to EBITDA:
Net income (loss)	$	1,122		$	(607	)	$	868
Depreciation and amortization		620			949			608
Interest income		(61	)		(113	)		(69	)
Taxes		5			1			2
EBITDA	$	1,686		$	230		$	1,409
EBITDA per share:
Diluted	$	0.05		$	0.01		$	0.04

	Three Months Ended June 30, 2003							Three Months Ended June 30, 2002
			Depreciation								Depreciation
	As		and			As		As			and			As
	Reported		Amortization			Adjusted		Reported			Amortization			Adjusted
Operating expenses:
Sales and marketing	$	13,109	$	(20	)	$	13,089	$	13,236		$	(38	)	$	13,198
Product and technology development		4,454		(570	)		3,884		5,723			(868	)		4,855
General and administrative		3,106		(30	)		3,076		2,404			(43	)		2,361
Domestic restructuring and other benefits		—		—			—		(58	)		—			(58	)
Total operating expenses	$	20,669	$	(620	)	$	20,049	$	21,305		$	(949	)	$	20,356