Exhibit 99.1

AUTOBYTEL REPORTS RESULTS FOR SECOND QUARTER 2004

—Revenues increase 45% year over year to a record $31.5 million

—EBITDA increases 31% year over year to $2.2 million

IRVINE, CA – July 22, 2004 – Leading Internet automotive marketing services company Autobytel Inc. (Nasdaq: ABTL) today announced financial results for the second quarter ended June 30, 2004.

Highlights for the quarter:

• Completed two acquisitions in early April – iDriveonline, Inc. and Stoneage Corporation (Car.com)

• Revenues at a record $31.5 million, a 45% increase year over year, and a 27% sequential growth

• Net income of $1.3 million, a 13% increase year over year, or $0.03 per diluted share

• EBITDA of $2.2 million, a 31% increase year over year, or $0.05 per diluted share

• Integration costs of $1.0 million, amortization of intangibles at $0.4 million

• Domestic cash generation of $2.6 million, excluding cash used for acquisitions

• Domestic cash balance of $46.0 million

• Total Purchase Request volume at 1.2 million, a 45% sequential increase

• Dealer closing ratio increases to a record 18.5%

• Advertising revenue increases 10% sequentially; CPM increased to $40

“We are pleased with our accomplishments during the quarter,” said Jeffrey Schwartz, president and CEO of Autobytel Inc. “We completed two acquisitions, grew the business 45%, saw improvements in pricing and margin, and finished the quarter with a record closing ratio. We remain on track to achieve our financial objectives for the year.”

Revenues for the second quarter ended June 30, 2004 totaled $31.5 million, a 27% sequential increase over revenues of $24.8 million for the first quarter ended March 31, 2004, and a 45% increase over revenues of $21.7 million for the second quarter ended June 30, 2003.

In line with prior guidance, Autobytel reported GAAP net income for the second quarter ended June 30, 2004 of $1.3 million, or $0.03 per diluted share, versus $2.1 million, or $0.05 per diluted share, reported for the first quarter ended March 31, 2004. The net income of $1.3 million in the second quarter represents a 13% increase over net income of $1.1 million for the second quarter ended June 30, 2003.

In line with prior guidance, GAAP results for the second quarter of 2004 include integration and amortization expenses of $1.0 million and $0.4 million, respectively.

For the quarter ended June 30, 2004, Autobytel reported EBITDA of $2.2 million, or $0.05 per diluted share, versus $2.6 million, or $0.06 per diluted share for the first quarter ended March 31, 2004. This compares to EBITDA of $1.7 million for the second quarter ended June 30, 2003, a 31% increase year over year. Results for the second quarter of 2004 include integration expenses of $1.0 million.

The Company generated $2.6 million in domestic cash, excluding $20.6 million used during the quarter for acquisitions. The Company’s cash balance was $54.0 million, of which $46.2 million was for domestic operations, including long-term marketable securities of $15.0 million.

Highlights for the Second Quarter

Revenues: Second quarter revenues were $31.5 million, of which $21.5 million was related to Lead Fees; $3.4 million was related to Advertising; $5.3 million was related to CRM Services, and $1.3 million was related to Data, Applications & Other.

Operating Expenses: Total operating expenses in the second quarter, including depreciation and amortization, were $30.4 million. Sales and marketing expenses totaled $18.8 million, product development and technology costs totaled $6.4 million, and general and administrative costs totaled $5.2 million.

Purchase Requests: The Company delivered approximately 1.2 million Purchase Requests during the second quarter of 2004, including 139,000 Finance Requests, a 45% sequential increase, compared to 860,000 Purchase Requests delivered in the first quarter of 2004.

Dealer Count: The Company added approximately 1,400 retail dealer relationships to its core business in the second quarter, including those added through the acquisition of Stoneage Corporation. This marks the fourth consecutive quarter of net dealer additions in the Company’s core business.

The Company added approximately 400 dealer relationships to its CRM services business, including those added through the acquisition of iDriveonline. The Company recently announced CRM accounts with Mitsubishi and Hyundai.

The Company reported approximately 35,800 dealer relationships. Included in this number are about 30,400 relationships in the Lead Fees category and about 5,400 relationships in the CRM Services category.

Quality Initiatives: Closing ratios for Autobytel’s retail dealers, excluding Car.com, increased to 18.5%, representing continued improvement from the first quarter 2004 closing ratio of 17%.

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Capital Expenditures: Total capital expenditures in the second quarter were $0.6 million compared to $0.4 million in the first quarter ended March 31, 2004. The increased expenditures reflect the spending on the integration of the acquisitions. The Company expects additional capital expenditures of approximately $1.4 million for the second half of 2004.

Depreciation and Amortization: Second quarter expenses were $1.1 million compared to $0.7 million in the first quarter ended March 31, 2004. The $1.1 million for depreciation and amortization consisted of $0.4 million for depreciation of fixed assets, $0.3 million for amortization of capitalized software, and $0.4 million for amortization of intangible assets associated with acquisitions. The Company expects this cost to increase to $1.3 million per quarter for the balance of 2004.

Headcount: The Company’s headcount increased to 402, primarily due to the acquisition of iDriveonline and Stoneage. This compares to headcount of 328 as of March 31, 2004. The headcount from the acquisitions was reduced by about 40% during the quarter.

Autobytel.Europe: In accordance with FIN 46R, the Company consolidated Autobytel.Europe in the Company’s financial statements. In the second quarter, Autobytel.Europe’s cash balance decreased by $2.2 million, primarily for payments to licensees under agreements in connection with the restructuring in March 2002. Exhibit 1 shows the balance sheet with the amounts attributable to Autobytel.Europe.

Share Count: The Company estimates the fully diluted share count for the fourth quarter 2004 to be at 46.9 million shares and the fully diluted share count for fiscal year 2005 to be at 47.6 million shares.

Acquisitions and Integration: Commenting on the progress of the iDriveonline and Stoneage integrations, Schwartz noted: “We are making substantial progress. Integration of all finance, accounting, and sales systems and structures is complete and work on bringing together the IT platforms is steadily advancing. By accelerating the integration work, we have not increased expenses, only moved them forward. This will allow us to more quickly capture the financial benefits and synergies of the transactions.”

Business Outlook: On a going-forward basis, the Company will use EBITDA as a supplement to its financial statements, which are presented in accordance with GAAP. Given the Company’s current business strategy, the Company believes that EBITDA will assist investors in their understanding of Autobytel’s operations, cash generation, and resources available for strategic opportunities, including reinvestment in the business and acquisitions.

The Company reiterates its previous guidance for 2004 of revenues between $120 million and $125 million and GAAP net income of $11 million, or $0.25 per diluted share. The Company estimates EBITDA for 2004 of approximately $15 million, or $0.33 per diluted share.

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For 2005, the Company maintains its guidance of $150 million to $160 million in revenues, and $25 million of PBT (Profit Before Taxes), which equates to approximately $30 million in EBITDA.

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 shown at Exhibit 2.

Conference Call

In conjunction with Autobytel Inc.’s second quarter 2004 earnings release, there will be a conference call broadcast live over the Internet today, July 22, 2004, at 4:30 PM EDT (1:30 PM PDT). The Webcast will be archived within 2 hours of the end of the call until the next quarter’s earnings announcement. The link to the Webcast conference is as follows:

http://www.irconnect.com/abtl/conf/2q2004.html

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, data and CRM (customer relationship management) products and programs. The Company owns and operates the automotive websites Autobytel.com, Autoweb.com, Car.com, Carsmart.com, and AutoSite.com, as well as AIC (Automotive Information Center), a trusted industry source of automotive marketing data and technology for over 20 years. Autobytel is also a leader in dealership lead management and CRM solutions and owns and operates AVV, Inc., a top provider of dealership CRM and sales management products, and Retention Performance Marketing, Inc. (RPM^®), which powers dealerships with cutting-edge customer loyalty and retention marketing programs. 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 and was the most visited new car buying and research destination in 2003, reaching millions of car shoppers as they made their vehicle buying decisions. Autobytel’s car-selling sites and lead management products are used by more of the nation’s top-100 e-dealers than any other program.

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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 acquired entities, costs related to acquisitions, failure to retain key employees at acquired entities, difficulties in successfully integrating the businesses and technologies of acquired entities and Autobytel, that actual costs and expenses exceed the expectations of 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, 2003, 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)

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Autobytel Inc.

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except share data)

	June 30, 2004			March 31, 2004			December 31, 2003
	(unaudited)			(unaudited)
ASSETS
Current assets:
Domestic cash and cash equivalents	$	31,240		$	49,270		$	51,643
International cash and cash equivalents		8,225			10,425			—
Short-term investments		—			—			3,991
Accounts receivable, net of allowance for bad debts and customer credits of $850, $2,117 and $1,764, respectively		17,213			10,597			10,889
Prepaid expenses and other current assets		2,677			1,146			833
Total current assets		59,355			71,438			67,356
Long-term investments		15,000			15,000			6,000
Property and equipment, net		3,141			2,123			2,138
Capitalized software, net		484			754			1,024
Investment in equity investee		827			824			2,810
Goodwill		69,477			16,830			16,830
Intangible assets, net		5,168			270			315
Other assets		121			554			155
Total assets	$	153,573		$	107,793		$	96,628
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,906		$	4,255		$	4,063
Accrued expenses		6,143			3,964			5,034
Deferred revenues		3,709			3,814			4,022
Accrued domestic restructuring		168			212			258
Accrued international licensee liabilities		—			1,541			—
Other current liabilities		587			405			441
Total current liabilities		17,513			14,191			13,818
Common stock due to former Stoneage shareholders		685			—			—
Total liabilities		18,198			14,191			13,818
Minority interest		4,594			4,623			—
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; 41,642,176, 38,570,537 and 37,786,767 shares issued and outstanding, respectively		42			39			38
Additional paid-in capital		279,584			238,962			236,544
Accumulated other comprehensive income		1,597			1,685			—
Accumulated deficit		(150,442	)		(151,707	)		(153,772	)
Total stockholders’ equity		130,781			88,979			82,810
Total liabilities and stockholders’ equity	$	153,573		$	107,793		$	96,628

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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,
	2004			2003			2004			2003
Revenues:
Lead fees	$	21,478		$	15,508		$	38,325		$	30,131
Advertising		3,441			3,024			6,563			5,863
CRM services		5,312			2,068			8,775			3,520
Data, applications and other		1,284			1,121			2,609			2,460
Total revenues		31,515			21,721			56,272			41,974
Operating expenses:
Sales and marketing		18,773			13,109			33,582			25,967
Product and technology development		6,431			4,454			11,519			8,316
General and administrative		5,172			3,106			8,101			5,891
Total operating expenses		30,376			20,669			53,202			40,174
Income from operations		1,139			1,052			3,070			1,800
Interest income		219			61			405			130
Income (loss) in equity investee		18			14			(35	)		67
Foreign currency exchange gain		20			—			20			—
Other income		—			—			1			—
Income before minority interest and income taxes		1,396			1,127			3,461			1,997
Minority interest		(62	)		—			(62	)		—
Income before income taxes		1,334			1,127			3,399			1,997
Provision for income taxes		(69	)		(5	)		(69	)		(7	)
Net income	$	1,265		$	1,122		$	3,330		$	1,990
Net income per share:
Basic	$	0.03		$	0.04		$	0.08		$	0.06
Diluted	$	0.03		$	0.03		$	0.08		$	0.06
Shares used in computing net income per share:
Basic		41,123,593			31,814,364			39,733,775			31,525,905
Diluted		44,695,148			33,950,507			43,643,296			33,138,530
EBITDA	$	2,215		$	1,686		$	4,781		$	3,095
EBITDA per share:
Basic	$	0.05		$	0.05		$	0.12		$	0.10
Diluted	$	0.05		$	0.05		$	0.11		$	0.09

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Autobytel Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2004			2003			2004			2003
Cash flows from operating activities:
Net income	$	1,265		$	1,122		$	3,330		$	1,990
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash charges:
Depreciation and amortization		1,100			620			1,788			1,228
Provision for bad debt		(317	)		72			(240	)		314
Customer credits		551			443			584			1,294
Loss on disposal of property and equipment		20			—			20			—
Stock based compensation		—			51			—			51
(Income) loss in equity investee		(18	)		(14	)		35			(67	)
Minority interest		62			—			62			—
Changes in assets and liabilities:
Accounts receivable		(1,725	)		(1,000	)		(1,457	)		(2,289	)
Prepaid expenses and other current assets		(438	)		443			(722	)		1,536
Other assets		412			12			13			23
Accounts payable		995			74			1,082			449
Accrued expenses		83			419			(1,639	)		(1,022	)
Deferred revenues		(386	)		113			(594	)		66
Customer deposits		—			(69	)		—			(76	)
Accrued domestic restructuring		(44	)		(58	)		(90	)		(126	)
Accrued international licensee liabilities		(1,541	)		—			(1,541	)		—
Other current liabilities		98			42			60			24
Net cash provided by operating activities		117			2,270			691			3,395
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		(20,630	)		(4,952	)		(20,630	)		(4,952	)
Maturities of short-term investments		—			—			3,991			—
Purchases of long-term investments		—			—			(9,000	)		—
Consolidation of Autobytel.Europe cash balance		—			—			10,425			—
Purchases of property and equipment		(566	)		(114	)		(923	)		(145	)
Net cash used in investing activities		(21,196	)		(5,066	)		(16,137	)		(5,097	)
Cash flows from financing activities:
Payments of capital lease obligations		(225	)		(8	)		(225	)		(8	)
Net proceeds from sale of common stock		1,238			25,673			3,657			25,809
Net cash provided by financing activities		1,013			25,665			3,432			25,801
Effect of exchange rates on cash		(164	)		36			(164	)		63
Net increase (decrease) in cash and cash equivalents		(20,230	)		22,905			(12,178	)		24,162
Cash and cash equivalents, beginning of period		59,695			28,828			51,643			27,571
Cash and cash equivalents, end of period	$	39,465		$	51,733		$	39,465		$	51,733
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	$	69		$	5		$	69		$	7
Cash paid (refunded) during the period for interest	$	—		$	2		$	(1	)	$	2

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Exhibit 1

Autobytel Inc.

CONSOLIDATING BALANCE SHEET

As of June 30, 2004

(Dollar amounts in thousands, except share data)

(unaudited)

	Autobytel			Autobytel. Europe			Elimination			Consolidated Autobytel
ASSETS
Current assets:
Domestic cash and cash equivalents	$	31,240		$	—		$	—		$	31,240
International cash and cash equivalents		—			8,225			—			8,225
Accounts receivable, net of allowance for bad debts and customer credits of $850		17,051			162			—			17,213
Prepaid expenses and other current assets		2,671			6			—			2,677
Total current assets		50,962			8,393			—			59,355
Long-term investments		15,000			—			—			15,000
Property and equipment, net		3,140			1			—			3,141
Capitalized software, net		484			—			—			484
Investment in equity investee		2,817			827			(2,817	)		827
Goodwill		69,477			—			—			69,477
Intangible assets, net		5,168			—			—			5,168
Other assets		121			—			—			121
Total assets	$	147,169		$	9,221		$	(2,817	)	$	153,573
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,833		$	73		$	—		$	6,906
Accrued expenses		5,993			150			—			6,143
Deferred revenues		3,697			12			—			3,709
Accrued domestic restructuring		168			—			—			168
Other current liabilities		609			(22	)		—			587
Total current liabilities		17,300			213			—			17,513
Common stock due to former Stoneage shareholders		685			—			—			685
Total liabilities		17,985			213			—			18,198
Minority interest		—			—			4,594			4,594
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; 41,642,176 shares issued andoutstanding		42			18			(18	)		42
Additional paid-in capital		279,584			20,338			(20,338	)		279,584
Accumulated other comprehensive income		—			3,566			(1,969	)		1,597
Accumulated deficit		(150,442	)		(14,914	)		14,914			(150,442	)
Total stockholders’ equity		129,184			9,008			(7,411	)		130,781
Total liabilities and stockholders’ equity	$	147,169		$	9,221		$	(2,817	)	$	153,573

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Exhibit 2

Autobytel Inc.

Reconciliation of Net Income to EBITDA

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

(unaudited)

	Three Months Ended March 31,						Three Months Ended June 30,						Six Months Ended June 30,
	2004			2003			2004			2003			2004			2003
Net Income	$	2,065		$	868		$	1,265		$	1,122		$	3,330		$	1,990
Interest income		(187	)		(69	)		(219	)		(61	)		(406	)		(130	)
Provision for income taxes		—			2			69			5			69			7
Depreciation		358			338			415			329			773			667
Amortization of capital leases		15			—			13			5			28			5
Amortization of software capitalization		270			270			270			271			540			541
Amortization of intangible assets		45			—			402			15			447			15
EBITDA	$	2,566		$	1,409		$	2,215		$	1,686		$	4,781		$	3,095
EBITDA per share:
Basic	$	0.07		$	0.05		$	0.05		$	0.05		$	0.12		$	0.10
Diluted	$	0.06		$	0.04		$	0.05		$	0.05		$	0.11		$	0.09
Shares used in computing net income per share:
Basic		38,343,958			31,234,243			41,123,593			31,814,364			39,733,775			31,525,905
Diluted		42,583,103			32,167,910			44,695,148			33,950,507			43,643,296			33,138,530

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