Autobytel (ABTL) to Eliminate 35% of Workforce; Will Save $10M Annually; RBC to Help Evaluate Strategic Alternatives

September 26, 2008 8:13 AM EDT

Autobytel Inc. (Nasdaq: ABTL) today announced it has eliminated an additional 75 positions, or approximately 35% percent of its workforce. These reductions reinforce management's previously announced commitment to improve cash flow and attain profitability.

Autobytel anticipates saving approximately $10 million annually as the result of the workforce reduction and the elimination of certain other expenses. The company expects to record a charge related to severance and other employee-related costs totaling approximately $2.2 million over Q3 and Q4 of '08.

Concurrently, Autobytel announced that it has retained investment banking firm RBC Capital Markets Corporation as its financial advisor to assist the company in exploring and evaluating strategic alternatives to maximize shareholder value.

The company said such alternatives are designed to strengthen Autobytel's marketplace position and could include the possible sale of the company or certain of its assets, acquisitions, or strategic partnerships. The company also said there can be no assurances that the process will result in any specific transaction or transactions and that it does not intend to disclose developments regarding the process unless and until its board of directors approves a definitive transaction.

Autobytel, Inc., together with its subsidiaries, operates as an automotive media and marketing services company in the United States.

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