----

----

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|                     |   |                                 |
|--------------------------|--------|--------------------------------------|
| Delaware                 |   | 33-0711569                           |
| (State of Incorporation) |   | (I.R.S. Employer Identification No.) |

|                                     |   |                                      |
|------------------------------------------|--------|-------------------------------------------|
| Title of each class                      |   | Name of each exchange on which registered |
| Common Stock, par value $0.001 per share |   | The NASDAQ Global Market                  |
| Preferred Stock Purchase Right           |   | The NASDAQ Global Market                  |

----

----

ANNUAL REPORT ON FORM 10-K

|         |                                                                                                              |                   |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------|
|         |                                                                                                              | PageNumber   |
| Part I       |
|         |                                                                                                              |                   |
| Item 1  | Business                                                                                                          | 4                      |
| Item 1A | Risk Factors                                                                                                      | 12                     |
| Item 1B      | Unresolved Staff Comments                                                                                         | 21                     |
| Item 2  | Properties                                                                                                        | 21                     |
| Item 3  | Legal Proceedings                                                                                                 | 21                     |
| Item 4  | (Removed and Reserved)                                                                                            | 21                     |
|         |
| Part II      |
|         |                                                                                                              |                   |
| Item 5  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases ofEquity Securities | 22                     |
| Item 6  | Selected Financial Data                                                                                           | 24                     |
| Item 7  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                       | 24                     |
| Item 7A | Quantitative and Qualitative Disclosures About Market Risk                                                        | 32                     |
| Item 8  | Financial Statements and Supplementary Data                                                                       | 32                     |
| Item 9  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                              | 32                     |
| Item 9A | Controls and Procedures                                                                                           | 32                     |
| Item 9B | Other Information                                                                                                 | 33                     |
|         |
| Part III     |
|         |                                                                                                              | 34                     |
| Item 10 | Directors, Executive Officers and Corporate Governance                                                            | 34                     |
| Item 11 | Executive Compensation                                                                                            | 34                     |
| Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                    | 34                     |
| Item 13 | Certain Relationships and Related Transactions, and Director Independence                                         | 34                     |
| Item 14 | Principal Accountant Fees and Services                                                                            | 34                     |
|         |
| Part IV      |
|         |                                                                                                              |                   |
| Item 15 | Exhibits and Financial Statement Schedules                                                                        | 35                     |
|         | Signatures                                                                                                        | 36                     |

----

| Item 1. | Business |
|--------------|----------|

Autobytel Inc

----

table of contents

----

|   | • | Increasing traffic acquisition activities.  We plan to increase the traffic to our Owned Websites through enhancements to our Owned Websites and effective SEO and SEM traffic acquisition activities.  Our goal is that over time, paid traffic such as SEM will be balanced by greater visitation from direct navigation and SEO, which we expect to result in increased gross profit margins. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Enhancing the quality and user experience of our websites.  We continuously make enhancements to our Owned Websites, including enhancements of the design and functionality of our Owned Websites.  These enhancements are intended to position our Owned Websites as comprehensive best in class destinations for automotive purchase research by consumers. For 2011, the most significant website enhancement planned involves the redesign of our Autobytel.com website as discussed above under the section of this Item 1 entitled “Significant Business Developments—Website Enhancements.” |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Increasing the conversion rate of visitors to Purchase Requests on our Owned Websites.  Through increased SEO and SEM activities and significant content, tools, and user interface enhancements to our websites, we believe we will be able to increase the number of website visits and improve website “engagement,” and thereby |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | increase the conversion of page views into Purchase Requests.  We believe that an increased conversion rate of page views into Purchase Requests could result in higher revenue per visitor. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase the Quality of our Purchase Requests.  High quality Purchase Requests are those Purchase Requests that result in high transaction (i.e., purchase) closing ratios for our Dealer customers.  As of December 31, 2010, approximately 70% of our Purchase Requests are Internally-Generated Purchase Requests.  Internally-Generated Purchase Requests are generally higher quality than Other Purchase Requests and increase the overall quality of our Purchase Request portfolio.  Other Purchase Requests are of varying quality. Therefore, we plan to continue to develop and maintain strong relationships only with suppliers of Other Purchase Requests that consistently provide high quality Purchase Requests. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase Purchase Request Sales to Our Dealer Customers. Sales of Purchase Requests to our Dealer network constitute a significant source of our revenues.  Our goal is to increase the number of Purchase Requests sold to our retail Dealer customers by: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | increasing the quality of the Purchase Requests sold to our Dealers, |
|---------------|----------------------------------------------------------------------|

| o   | increasing the number of Purchase Requests sold to each of our Dealers, |
|---------------|-------------------------------------------------------------------------|

| o   | increasing the number of Dealers in our Dealer network, |
|---------------|---------------------------------------------------------|

| o   | providing customizable Purchase Request programs to meet our Dealers’ unique marketing requirements, |
|---------------|------------------------------------------------------------------------------------------------------------|

| o   | providing additional value added marketing services that help Dealers more effectively utilize the internet to market and sell new and used vehicles, and |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | increasing overall Dealer satisfaction by improving all aspects of our services. |
|---------------|----------------------------------------------------------------------------------|

----

----

| ·   | Purchase Request Web Source – segments Purchase Request sources into five categories (‘research,’ ‘quote,’ ‘buying,’ ‘enthusiast,’ and ‘portal’) based on the type of automotive publisher from where the Purchase Request is coming. This enables Dealers to configure their mix according to their dealership resources and goals – along with the actual performance of category of source(s). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Zip Code – enables Dealers to apply different territories/zip codes to each of their models and Purchase Request sources. Dealers can make territory changes dynamically, while adjusting for return on investment based on market analysis. For example, a dealership may choose to increase the territory range for vehicles with higher closing ratios and have a smaller territory for lower grossing vehicles.  |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Make/Model – helps Dealers spend their budget more effectively by allowing them to increase the number of Purchase Requests for hard to move models or, conversely, block or restrict Purchase Requests by model for those high demand “hot” models. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

Risk Factors

| ·   | Continue to send new and used automotive Purchase Requests to Dealers that result in sufficient Dealer vehicle sales to justify our fees; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Expand the number of Dealers in our networks and increase the number of Purchase Requests delivered to Dealers; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Sustain and expand our relationships with Manufacturers; |
|--------------------|----------------------------------------------------------|

| ·   | Increase the volume of Purchase Requests that originate on our websites; |
|--------------------|--------------------------------------------------------------------------|

| ·   | Expand Purchase Request referral sales to other automotive-related markets; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | Assure continued access to a high volume of high quality Purchase Requests at acceptable prices from third party sources; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintain a high degree of customer satisfaction; |
|--------------------|--------------------------------------------------|

| ·   | Provide secure and easy to use websites with relevant and quality content for consumers; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | Increase visibility of our brand names; |
|--------------------|-----------------------------------------|

| ·   | Defend and enforce our intellectual property rights; |
|--------------------|------------------------------------------------------|

| ·   | Continue to attract, train, retain and motivate qualified personnel; and |
|--------------------|--------------------------------------------------------------------------|

| ·   | Continue to upgrade and enhance our technologies to accommodate expanded product and service offerings and increased consumer traffic. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | North American vehicle sales stabilized in 2010 from 2009 levels, but U.S. light vehicle sales remain at lower levels compared to years prior to 2008 |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Unemployment levels remain a risk through 2011, |
|--------------------|-------------------------------------------------|

| ·   | Fuel prices have been rising and may continue to rise in 2011. |
|--------------------|----------------------------------------------------------------|

----

----

----

----

----

----

| ·   | Actual or anticipated variations in our quarterly operating results; |
|--------------------|----------------------------------------------------------------------|

| ·   | Historical and anticipated operating metrics such as the number of participating Dealers, volume of Purchase Request deliveries to Dealers, the number of visitors to our Owned Websites and the frequency with which they interact with our Owned Websites; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Announcements of new product or service offerings; |
|--------------------|----------------------------------------------------|

| ·   | Technological innovations; |
|--------------------|----------------------------|

| ·   | Low trading volumes; |
|--------------------|----------------------|

| ·   | Concentration of holdings in our common stock resulting in low public float for our shares; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Limited analyst coverage of the Company; |
|--------------------|------------------------------------------|

| ·   | Competitive developments, including actions by Manufacturers; |
|--------------------|---------------------------------------------------------------|

| ·   | Changes in financial estimates by securities analysts or our failure to meet such estimates; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Conditions and trends in the internet, electronic commerce and automotive industries; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | Our ability to comply with the conditions to continued listing of our stock on The NASDAQ Global Market; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Adoption of new accounting standards affecting the technology or automotive industry, and |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | General market or economic conditions and other factors. |
|--------------------|----------------------------------------------------------|

----

----

----

| Item 1B. | Unresolved Staff Comments |
|---------------|---------------------------|

Not applicable.

| Item 2. | Properties |
|--------------|------------|

Our 

| Item 3. | Legal Proceedings |
|--------------|-------------------|

See Note 

| Item 4. | (Removed and Reserved) |
|--------------|------------------------|

----

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|--------------|--------------------------------------------------------------------------------------------------------------------|

Our

|           |   |   |   |   |   |   |
|----------------|--------|--------|--------|--------|--------|--------|
|  Year     |   | High   |   |   | Low    |   |
| 2009           |   |   |   |   |   |   |
| First Quarter  |   | $      | 0.57   |   |   | $      | 0.23 |   |
| Second Quarter |   | $      | 0.54   |   |   | $      | 0.25 |   |
| Third Quarter  |   | $      | 0.70   |   |   | $      | 0.41 |   |
| Fourth Quarter |   | $      | 1.10   |   |   | $      | 0.59 |   |
| 2010           |   |   |   |   |   |   |   |   |
| First Quarter  |   | $      | 1.14   |   |   | $      | 0.90 |   |
| Second Quarter |   | $      | 1.28   |   |   | $      | 0.79 |   |
| Third Quarter  |   | $      | 1.21   |   |   | $      | 0.80 |   |
| Fourth Quarter |   | $      | 0.89   |   |   | $      | 0.74 |   |

----

|                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                   |   | Cumulative Total Return |   |
|                                   |   |                    | 12/05  |   |   |   | 12/06  |   |   |   | 12/07  |   |   |   | 12/08  |   |   |   | 12/09 |   |   |   | 12/10 |   |
| Autobytel                              |   | $                       | 100.00 |   |   | $      | 70.85  |   |   | $      | 55.67  |   |   | $      | 9.11   |   |   | $      | 20.24 |   |   | $ | 17.41 |   |
| NASDAQ Composite                       |   |                    | 100.00 |   |   |   | 111.16 |   |   |   | 124.64 |   |   |   | 73.80  |   |   |   | 107.07 |   |   |   | 125.99 |   |
| S&P Automobile Manufacturers       |   |                    | 100.00 |   |   |   | 128.04 |   |   |   | 110.69 |   |   |   | 26.40  |   |   |   | 86.97 |   |   |   | 146.02 |   |
| S&P Smallcap 600 Automotive Retail |   |                    | 100.00 |   |   |   | 124.66 |   |   |   | 78.79  |   |   |   | 39.11  |   |   |   | 71.47 |   |   |   | 106.20 |   |

----

Selected Financial Data

|   | Not applicable. |
|--------|-----------------|

| Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|--------------|---------------------------------------------------------------------------------------------|

You

| ·   | General economic conditions, specifically including the adverse effect of high unemployment on the number of vehicle purchasers and the lack of available consumer credit to finance vehicle purchases have affected the automotive industry, which is currently enduring what is considered to be the most challenging environment of the past several decades: |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | North American vehicle sales stabilized in 2010 from 2009 levels, but U.S. light vehicle sales remain at lower levels compared to years prior to 2008; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Unemployment levels remain a risk through 2011; and |
|--------------------|-----------------------------------------------------|

| ·   | Fuel prices have been rising and may continue to rise in 2011. |
|--------------------|----------------------------------------------------------------|

| ·   | The market for Purchase Requests, including: |
|--------------------|----------------------------------------------|

| ·   | The effects of competition and Purchase Request sourcing (i.e., Purchase Requests from our Owned Websites versus Other Purchase Requests acquired from third parties) on our supply and acquisition costs of quality Purchase Requests and the resulting effects on sales, pricing and margins for our services and products, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increases or decreases in the number of Dealers in our Dealer base. |
|--------------------|---------------------------------------------------------------------|

| ·   | The market for advertising services, including: |
|--------------------|-------------------------------------------------|

| ·   | Continued volatility in spending by Manufacturers and others in marketing allocations, |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | The amount of visits (traffic) to our Owned Websites, |
|--------------------|-------------------------------------------------------|

| ·   | The cost of acquiring traffic to our Owned Websites, and |
|--------------------|----------------------------------------------------------|

| ·   | The rates attainable from our advertisers. |
|--------------------|--------------------------------------------|

----

|                                       |   |                                    |    |   |   |   |
|--------------------------------------------|--------|-----------------------------------------|---------|--------|--------|--------|
|                                       |   | Years Ended December 31, |    |
|                                       |   | 2010                                    |    |   | 2009   |   |
| Revenues:                                  |   |                                    |    |   |   |   |
| Purchase Requests                          |   |                                    | 92      | %      |   |   | 87 | % |
| Advertising                                |   |                                    | 8       |   |   |   | 13 |   |
| Other                                      |   |                                    | — |   |   |   | — |   |
|     Total net revenues |   |                                    | 100     |   |   |   | 100 |   |
|                                       |   |                                    |    |   |   |   |   |   |
| Cost of revenues                           |   |                                    | 62      |   |   |   | 64 |   |
|                                       |   |                                    |    |   |   |   |   |   |
| Gross margin                               |   |                                    | 38      |   |   |   | 36 |   |
|                                       |   |                                    |    |   |   |   |   |   |
| Operating expenses:                        |   |                                    |    |   |   |   |   |   |
| Sales and marketing                        |   |                                    | 22      |   |   |   | 19 |   |
| Technology support                         |   |                                    | 14      |   |   |   | 8 |   |
| General and administrative                 |   |                                    | 23      |   |   |   | 22 |   |
| Depreciation and amortization              |   |                                    | 2       |   |   |   | 2 |   |
| Patent litigation settlement               |   |                                    | (6      | )      |   |   | (5 | ) |
|                                       |   |                                    |    |   |   |   |   |   |
| Total operating expenses                   |   |                                    | 55      |   |   |   | 46 |   |
|                                       |   |                                    |    |   |   |   |   |   |
| Operating loss                             |   |                                    | (17     | )      |   |   | (10 | ) |
| Interest and other income                  |   |                                    | 1       |   |   |   | 2 |   |
| Income tax provision (benefit)             |   |                                    | 1       |   |   |   | (1 | ) |
|                                       |   |                                    |    |   |   |   |   |   |
| Loss from continuing operations            |   |                                    | (17     | )      |   |   | (7 | ) |
| Discontinued operations, net               |   |                                    | — |   |   |   | 2 |   |
|                                       |   |                                    |    |   |   |   |   |   |
| Net loss                                   |   |                                    | (17     | )%     |   |   | (4 | )% |

|                                                                      |   |                     |   |   |                |   |   |    |   |   |   |    |
|---------------------------------------------------------------------------|--------|--------------------------|--------|--------|---------------------|--------|--------|---------|--------|--------|--------|---------|
|                                                                      |   | Years Ended December 31, |   |   | 2010 vs. 2009Change |
|                                                                      |   | 2010                     |   |   | 2009                |   |   |  $ |   |   |   | %  |   |
|                                                                      |   | (in thousands)           |   |   |                |   |   |
| Revenues:                                                                 |   |                     |   |   |                |   |   |    |   |   |   |    |   |
| Purchase Requests                                                         |   | $                        | 47,609 |   |                | $      | 46,236 |    |   | $      | 1,373  |    |   |   | 3 | % |
| Advertising                                                               |   |                     | 3,815  |   |                |   | 6,508  |    |   |   | (2,693 | )       |   |   | (41 | ) |
| Other revenues                                                            |   |                     | 110    |   |                |   | 174    |    |   |   | (64    | )       |   |   | (37 | ) |
|                                                                      |   |                     |   |   |                |   |   |    |   |   |   |    |   |   |   |   |
| Total net revenues                                                        |   | $                        | 51,534 |   |                | $      | 52,918 |    |   | $      | (1,384 | )       |   |   | (3 | )% |
| Cost of revenues (excludes depreciation of $243 in 2010 and $304 in 2009) |   |                     | 32,032 |   |                |   | 33,986 |    |   |   | (1,954 | )       |   |   | (6 | ) |
|                                                                      |   |                     |   |   |                |   |   |    |   |   |   |    |   |   |   |   |
| Gross profit                                                              |   | $                        | 19,502 |   |                | $      | 18,932 |    |   | $      | 570    |    |   |   | 3 | % |

----

|                                                     |   |                          |   |   |                 |   |    |    |   |   |   |   |
|----------------------------------------------------------|--------|-------------------------------|--------|--------|----------------------|--------|---------|---------|--------|--------|--------|--------|
|                                                     |   | Years Ended December 31,      |   |   | 2010 vs. 2009 Change |   |
|                                                     |   | 2010                          |   |   | 2009                 |   |    |  $ |   |   |   | %      |   |
|                                                     |   | (dollar amounts in thousands) |   |   |                 |   |    |
| Operating expenses:                                      |   |                          |   |   |                 |   |    |    |   |   |   |   |   |
| Sales and marketing                                      |   |                          |   |   |                 |   |    |    |   |   |   |   |   |
| Sales and marketing                                      |   | $                             | 11,282 |   |                 | $      | 10,073  |    |   | $      | 1,209  |   |   |   | 12 | % |
| Severance included in sales and marketing                |   |                          | 301    |   |                 |   | 17      |    |   |   | 284    |   |   |   | 1671 |   |
| Total sales and marketing                                |   |                          | 11,583 |   |                 |   | 10,090  |    |   |   | 1,493  |   |   |   | 15 |   |
|                                                     |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| Technology support                                       |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| Technology support                                       |   |                          | 6,593  |   |                 |   | 4,383   |    |   |   | 2,210  |   |   |   | 50 |   |
| Severance included in technology support                 |   |                          | 362    |   |                 |   | — |    |   |   | 362    |   |   |   | — |   |
| Acquisition costs included in technology support         |   |                          | 8      |   |                 |   | — |    |   |   | 8      |   |   |   | — |   |
| Total technology support                                 |   |                          | 6,963  |   |                 |   | 4,383   |    |   |   | 2,580  |   |   |   | 59 |   |
|                                                     |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| General and administrative                               |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| General and administrative                               |   |                          | 10,490 |   |                 |   | 10,948  |    |   |   | (458   | )      |   |   | (4 | ) |
| Severance included in general and administrative         |   |                          | 599    |   |                 |   | 506     |    |   |   | 93     |   |   |   | 18 |   |
| Acquisition costs included in general and administrative |   |                          | 679    |   |                 |   | — |    |   |   | 679    |   |   |   | — |   |
| Total general and administrative                         |   |                          | 11,768 |   |                 |   | 11,454  |    |   |   | 314    |   |   |   | 3 |   |
|                                                     |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| Depreciation and amortization                            |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| Depreciation and amortization                            |   |                          | 717    |   |                 |   | 1,087   |    |   |   | (370   | )      |   |   | (34 | ) |
| Amortization related to acquired intangible assets       |   |                          | 382    |   |                 |   | — |    |   |   | 382    |   |   |   | — |   |
| Total depreciation and amortization                      |   |                          | 1,099  |   |                 |   | 1,087   |    |   |   | 12     |   |   |   | 1 |   |
|                                                     |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| Patent litigation settlement                             |   |                          | (2,939 | )      |                 |   | (2,892  | )       |   |   | (47    | )      |   |   | 2 |   |
|                                                     |   |                          |   |   |                 |   |    |    |   |   |   |   |   |   |   |   |
| Total operating expenses                                 |   | $                             | 28,474 |   |                 | $      | 24,122  |    |   | $      | 4,352  |   |   |   | 18 | % |

----

|                                                |   |                          |    |   |   |   |
|-----------------------------------------------------|--------|-------------------------------|---------|--------|--------|--------|
|                                                |   | Years Ended December 31, |    |
|                                                |   | 2010                          |    |   | 2009   |   |
|                                                |   | (in thousands)                |    |
| Net cash used in operating activities               |   | $                             | (4,346  | )      |   | $      | (4,529 | ) |
| Net cash (used in) provided by investing activities |   |                          | (12,197 | )      |   |   | 2,233 |   |
| Net cash provided by financing activities           |   |                          | 265     |   |   |   | — |   |

----

|                           |   | Years Ending December 31, |    |
|--------------------------------|--------|--------------------------------|---------|
|                           |   | (in thousands)                 |    |
|                           |   | 2011                           |    |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2015 andthereafter |   |   | Total |   |
| Operating leases (a)           |   | $                              | 745     |   |   | $ | 401 |   |   | $ | 70 |   |   | $ | — |   |   | $ | — |   |   | $ | 1,216 |   |
| Long-term debt obligations (b) |   |                           | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 5,000 |   |   |   | 5,000 |   |
|                           |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          |   | $                              | 745     |   |   | $ | 401 |   |   | $ | 70 |   |   | $ | — |   |   | $ | 5,000 |   |   | $ | 6,216 |   |
|                           |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Operating lease obligations as defined by FASB Topic, “Accounting for Leases,” and disclosed in Note 6 of the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Long-term debt obligations as defined by FASB Topic, “Debt,” and disclosed in Note 3 of the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

At December 

| Item 8. | Financial Statements and Supplementary Data |
|--------------|---------------------------------------------|

Our Consolidated 

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
|--------------|--------------------------------------------------------------------------------------|

None.

| Item 9A. | Controls and Procedures |
|---------------|-------------------------|

Disclosure Controls 

----

| Item 9B. | Other Information |
|---------------|-------------------|

o

----

| Item 10 | Directors, Executive Officers and Corporate Governance |
|--------------|--------------------------------------------------------|

The

| Item 11 | Executive Compensation |
|--------------|------------------------|

The 

| Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|--------------|------------------------------------------------------------------------------------------------|

The

| Item 13 | Certain Relationships and Related Transactions, and Director Independence |
|--------------|---------------------------------------------------------------------------|

The information 

| Item 14 | Principal Accountant Fees and Services |
|--------------|----------------------------------------|

The

----

| Item 15. | Exhibits and Financial Statement Schedules |
|---------------|--------------------------------------------|

following documents are filed as a part of this Annual Report on Form 10-K:

|   | (1) | Financial Statements: |
|--------|-----|-----------------------|

|                                                         |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|
|                                                         |   | Page   |   |
| Index                                                        |   |   | F-1    |   |
| Report of Independent Registered Public Accounting Firm      |   |   | F-2    |   |
| Consolidated Balance Sheets                                  |   |   | F-3    |   |
| Consolidated Statements of Operations and Comprehensive Loss |   |   | F-4    |   |
| Consolidated Statements of Stockholders’ Equity        |   |   | F-5    |   |
| Consolidated Statements of Cash Flows                        |   |   | F-6    |   |
| Notes to Consolidated Financial Statements                   |   |   | F-7    |   |

|   | (2) | Financial Statement Schedules: |
|--------|-----|--------------------------------|

|  Schedule II - Valuation and Qualifying Accounts |   |   |  F-29 |   |
|-------------------------------------------------------|--------|--------|------------|--------|

|   | (3) | Exhibits: |
|--------|-----|-----------|

----

|   |           |                                            |   |
|--------|----------------|-------------------------------------------------|--------|
|   | AUTOBYTEL INC. |                                            |
|   |           |                                            |   |
|   | By:            | /s/ JEFFREY H. COATS                            |   |
|   |           | Jeffrey H. Coats                                |   |
|   |           | President, Chief Executive Officer and Director |   |

| Signature             |   | Title                                             |   | Date           |
|-----------------------|--------|---------------------------------------------------|--------|----------------|
|                  |   |                                              |   |           |
| /s/ MICHAEL J. FUCHS  |   | Chairman of the Board and Director                |   | March 10, 2011 |
| Michael J. Fuchs      |   |                                              |   |           |
|                  |   |                                              |   |           |
| /s/ JEFFREY H. COATS  |   | President, Chief Executive Officer and Director   |   | March 10, 2011 |
| Jeffrey H. Coats      |   | (Principal Executive Officer)                     |   |           |
|                  |   |                                              |   |           |
| /s/ CURTIS E. DEWALT  |   | Senior Vice President and Chief Financial Officer |   | March 10, 2011 |
| Curtis E. DeWalt      |   | (Principal Financial Officer)                     |   |           |
|                  |   |                                              |   |           |
| /s/ WESLEY OZIMA      |   | Vice President and Controller                     |   | March 10, 2011 |
| Wesley Ozima          |   | (Principal Accounting Officer)                    |   |           |
|                  |   |                                              |   |           |
| /s/ MARK N. KAPLAN    |   | Director                                          |   | March 10, 2011 |
| Mark N. Kaplan        |   |                                              |   |           |
|                  |   |                                              |   |           |
| /s/ MARK R. ROSS      |   | Director                                          |   | March 10, 2011 |
| Mark R. Ross          |   |                                              |   |           |
|                  |   |                                              |   |           |
| /s/ JEFFREY M. STIBEL |   | Director                                          |   | March 10, 2011 |
| Jeffrey M. Stibel     |   |                                              |   |           |
|                  |   |                                              |   |           |
| /s/ JANET M. THOMPSON |   | Director                                          |   | March 10, 2011 |
| Janet M. Thompson     |   |                                              |   |           |
|                  |   |                                              |   |           |

----

|                                                         |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|
|                                                         |   | Page   |   |
| Report of Independent Registered Public Accounting Firm      |   |   | F-2    |   |
| Consolidated Balance Sheets                                  |   |   | F-3    |   |
| Consolidated Statements of Operations and Comprehensive Loss |   |   | F-4    |   |
| Consolidated Statements of Stockholders’ Equity        |   |   | F-5    |   |
| Consolidated Statements of Cash Flows                        |   |   | F-6    |   |
| Notes to Consolidated Financial Statements                   |   |   | F-7    |   |

----

Report 

----

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                    |   |                  |     |   |                  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|----------|--------|-----------------------|--------|
|                                                                                                                                                                    |   | December 31,2010 |     |   | December 31,2009 |   |
| Assets                                                                                                                                                                  |   |                  |     |   |                  |   |
| Current assets:                                                                                                                                                         |   |                  |     |   |                  |   |
| Cash and cash equivalents                                                                                                                                               |   | $                     | 8,819    |   |                  | $      | 25,097 |   |
| Restricted cash                                                                                                                                                         |   |                  | 400      |   |                  |   | — |   |
| Accounts receivable, net of allowances for bad debts and customer credits of $621 and $1,107 at December 31, 2010 and 2009, respectively                           |   |                  | 9,067    |   |                  |   | 8,573 |   |
| Prepaid expenses and other current assets                                                                                                                               |   |                  | 797      |   |                  |   | 594 |   |
|                                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Total current assets                                                                                                                                                    |   |                  | 19,083   |   |                  |   | 34,264 |   |
| Property and equipment, net                                                                                                                                             |   |                  | 1,733    |   |                  |   | 1,003 |   |
| Long-term strategic investment                                                                                                                                          |   |                  | 1,000    |   |                  |   | — |   |
| Intangible assets, net                                                                                                                                                  |   |                  | 4,258    |   |                  |   | — |   |
| Goodwill                                                                                                                                                                |   |                  | 11,677   |   |                  |   | — |   |
| Other assets                                                                                                                                                            |   |                  | 81       |   |                  |   | 123 |   |
|                                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Total assets                                                                                                                                                            |   | $                     | 37,832   |   |                  | $      | 35,390 |   |
|                                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                                              |   |                  |     |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Accounts payable                                                                                                                                                        |   | $                     | 3,713    |   |                  | $      | 2,539 |   |
| Accrued expenses and other current liabilities                                                                                                                          |   |                  | 4,995    |   |                  |   | 4,028 |   |
| Deferred revenues                                                                                                                                                       |   |                  | 564      |   |                  |   | 603 |   |
|                                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Total current liabilities                                                                                                                                               |   |                  | 9,272    |   |                  |   | 7,170 |   |
| Convertible note payable                                                                                                                                                |   |                  | 5,000    |   |                  |   | — |   |
| Other non-current liabilities                                                                                                                                           |   |                  | 457      |   |                  |   | 79 |   |
|                                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Total liabilities                                                                                                                                                       |   |                  | 14,729   |   |                  |   | 7,249 |   |
| Commitments and contingencies (Note 7)                                                                                                                                  |   |                  |     |   |                  |   |   |   |
| Stockholders’ equity:                                                                                                                                             |   |                  |     |   |                  |   |   |   |
| Preferred stock, $0.001 par value; 11,445,187 shares authorized; none outstanding                                                                                       |   |                  | —  |   |                  |   | — |   |
| Common stock, $0.001 par value; 200,000,000 shares authorized; 45,689,062 and 45,168,706 shares issued and outstanding at December 31, 2010 and 2009, respectively |   |                  | 46       |   |                  |   | 45 |   |
| Additional paid-in capital                                                                                                                                              |   |                  | 305,356  |   |                  |   | 301,831 |   |
| Accumulated deficit                                                                                                                                                     |   |                  | (282,299 | )      |                  |   | (273,735 | ) |
|                                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Total stockholders’ equity                                                                                                                                        |   |                  | 23,103   |   |                  |   | 28,141 |   |
|                                                                                                                                                                    |   |                  |     |   |                  |   |   |   |
| Total liabilities and stockholders’ equity                                                                                                                        |   | $                     | 37,832   |   |                  | $      | 35,390 |   |

----

CONSOLIDATED 

|                                                                      |   |                          |                     |   |   |   |
|---------------------------------------------------------------------------|--------|-------------------------------|--------------------------|--------|--------|--------|
|                                                                      |   | Years Ended December 31, |                     |
|                                                                      |   | 2010                          |                     |   | 2009   |   |
| Revenues:                                                                 |   |                          |                     |   |   |   |
| Purchase requests                                                         |   | $                             | 47,609                   |   |   | $      | 46,236 |   |
| Advertising                                                               |   |                          | 3,815                    |   |   |   | 6,508 |   |
| Other revenues                                                            |   |                          | 110                      |   |   |   | 174 |   |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Total net revenues                                                        |   |                          | 51,534                   |   |   |   | 52,918 |   |
| Cost of revenues (excludes depreciation of $243 in 2010 and $304 in 2009) |   |                          | 32,032                   |   |   |   | 33,986 |   |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Gross profit                                                              |   |                          | 19,502                   |   |   |   | 18,932 |   |
| Operating expenses:                                                       |   |                          |                     |   |   |   |   |   |
| Sales and marketing                                                       |   |                          | 11,583                   |   |   |   | 10,090 |   |
| Technology support                                                        |   |                          | 6,963                    |   |   |   | 4,383 |   |
| General and administrative                                                |   |                          | 11,768                   |   |   |   | 11,454 |   |
| Depreciation and amortization                                             |   |                          | 1,099                    |   |   |   | 1,087 |   |
| Patent litigation settlement                                              |   |                          | (2,939                   | )      |   |   | (2,892 | ) |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Total operating expenses                                                  |   |                          | 28,474                   |   |   |   | 24,122 |   |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Operating loss                                                            |   |                          | (8,972                   | )      |   |   | (5,190 | ) |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Interest and other income, net                                            |   |                          | 590                      |   |   |   | 1,028 |   |
| Income tax provision (benefit)                                            |   |                          | 182                      |   |   |   | (606 | )   |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Loss from continuing operations                                           |   |                          | (8,564                   | )      |   |   | (3,556 | ) |
| Discontinued operations, net                                              |   |                          | —                  |   |   |   | 1,179 |   |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Net loss                                                                  |   | $                             |    (8,564 | )      |   | $      | (2,377 | ) |
|                                                                      |   |                          |                     |   |   |   |   |   |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Basic and diluted loss per common share:                                  |   |                          |                     |   |   |   |   |   |
| Loss from continuing operations                                           |   | $                             | (0.19                    | )      |   | $      | (0.08 | ) |
| Discontinued operations, net                                              |   |                          | —                  |   |   |   | 0.03 |   |
|                                                                      |   |                          |                     |   |   |   |   |   |
| Basic and diluted loss per common share                                   |   | $                             | (0.19                    | )      |   | $      | (0.05 | ) |

----

CONSOLIDATED

|                                                      |   |                 |       |   |                     |   |    |                                       |   |   |               |   |   |   |    |   |   |   |
|-----------------------------------------------------------|--------|----------------------|------------|--------|--------------------------|--------|---------|--------------------------------------------|--------|--------|--------------------|--------|--------|--------|---------|--------|--------|--------|
|                                                      |   | Common Stock         |       |   | AdditionalPaid-InCapital |   |    | AccumulatedOtherComprehensiveIncome (Loss) |   |   | AccumulatedDeficit |   |   | Total  |    |
|                                                      |   | Number ofShares |       |   | Amount                   |   |
| Balance, December 31, 2008                           |   |                 | 45,219,679 |   |                     | $      | 45      |                                       |   | $      | 300,720            |   |   | $      | 568     |   |   | $      | (271,358 | ) |   | $ | 29,975 |   |
| Shares forfeited pursuant to stock awards                 |   |                 | (50,973    | )      |                     |   | — |                                       |   |   | —            |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Share-based compensation                                  |   |                 | —    |   |                     |   | — |                                       |   |   | 1,111              |   |   |   | — |   |   |   | — |   |   |   | 1,111 |   |
| Realized gains reclassifiedto the Statement of Operations |   |                 | —    |   |                     |   | — |                                       |   |   | —            |   |   |   | (568    | )      |   |   | — |   |   |   | (568 | ) |
| Net loss                                                  |   |                 | —    |   |                     |   | — |                                       |   |   | —            |   |   |   | — |   |   |   | (2,377 | ) |   |   | (2,377 | ) |
|                                                      |   |                 |       |   |                     |   |    |                                       |   |   |               |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                           |   |                 | 45,168,706 |   |                     |   | 45      |                                       |   |   | 301,831            |   |   |   | — |   |   |   | (273,735 | ) |   |   | 28,141 |   |
| Shares forfeited pursuant to stock awards                 |   |                 | (19,030    | )      |                     |   | — |                                       |   |   | —            |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Share-based compensation                                  |   |                 | —    |   |                     |   | — |                                       |   |   | 1,101              |   |   |   | — |   |   |   | — |   |   |   | 1,101 |   |
| Issuance of warrants                                      |   |                 | —    |   |                     |   | — |                                       |   |   | 1,260              |   |   |   | — |   |   |   | — |   |   |   | 1,260 |   |
| Premium on convertible note                               |   |                 | —    |   |                     |   | — |                                       |   |   | 900                |   |   |   | — |   |   |   | — |   |   |   | 900 |   |
| Issuance of common stock upon exercise of stock options   |   |                 | 539,386    |   |                     |   | 1       |                                       |   |   | 264                |   |   |   | — |   |   |   | — |   |   |   | 265 |   |
| Net loss                                                  |   |                 | —    |   |                     |   | — |                                       |   |   | —            |   |   |   | — |   |   |   | (8,564 | ) |   |   | (8,564 | ) |
|                                                      |   |                 |       |   |                     |   |    |                                       |   |   |               |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                           |   |                 | 45,689,062 |   |                     | $      | 46      |                                       |   | $      | 305,356            |   |   | $      | — |   |   | $      | (282,299 | ) |   | $ | 23,103 |   |

----

CONSOLIDATED

|                                                                            |   |                          |    |          |   |   |
|---------------------------------------------------------------------------------|--------|-------------------------------|---------|---------------|--------|--------|
|                                                                            |   | Years Ended December 31, |    |
|                                                                            |   | 2010                          |    |          | 2009   |   |
| Cash flows from operating activities:                                           |   |                          |    |          |   |   |
| Net loss                                                                        |   | $                             | (8,564  | )             |   | $      | (2,377 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:     |   |                          |    |          |   |   |   |   |
| Depreciation and amortization                                                   |   |                          | 1,365   |          |   |   | 1,620 |   |
| Provision for bad debt                                                          |   |                          | 105     |          |   |   | 1,051 |   |
| Provision for customer credits                                                  |   |                          | 714     |          |   |   | 982 |   |
| Gain on AVV divestiture                                                         |   |                          | — |          |   |   | (1,787 | ) |
| Share-based compensation                                                        |   |                          | 1,101   |          |   |   | 1,111 |   |
| Changes in assets and liabilities:                                              |   |                          |    |          |   |   |   |   |
| Accounts receivable                                                             |   |                          | (17     | )             |   |   | (559 | ) |
| Prepaid expenses and other current assets                                       |   |                          | (191    | )             |   |   | 784 |   |
| Other non-current assets                                                        |   |                          | 48      |          |   |   | (576 | ) |
| Accounts payable                                                                |   |                          | 747     |          |   |   | (1,040 | ) |
| Accrued expenses and other current liabilities                                  |   |                          | 428     |          |   |   | (2,404 | ) |
| Deferred revenues                                                               |   |                          | (39     | )             |   |   | (1,232 | ) |
| Non-current liabilities                                                         |   |                          | (43     | )             |   |   | (102 | ) |
|                                                                            |   |                          |    |          |   |   |   |   |
| Net cash used in operating activities                                           |   |                          | (4,346  | )             |   |   | (4,529 | ) |
|                                                                            |   |                          |    |          |   |   |   |   |
| Cash flows from investing activities:                                           |   |                          |    |          |   |   |   |   |
| Purchase of Autotropolis and Cyber Ventures                                     |   |                          | (9,000  | )   |   |   | — |   |
| Purchases of strategic investment                                               |   |                          | (1,000  | )   |   |   | — |   |
| Purchases of property and equipment                                             |   |                          | (1,797  | )             |   |   | (134 | ) |
| Purchase of short-term investment                                               |   |                          | (400    | )        |   |   | — |   |
| Proceeds from sale of investment                                                |   |                          | — |          |   |   | 580 |   |
| Proceeds from AVV Divestiture                                                   |   |                          | — |          |   |   | 1,787 |   |
|                                                                            |   |                          |    |          |   |   |   |   |
| Net cash (used in) provided by investing activities                             |   |                          | (12,197 | )             |   |   | 2,233 |   |
|                                                                            |   |                          |    |          |   |   |   |   |
| Cash flows from financing activities:                                           |   |                          |    |          |   |   |   |   |
| Net proceeds from stock option exercises                                        |   |                          | 265     |          |   |   | — |   |
|                                                                            |   |                          |    |          |   |   |   |   |
| Net cash provided by financing activities                                       |   |                          | 265     |          |   |   | — |   |
|                                                                            |   |                          |    |          |   |   |   |   |
| Net decrease in cash and cash equivalents                                       |   |                          | (16,278 | )             |   |   | (2,296 | ) |
| Cash and cash equivalents, beginning of period                                  |   |                          | 25,097  |          |   |   | 27,393 |   |
|                                                                            |   |                          |    |          |   |   |   |   |
| Cash and cash equivalents, end of period                                        |   | $                             | 8,819   |          |   | $      | 25,097 |   |
|                                                                            |   |                          |    |          |   |   |   |   |
| Supplemental disclosure of cash flow information:                               |   |                          |    |          |   |   |   |   |
| Cash paid for income taxes                                                      |   | $                             | 225     |          |   | $      | 161 |   |
|                                                                            |   |                          |    |          |   |   |   |   |
| Supplemental disclosure of non-cash financing activities:                       |   |                          |    |          |   |   |   |   |
| Issuance of convertible note related to Autotropolis/Cyber Ventures acquisition |   | $                             | 5,000   |          |   | $      | — |   |

----

NOTES 

| 1. | Organization and Operations of Autobytel |
|----|------------------------------------------|

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

----

----

----

----

|                                                   |   | 2010   |       |   | 2009   |   |
|--------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Basic and diluted loss per share:                      |   |   |       |   |   |   |
| Weighted average common shares outstanding             |   |   | 45,354,243 |   |   |   | 44,947,865 |   |
| Weighted average unvested restricted stock outstanding |   |   | (264,279   | )      |   |   | (385,023 | ) |
|                                                   |   |   |       |   |   |   |   |   |
| Basic and dilutive shares                              |   |   | 45,089,964 |   |   |   | 44,562,842 |   |

----

|                                                         |   | (in thousands) |   |
|--------------------------------------------------------------|--------|----------------|--------|
|                                                         |   |           |   |
| Cash                                                         |   | $              | 9,000  |   |
| Convertible subordinated promissory note                     |   |           | 5,900  |   |
| Warrant to purchase 2,000,000 shares of Company Common Stock |   |           | 1,260  |   |
| Contingent consideration                                     |   |           | 526    |   |
| Working capital adjustment                                   |   |           | 99     |   |
|                                                         |   | $              | 16,785 |   |

----

|                                      |   | (in thousands) |   |
|-------------------------------------------|--------|----------------|--------|
|                                      |   |           |   |
| Accounts receivable                       |   | $              | 1,296  |   |
| Prepaid online advertising                |   |           | 12     |   |
| Property, plant and equipment             |   |           | 56     |   |
| Other long-term assets                    |   |           | 6      |   |
| Total tangible assets acquired            |   |           | 1,370  |   |
|                                      |   |           |   |   |
| Current liabilities                       |   |           | 662    |   |
| Other liabilities                         |   |           | 100    |   |
| Total liabilities assumed                 |   |           | 762    |   |
|                                      |   |           |   |   |
| Net identifiable assets acquired          |   |           | 608    |   |
|                                      |   |           |   |   |
| Definite-lived intangible assets acquired |   |           | 4,500  |   |
|                                      |   |           |   |   |
| Goodwill                                  |   |           | 11,677 |   |
|                                      |   |           |   |   |
| Net assets acquired                       |   | $              | 16,785 |   |

----

|                                                            | Valuation Method         |   | EstimatedFair Value |   |   | Remaining Useful Lives (1) |   |
|-----------------------------------------------------------------|--------------------------|--------|---------------------|--------|--------|----------------------------|--------|
|                                                            |                     |   | (in thousands)      |   |   | (years)                    |   |
|                                                            |                     |   |                |   |   |                       |   |
| Employment/Non-compete agreements                               | Discounted Cash Flow (2) |   | $                   | 500    |   |                       |   | 5 |   |
| Publications                                                    | Cost Approach (3)        |   |                | 500    |   |                       |   | 3 |   |
| Customer relationships                                          | Excess of Earnings (4)   |   |                | 1,870  |   |                       |   | 3 |   |
| Trademarks and trade names                                      | Relief from Royalty (5)  |   |                | 830    |   |                       |   | 5 |   |
| Software                                                        | Cost Approach (3)        |   |                | 800    |   |                       |   | 3 |   |
|      Total purchased intangible assets |                     |   | $                   | 4,500  |   |                       |   |   |   |

| (1)    | Determination of the estimated useful lives of the individual categories of purchased intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives are recognized over the shorter of the respective lives of the agreement or the period of time the assets are expected to contribute to future cash flows. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (2)    | The employment/non-compete agreements fair value was derived by calculating the difference between the present value of the Company’s forecasted cash flows with the agreements in place and without the agreements in place.                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (3)    | The cost approach estimates the cost required to repurchase or reproduce the intangible assets. The method takes into account technological and economic obsolescence of the publications and software licenses.                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (4)    | The excess of earnings method estimates a purchased intangible asset’s value based on the present value of the prospective net cash flows (or excess earnings) attributable to it. The value attributed to these intangibles was based on projected net cash inflows from existing contracts or relationships.                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (5)    | The relief from royalty method is an earnings approach which assesses the royalty savings an entity realizes since it owns the asset and doesn’t have to pay a third party a license fee for its use.                                                                                                                                                                                                                                                     |

----

|                                      |   |                           |   |   |
|-------------------------------------------|--------|--------------------------------|--------|--------|
|                                      |   | For the year endedDecember 31, |
|                                      |   | 2010                           |   |   | 2009 |
|                                      |   | (in thousands)                 |
| Unaudited pro forma consolidated results: |   |                           |   |   |   |
| Revenue                                   |   | $                              | 59,414 |   |   | $ | 63,189 |   |
| Net loss                                  |   | $                              | (9,304 | )      |   | $ | (4,183 | ) |

|                                                                 |   |                    |    |   |   |   |
|----------------------------------------------------------------------|--------|-------------------------|---------|--------|--------|--------|
|                                                                 |   | As of December 31, |    |
|                                                                 |   | 2010                    |    |   | 2009   |   |
|                                                                 |   | (in thousands)          |    |
| Computer software and hardware and capitalized internal use software |   | $                       | 11,651  |   |   | $      | 10,095 |   |
| Furniture and equipment                                              |   |                    | 1,505   |   |   |   | 1,432 |   |
| Leasehold improvements                                               |   |                    | 1,024   |   |   |   | 949 |   |
|                                                                 |   |                    |    |   |   |   |   |   |
|                                                                 |   |                    | 14,180  |   |   |   | 12,476 |   |
| Less—Accumulated depreciation and amortization                 |   |                    | (12,447 | )      |   |   | (11,473 | ) |
|                                                                 |   |                    |    |   |   |   |   |   |
|  Property and Equipment, net                                    |   | $                       | 1,733   |   |   | $      | 1,003 |   |

----

|                              |                  |   | December 31, 2010 |   |
|-----------------------------------|-----------------------|--------|-------------------|--------|
| Intangible Asset                  | Estimated Useful Life |   | Gross             |   |   | Accumulated Amortization |   |   | Net |   |
|                              |                  |   |              |   |   |   |   | (in thousands) |   |   |   |   |   |
| Trademarks/trade names            | 5 years               |   | $                 | 5,540  |   |   | $ | (4,618 | ) |   | $ | 922 |   |
| Software and publications         | 3 years               |   |              | 1,300  |   |   |   | (125 | ) |   |   | 1,175 |   |
| Customer relationships            | 3 years               |   |              | 1,870  |   |   |   | (180 | ) |   |   | 1,690 |   |
| Employment/non-compete agreements | 5 years               |   |              | 500    |   |   |   | (29 | ) |   |   | 471 |   |
|                              |                  |   | $                 | 9,210  |   |   | $ | (4,952 | ) |   | $ | 4,258 |   |

| Year   |   | Amortization Expense |   |
|--------|--------|----------------------|--------|
|   |   | (in thousands)       |   |
|   |   |                 |   |
| 2011   |   | $                    | 1,370  |   |
| 2012   |   |                 | 1,356  |   |
| 2013   |   |                 | 1,037  |   |
| 2014   |   |                 | 286    |   |
| 2015   |   |                 | 209    |   |
|   |   | $                    | 4,258  |   |

|                                                 |   | As of December 31, |   |
|------------------------------------------------------|--------|-------------------------|--------|
|                                                 |   | 2010                    |   |   | 2009 |   |
|                                                 |   | (in thousands)          |   |
|                                                 |   |                    |   |   |   |   |   |   |
| Compensation and related costs                       |   | $                       | 1,988  |   |   | $ | 2,629 |   |
| Professional fees and other accrued expenses         |   |                    | 2,103  |   |   |   | 667 |   |
| Amounts due to customers                             |   |                    | 367    |   |   |   | 468 |   |
| Other current liabilities                            |   |                    | 537    |   |   |   | 264 |   |
| Total accrued expenses and other current liabilities |   | $                       | 4,995  |   |   | $ | 4,028 |   |

----

|                                                                              |   |                     |    |   |   |   |
|-----------------------------------------------------------------------------------|--------|--------------------------|---------|--------|--------|--------|
|                                                                              |   | Years Ended December 31, |    |
|                                                                              |   | 2010                     |    |   | 2009   |   |
|                                                                              |   | (in thousands)           |    |
|                                                                              |   |                     |    |   |   |   |
| Total net revenues:                                                               |   | $                        | — |   |   | $      | — |   |
| Cost of revenues                                                                  |   |                     | — |   |   |   | — |   |
|                                                                              |   |                     |    |   |   |   |   |   |
| Gross profit                                                                      |   |                     | — |   |   |   | — |   |
| Operating expenses:                                                               |   |                     |    |   |   |   |   |   |
|      Sales and marketing                                 |   |                     | — |   |   |   | — |   |
|      Technology support                                  |   |                     | — |   |   |   | — |   |
|      General and administrative                          |   |                     | — |   |   |   | — |   |
|                                                                              |   |                     |    |   |   |   |   |   |
|           Total operating costs |   |                     | — |   |   |   | — |   |
|                                                                              |   |                     |    |   |   |   |   |   |
|      Gain on sale                                        |   |                     | — |   |   |   | 1,787 |   |
|      Provision for income taxes                          |   |                     | — |   |   |   | 608 |   |
|                                                                              |   |                     |    |   |   |   |   |   |
| Discontinued operations, net                                                      |   | $                        | — |   |   | $      | 1,179 |   |

| 6. | Patent Litigation Settlement |
|----|------------------------------|

----

| 7. | Commitments and Contingencies |
|----|-------------------------------|

|                           |   |   |   |
|--------------------------------|--------|--------|--------|
| Years Ending December 31, |   |   |   |
|                           |   |   |   |   |
| 2011                           |   | $      | 745    |   |
| 2012                           |   |   | 401    |   |
| Thereafter                     |   |   | 70     |   |
|                           |   |   |   |   |
|                           |   | $      | 1,216  |   |

----

----

| 9. | Stockholders’ Equity |
|----|----------------------------|

|                                   |   | Years Ended December 31, |   |
|----------------------------------------|--------|-------------------------------|--------|
|                                   |   | 2010                          |   |   | 2009 |   |
|                                   |   | (in thousands)                |   |
| Share-based compensation expense:      |   |                          |   |   |   |   |
| Cost of revenues                       |   | $                             | 33     |   |   | $ | 32 |   |
| Sales and marketing                    |   |                          | 301    |   |   |   | 358 |   |
| Technology support                     |   |                          | 196    |   |   |   | 115 |   |
| General and administrative             |   |                          | 571    |   |   |   | 606 |   |
|                                   |   |                          |   |   |   |   |   |   |
| Total share-based compensation expense |   | $                             | 1,101  |   |   | $ | 1,111 |   |

----

|                             |   |                                    |   |   |   |   |
|----------------------------------|--------|-----------------------------------------|--------|--------|--------|--------|
|                             |   | Years Ended December 31, |   |
|                             |   | 2010                                    |   |   | 2009   |   |
| Expected volatility              |   |                                    | 83     | %      |   |   | 75 | % |
| Expected risk-free interest rate |   |                                    | 2.1    | %      |   |   | 1.7 | % |
| Expected life (years)            |   |                                    | 4.1    |   |   |   | 4.1 |   |

|                                                  |   |                         |       |   |                                                          |   |   |                                    |   |   |                                |   |
|-------------------------------------------------------|--------|------------------------------|------------|--------|---------------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|-------------------------------------|--------|
|                                                  |   | Number ofOptions   |       |   | Weighted AverageExercise Priceper Share   |   |   | WeightedAverageRemainingContractualTerm |   |   | AggregateIntrinsicValue   |   |
|                                                  |   |                         |       |   |                                                          |   |   | (years)                                 |   |   | (thousands)                         |   |
| Outstanding at December 31, 2009                 |   |                         | 7,799,904  |   |                                                          | $      | 2.62   |                                    |   |   | 6.0                                 |   |   |   |   |
| Granted                                               |   |                         | 1,961,210  |   |                                                          |   | 0.94   |                                    |   |   |                                |   |   |   |   |
| Exercised                                             |   |                         | (539,386   | )      |                                                          |   | 0.49   |                                    |   |   |                                |   |   |   |   |
| Forfeited or expired                                  |   |                         | (2,377,771 | )      |                                                          |   | 4.16   |                                    |   |   |                                |   |   |   |   |
|                                                  |   |                         |       |   |                                                          |   |   |                                    |   |   |                                |   |   |   |   |
| Outstanding at December 31, 2010                 |   |                         | 6,843,957  |   |                                                          | $      | 1.76   |                                    |   |   | 6.9                                 |   |   | $ | 1,022 |   |
|                                                  |   |                         |       |   |                                                          |   |   |                                    |   |   |                                |   |   |   |   |   |
| Vested and expected to vest at December 31, 2010 |   |                         | 6,449,496  |   |                                                          | $      | 1.81   |                                    |   |   | 6.8                                 |   |   | $ | 997 |   |
|                                                  |   |                         |       |   |                                                          |   |   |                                    |   |   |                                |   |   |   |   |   |
| Exercisable at December 31, 2010                 |   |                         | 4,473,870  |   |                                                          | $      | 2.24   |                                    |   |   | 6.3                                 |   |   | $ | 806 |   |

----

|                                |   |      |     |   |                                      |   |
|-------------------------------------|--------|-----------|----------|--------|-------------------------------------------|--------|
|                                |   | RSA Units |     |   | Weighted AverageGrant Date FairValue |   |
|                                |   |      |     |   |                                      |   |   |   |
| Unvested at December 31, 2009       |   |      | 385,023  |   |                                      | $      | 1.06 |   |
| Vested/forfeiture restriction lapse |   |      | (242,217 | )      |                                      |   | 1.06 |   |
| Forfeited                           |   |      | (19,030  | )      |                                      |   | 1.06 |   |
|                                |   |      |     |   |                                      |   |   |   |
| Unvested at December 31, 2010  |   |      | 123,776  |   |                                      | $      | 1.06 |   |
|                                |   |      |     |   |                                      |   |   |   |

----

----

|                                                              |   | Number of Shares |       |
|-------------------------------------------------------------------|--------|------------------|------------|
|                                                              |   |             |       |   |
| Stock options outstanding                                         |   |             | 6,843,957  |   |
| Authorized for future grants under stock-based incentive plans    |   |             | 5,409,689  |   |
| Authorized for future issuance under employee stock purchase plan |   |             | 650,000    |   |
| Restricted stock units outstanding                                |   |             | 123,776    |   |
| Reserved for exercise of Warrant                                  |   |             | 2,000,000  |   |
| Reserved for conversion of promissory note                        |   |             | 5,376,344  |   |
| Total                                                             |   |             | 20,403,766 |   |

| 10. | Severance Costs |
|-----|-----------------|

|   (in thousands) |   | Quarter EndedMarch 31, 2010 |    |   | Quarter EndedJune 30, 2010 |   |    | Quarter EndedSeptember 30, 2010 |   |   | Quarter EndedDecember 31, 2010 |   |   | Year EndedDecember 31, 2010 |   |
|----------------------------|--------|-----------------------------|---------|--------|----------------------------|--------|---------|---------------------------------|--------|--------|--------------------------------|--------|--------|-----------------------------|--------|
| Sales and marketing        |   | $                           | — |   |                       | $      | — |                            |   | $      | 57                             |   |   | $                           | 244    |   |   | $ | 301 |   |
| Technology support         |   |                        | — |   |                       |   | — |                            |   |   | —                        |   |   |                        | 362    |   |   |   | 362 |   |
| General and administrative |   |                        | — |   |                       |   | 298     |                            |   |   | —                        |   |   |                        | 301    |   |   |   | 599 |   |
| Total                      |   | $                           | — |   |                       | $      | 298     |                            |   | $      | 57                             |   |   | $                           | 907    |   |   | $ | 1,262 |   |

----

|                               |   |           |    |   |   |   |
|------------------------------------|--------|----------------|---------|--------|--------|--------|
|                               |   | 2010           |    |   | 2009   |   |
|                               |   | (in thousands) |    |
| Current:                           |   |           |    |   |   |   |
| Federal                            |   | $              | — |   |   | $      | (635 | )  |
| State                              |   |           | 86      |   |   |   | 29 |   |
|                               |   |           |    |   |   |   |   |   |
|                               |   |           | 86      |   |   |   | (606 | )   |
| Deferred:                          |   |           |    |   |   |   |   |   |
| Federal                            |   |           | 81      |   |   |   | — |   |
| State                              |   |           | 15      |   |   |   | — |   |
|                               |   |           |    |   |   |   |   |   |
|                               |   |           | 96      |   |   |   | — |   |
|                               |   |           |    |   |   |   |   |   |
| Total income tax expense (benefit) |   | $              | 182     |   |   | $      | (606 | )   |

|                                          |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                          |   | 2010   |   |   | 2009   |   |
|                                          |   |   |   |   |   |   |   |   |
| Tax provision at U.S. federal statutory rates |   |   | (35.0  | )%     |   |   | (35.0 | )% |
| State taxes                                   |   |   | (4.3   | )      |   |   | (4.1 | ) |
| Non-deductible permanent items                |   |   | (10.8  | )      |   |   | (41.1 | ) |
| Incentive stock options                       |   |   | 0.3    |   |   |   | 2.0 |   |
| Return to provision items                     |   |   | 15.7   |   |   |   | — |   |
| Change in federal valuation allowance         |   |   | 36.3   |   |   |   | 51.0 |   |
|                                          |   |   |   |   |   |   |   |   |
|  Effective income tax rate               |   |   | 2.2    | %      |   |   | (27.2 | )% |

----

|                                 |   |           |    |          |   |   |
|--------------------------------------|--------|----------------|---------|---------------|--------|--------|
|                                 |   | 2010           |    |          | 2009   |   |
|                                 |   | (in thousands) |    |
| Deferred tax assets:                 |   |           |    |          |   |   |
| Allowance for doubtful accounts      |   | $              | 241     |          |   | $      | 430 |   |
| Accrued liabilities                  |   |           | 238     |          |   |   | 228 |   |
| Net operating loss carry-forwards    |   |           | 39,993  |          |   |   | 35,869 |   |
| Fixed assets                         |   |           | 167     |          |   |   | 593 |   |
| Intangible assets                    |   |           | 2,488   |          |   |   | 3,327 |   |
| Share-based compensation expense     |   |           | 4,787   |          |   |   | 4,473 |   |
| Deferred revenue                     |   |           | 5       |          |   |   | 13 |   |
| Other                                |   |           | 84      |          |   |   | 20 |   |
|                                 |   |           |    |          |   |   |   |   |
| Total gross deferred tax assets      |   |           | 48,003  |          |   |   | 44,953 |   |
| Valuation allowance                  |   |           | (48,003 | )             |   |   | (44,953 | ) |
| Deferred tax liabilities:            |   |           |    |          |   |   |   |   |
| Tax deductible goodwill              |   |           | (96     | )   |   |   | — |   |
|                                 |   |           |    |          |   |   |   |   |
| Total gross deferred tax liabilities |   |           | (96     | )   |   |   | — |   |
|                                 |   |           |    |          |   |   |   |   |
| Net deferred income taxes            |   | $              | (96     | )   |   | $      | — |   |

|   |   |   |    |
|--------|--------|--------|---------|
| 2021   |   | $      | 25.4    |   |
| 2022   |   |   | 1.7     |   |
| 2023   |   |   | — |   |
| 2024   |   |   | 4.1     |   |
| 2025   |   |   | 7.7     |   |
| 2026   |   |   | 26.4    |   |
| 2027   |   |   | 15.5    |   |
| 2028   |   |   | 5.1     |   |
| 2029   |   |   | 8.6     |   |
| 2030   |   |   | 13.5    |   |
|   |   |   |    |   |
|   |   | $      | 108.0   |   |

----

|   |   |   |   |
|--------|--------|--------|--------|
| 2017   |   | $      | 15.9   |   |
| 2018   |   |   | 3.8    |   |
| 2019   |   |   | 5.9    |   |
| 2020   |   |   | 21.4   |   |
| 2021   |   |   | 3.2    |   |
| 2031   |   |   | 21.9   |   |
|   |   |   |   |   |
|   |   |   | 72.1   |   |

|                                                                     |   |           |    |   |   |   |
|--------------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                                     |   | 2010           |    |   | 2009   |   |
|                                                                     |   | (in thousands) |    |
|                                                                     |   |           |    |   |   |   |   |   |
| Balance at January 1,                                                    |   | $              | 500     |   |   | $      | 500 |   |
| Additions based on tax positions related to the current year             |   |           | — |   |   |   | — |   |
| Reductions based on tax positions related to prior years and settlements |   |           | — |   |   |   | — |   |
| Reductions based on the lapse of the statutes of limitations             |   |           | — |   |   |   | — |   |
|                                                                     |   |           |    |   |   |   |   |   |
| Balance at December 31,                                                  |   | $              | 500     |   |   | $      | 500 |   |

----

| 13. | Quarterly Financial Data (Unaudited) |
|-----|--------------------------------------|

|                                                         |   |                                     |   |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |                 |   |   |                 |   |
|--------------------------------------------------------------|--------|------------------------------------------|--------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|--------|----------------------|--------|
|                                                         |   | Quarter Ended                            |   |
|                                                         |   | Dec 31,2010 (a)                     |   |   | Sep 30,2010 (b) |   |   | Jun 30,2010 (c) |   |   | Mar 31,2010 (d) |   |   | Dec 31,2009 (e) |   |   | Sep 30,2009 (f) |   |   | Jun 30,2009 (g) |   |   | Mar 31,2009 (h) |   |
|                                                         |   | (in thousands, except per-share amounts) |   |
| Total net revenues                                           |   | $                                        | 14,659 |   |                 | $      | 12,931 |                 |   | $      | 12,131               |   |   | $                    | 11,813 |   |                 | $      | 12,250 |                 |   | $      | 13,354               |   |   | $ | 13,444 |   |   | $ | 13,870 |   |
| Gross profit                                                 |   |                                     | 5,754  |   |                 |   | 4,757  |                 |   |   | 4,242                |   |   |                 | 4,748  |   |                 |   | 4,787  |                 |   |   | 4,740                |   |   |   | 4,422 |   |   |   | 4,983 |   |
| Income (loss) from continuing operations                     |   |                                     | (3,299 | )      |                 |   | (3,061 | )                    |   |   | (3,001               | )      |   |                 | 797    |   |                 |   | (985   | )                    |   |   | (1,185               | )      |   |   | (1,029 | ) |   |   | (357 | ) |
| Net income (loss)                                            |   | $                                        | (3,299 | )      |                 | $      | (3,061 | )                    |   | $      | (3,001               | )      |   | $                    | 797    |   |                 | $      | (970   | )                    |   | $      | (799                 | )      |   | $ | (251 | ) |   | $ | (357 | ) |
| Basic and diluted loss per share from continuing operations: |   | $                                        | (0.07  | )      |                 | $      | (0.07  | )                    |   | $      | (0.07                | )      |   | $                    | 0.02   |   |                 | $      | (0.02  | )                    |   | $      | (0.03                | )      |   | $ | (0.02 | ) |   | $ | (0.01 | ) |

| (a)   | Total net revenues, gross profit and net loss include Auto/Cyber revenues, gross profit and net income of $4.2 million, $1.4 million and $0.8 million, respectively.  Loss from continuing operations includes $0.9 million of severance and other employee termination expenses. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Total net revenues, gross profit and net loss include Auto/Cyber revenues, gross profit and net income of $0.5 million, $0.2 million and $0.2 million, respectively.  Loss from continuing operations includes $0.1 million of severance and other employee termination expenses. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Loss from continuing operations includes $0.3 million of severance and other employee termination expenses. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (d) | Income from continuing operations and net income includes a $2.7 million litigation settlement gain. |
|-----|------------------------------------------------------------------------------------------------------|

| (e) | Includes $13,000 in severance expense. |
|-----|----------------------------------------|

| (f) | Net loss includes a net $0.6 million gain related to the sale of certain assets and liabilities of AVV and $17,000 of severance expense. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Net loss includes a net $1.3 million gain related to the sale of certain assets and liabilities of AVV. |
|-----|---------------------------------------------------------------------------------------------------------|

| (h) | Loss from continuing operations and net loss includes a $2.7 million litigation settlement gain and $0.5 million of severance and other employee termination expenses. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | AUTOBYTEL INC. |
|--------|----------------|

|                            |   |                          |   |   |   |   |
|---------------------------------|--------|-------------------------------|--------|--------|--------|--------|
|                            |   | Years Ended December 31, |   |
|                            |   | 2010                          |   |   | 2009   |   |
|                            |   | (in thousands)                |   |
| Allowance for bad debts:        |   |                          |   |   |   |   |
| Beginning balance               |   | $                             | 822    |   |   | $      | 966 |   |
| Additions                       |   |                          | 105    |   |   |   | 1,051 |   |
| Write-offs                      |   |                          | (572   | )      |   |   | (1,195 | ) |
|                            |   |                          |   |   |   |   |   |   |
| Ending balance                  |   | $                             | 355    |   |   | $      | 822 |   |
|                            |   |                          |   |   |   |   |   |   |
| Allowance for customer credits: |   |                          |   |   |   |   |   |   |
| Beginning balance               |   | $                             | 285    |   |   | $      | 311 |   |
| Additions                       |   |                          | 714    |   |   |   | 982 |   |
| Write-offs                      |   |                          | (733   | )      |   |   | (1,008 | ) |
|                            |   |                          |   |   |   |   |   |   |
| Ending balance                  |   | $                             | 266    |   |   | $      | 285 |   |
|                            |   |                          |   |   |   |   |   |   |
| Tax valuation allowance:        |   |                          |   |   |   |   |   |   |
| Beginning balance               |   | $                             | 44,953 |   |   | $      | 43,640 |   |
| Charged to tax expense          |   |                          | 4,273  |   |   |   | 1,890 |   |
| Credited to other               |   |                          | (1,223 | )      |   |   | (577 | ) |
|                            |   |                          |   |   |   |   |   |   |
| Ending balance                  |   | $                             | 48,003 |   |   | $      | 44,953 |   |

----

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2.1            | Asset Purchase Agreement dated as of January 23, 2008 between the Company, AVV, Inc. and Dominion Enterprises is incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on January 29, 2008 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2.2.2 ‡  | Asset Purchase Agreement dated as of September 16, 2010 by and among Autotropolis, Inc., a Florida corporation, Cyber Ventures, Inc., a Florida corporation, William Ferriolo, Ian Bentley and the Ian Bentley Revocable Trust created U/A/D 3/1/2005, Autobytel Inc., a Delaware corporation, and Autobytel Acquisition Subsidiary, Inc., a Delaware corporation is incorporated herein by reference to Exhibit 2.1 of the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010 filed with the SEC on November 12, 2010 (SEC File No. 001-34761) (“3rd Quarter 2010 Form 10-Q”)                                                                                                                                                                                                                                                                                                                                                                           |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.1            | Fifth Amended and Restated Certificate of Incorporation of Autobytel Inc. (formerly Autobytel.com Inc. (“Autobytel” or the “Company”)) certified by the Secretary of State of Delaware (filed December 14, 1998), as amended by Certificate of Amendment dated March 1, 1999, Second Certificate of Amendment of the Fifth Amended and Restated Certificate of Incorporation of Autobytel dated July 22, 1999, Third Certificate of Amendment of the Fifth Amended and Restated Certificate of Incorporation of Autobytel dated August 14, 2001, Certificate of Designation of Series A Junior Participating Preferred Stock dated July 30, 2004, and Amended Certificate of Designation of Series A Junior Participating Preferred Stock dated April 24, 2009, which is incorporated herein by reference to Exhibit 3.1 of the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 filed with the SEC on April 24, 2009 (SEC File No. 000-22239) |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2            | Second Amended and Restated Bylaws of Autobytel dated August 1, 2009, which is incorporated herein by reference to Exhibit 3.2 of the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009 filed with the SEC on October 23, 2009 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.1            | Form of Common Stock Certificate of Autobytel is incorporated herein by reference to Exhibit 4.1 of the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001 filed with the SEC on November 14, 2001 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.2            | Tax Benefit Preservation Plan dated as of May 26, 2010 between Autobytel and Computershare Trust Company, N.A., as rights agent, together with the following exhibits thereto: Exhibit A – Form of Right Certificate; Exhibit B – Summary of Rights to Purchase Shares of Preferred Stock of Autobytel Inc., is incorporated hereby by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on June 2, 2010 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.1**         | Form of Amended and Restated Indemnification Agreement between Autobytel and its directors and officers is incorporated herein by reference to Exhibit 99.1 to the Current Report on Form 8-K filed with the SEC on July 22, 2010 (SEC File No. 001-34761)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.2**         | Form of Outside Director Stock Option Agreement under the 2004 Restricted Stock and Option Plan is incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on September 14, 2005 (SEC File No. 000-22239) (“September 2005 Form 8-K”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.3**         | Form of Letter Agreement (amending certain stock option agreements with Outside Directors) is incorporated herein by reference to Exhibit 10.2 of the September 2005 Form 8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4**         | Autobytel.com Inc. 1998 Stock Option Plan is incorporated herein by reference to Exhibit 10.8 of Amendment No. 1 to the S-1 Registration Statement filed with the SEC on February 9, 1999 (SEC File No. 333-70621) (“Amendment No. 1 to S-1 Registration Statement”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5**         | Autobytel.com Inc. 1999 Stock Option Plan is incorporated herein by reference to Exhibit 10.30 of Amendment No. 1 to S-1 Registration Statement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.6**         | Autobytel.com Inc. 1999 Employee and Acquisition Related Stock Option Plan is incorporated herein by reference to Exhibit 10.1 of the Registration Statement on Form S-8  filed with the SEC on November 1, 1999 (SEC File No. 333-90045)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.7**         | Amendment No. 1 to the Autobytel.com Inc. 1998 Stock Option Plan dated September 22, 1999 is incorporated herein by reference to Exhibit 10.2 of Form 10-Q for the quarterly period ended September 30, 1999 filed with the SEC on November 12, 1999 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.8**         | Amendment No. 1 to the Autobytel.com Inc. 1999 Stock Option Plan dated September 22, 1999 is incorporated herein by reference to Exhibit 10.1 of Form 10-Q for the quarterly period ended September 30, 1999 filed with the SEC on November 12, 1999  (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.9**         | 1996 Stock Incentive Plan and related agreements are incorporated herein by reference to Exhibit 10.6 of  Amendment No. 1 to S-1 Registration Statement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.10**        | Autobytel.com Inc. 2000 Stock Option Plan is incorporated herein by reference to Exhibit 99.1 of the Registration Statement on Form S-8 filed with the SEC on June 15, 2000 (SEC File No. 333-39396)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.11**        | Autobytel.com Inc. 2001 Restricted Stock Plan is incorporated herein by reference to Annex D to the Registration Statement on Form S-4 originally filed with the SEC on May 11, 2001 (SEC File No. 333-60798) and amended on July 17, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.12**        | Amendment No. 1 to the Auto-by-Tel Corporation 1996 Stock Incentive Plan is incorporated herein by reference to Exhibit (d)(2) of Schedule TO filed with the SEC on December 14, 2001 (SEC File No. 005-58067) (“Schedule TO”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.13**        | Amendment No. 2 to the Autobytel.com Inc. 1998 Stock Option Plan is incorporated herein by reference to Exhibit (d)(5) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.14**        | Amendment No. 2 to the Autobytel.com Inc. 1999 Stock Option Plan is incorporated herein by reference to Exhibit (d)(8) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.15**        | Amendment No. 1 to the Autobytel.com Inc. 1999 Employee and Acquisition Related Stock Option Plan is incorporated herein by reference to Exhibit (d)(10) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.16**        | Amendment No. 1 to the Autobytel.com Inc. 2000 Stock Option Plan is incorporated herein by reference to Exhibit (d)(12) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.17**        | Amendment No. 2 to the Autobytel.com Inc. 2000 Stock Option Plan is incorporated herein by reference to Exhibit 10.46 of the Annual Report on Form 10-K for the Year Ended December 31, 2001 filed with the SEC on March 22, 2002 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.18**        | Form of Stock Option Agreement pursuant to Auto-by-Tel Corporation 1996 Stock Incentive Plan is incorporated herein by reference to Exhibit (d)(13) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.19**        | Form of Stock Option Agreement pursuant to Autobytel.com Inc. 1998 Stock Option Plan is incorporated herein by reference to Exhibit (d)(14) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.20**        | Form of Stock Option Agreement pursuant to Autobytel.com Inc. 1999 Stock Option Plan is incorporated herein by reference to Exhibit (d)(15) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.21**        | Form of Stock Option Agreement pursuant to Autobytel.com Inc. 1999 Employee and Acquisition Related Stock Option Plan is incorporated herein by reference to Exhibit (d)(16) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.22**        | Form of Stock Option Agreement pursuant to Autobytel.com Inc. 2000 Stock Option Plan is incorporated herein by reference to Exhibit (d)(17) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.23**        | Form of Performance Stock Option Agreement pursuant to Autobytel.com Inc. 1999 Stock Option Plan is incorporated herein by reference to Exhibit (d)(18) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.24**        | Form of Non-employee Director Stock Option Agreement pursuant to Auto-by-Tel Corporation 1996 Stock Incentive Plan is incorporated herein by reference to Exhibit (d)(19) of the Schedule TO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.25**        | Autobytel Inc. Amended and Restated 2001 Restricted Stock and Option Plan is incorporated herein by reference to Exhibit 4.7 of Post-Effective Amendment to Registration Statement on Form S-8  filed with the SEC on July 31, 2003 (SEC File No. 333-67692)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.26**        | Form of Outside Director Stock Option Agreement under the Autobytel 1999 Stock Option Plan is incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on November 3, 2004 (SEC File No. 000-22239) (“November 3, 2004 Form 8-K”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.27**        | Form of Outside Director Stock Option Agreement under the Autobytel 2004 Restricted Stock and Option Plan is incorporated herein by reference to Exhibit 10.2 of the November 3, 2004 Form 8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.28**        | Autobytel Inc. 2004 Restricted Stock and Option Plan is incorporated herein by reference to Exhibit 4.8 of the Registration Statement on Form S-8 filed with the SEC on June 28, 2004 (SEC File No. 333-116930)  (“2004 Form S-8”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.29**        | Form of Employee Stock Option Agreement under the Autobytel 2004 Restricted Stock and Option Plan is incorporated herein by reference to Exhibit 4.9 of the 2004 Form S-8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.30**        | Form of Stock Option Agreement under the Autobytel 2004 Restricted Stock and Option Plan is incorporated herein by reference to Exhibit 10.65 of the Annual Report on Form 10-K for the Year Ended December 31, 2004 filed with the SEC on May 31, 2005 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.31**        | 2006 Inducement Stock Option Plan is incorporated herein by reference to Exhibit 4.9 of the Registration Statement on Form S-8  filed with the Securities and Exchange Commission on June 16, 2006 (SEC File No. 333-135076) (“2006 Form S-8”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.32**        | Form of Employee Inducement Stock Option Agreement is incorporated herein by reference to Exhibit 4.10 of the 2006 Form S-8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.33**† | Settlement Agreement entered into as of December 19, 2006 among Autobytel Inc., The Cobalt Group, Inc., Dealix Corporation and for limited purposes WP Equity Partners, Inc. is incorporated herein by reference to Exhibit 10.76 of the Annual Report on Form 10-K for the Year Ended December 31, 2006 filed with the SEC on March 15, 2007 (SEC File No. 000-22239) (“2006 Form 10-K”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.34**        | Letter Agreement dated July 12, 2004 between Autobytel and Mark Garms is incorporated herein by reference to Exhibit 10.80 of the 2006 Form 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.35**        | Letter Agreement dated October 30, 2007 between the Company and Curtis DeWalt is incorporated herein by reference to Exhibit 10.2 of the Current Report on Form 8-K filed with the SEC on November 15, 2007 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.36**        | Employment Agreement dated February 8, 2002 between the Company and Mark A. Garms, as amended by Memorandum dated as of December 8, 2008 and Memorandum dated as of March 1, 2009 is incorporated herein by reference to Exhibit 10.75 of the Annual Report on Form 10-K for the Year Ended December 31, 2008 filed with the SEC on March 13, 2009 (SEC File No. 000-22239) (“2008 Form 10-K”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.37**        | Amended and Restated Severance Agreement dated as of September 29, 2008 between the Company and Mark A. Garms is incorporated herein by reference to Exhibit 10.3 of the Current Report on Form 8-K filed with the SEC on October 3, 2008 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.38**        | Letter Agreement dated October 10, 2006 between the Company and Glenn E. Fuller, as amended by Memorandum dated April 18, 2008, Memorandum dated as of December 8, 2008, and Memorandum dated as of March 1, 2009 is incorporated herein by reference to Exhibit 10.77 of the 2008 Form 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.39**        | Amended and Restated Severance Agreement dated as of September 29, 2008 between the Company and Glenn E. Fuller is incorporated herein by reference to Exhibit 10.4 of the Current Report on Form 8-K filed with the SEC on October 3, 2008 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.40**        | Letter Agreement dated October 4, 2007 between the Company and Curtis E. DeWalt, as amended by Memorandum dated as of December 8, 2008 and Memorandum dated March 1, 2009 is incorporated herein by reference to Exhibit 10.79 of the 2008 Form 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.41**        | Amended and Restated Severance Agreement dated as of September 29, 2008 between the Company and Curtis E. DeWalt is incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on March 9, 2009 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.42**        | Letter Agreement dated August 6, 2004 between the Company and Wesley Ozima, as amended by Memorandum dated March 1, 2009 is incorporated herein by reference to Exhibit 10.81 of the 2008 Form 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.43**        | Amended and Restated Severance Agreement dated as of November 15, 2008 between the Company and Wesley Ozima is incorporated herein by reference to Exhibit 10.82 of the 2008 Form 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.44**        | Form of Restricted Stock Award under the Amended and Restated 2001 Restricted Stock and Option Plan and the 2004 Restricted Stock and Option Plan is incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on October 3, 2008 (SEC File No. 000-22239) (“October 2008 Form 8-K”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.45**        | Form of Option Agreement under the 1998 Stock Option Plan, the 1999 Employee and Acquisition Related Stock Option Plan and the 1999 Stock Option Plan is incorporated herein by reference to Exhibit 10.2 of the October 2008 Form 8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.46**        | 1996 Employee Stock Purchase Plan is incorporated herein by reference to Exhibit 10.7 of Amendment No. 1 to S-1 Registration Statement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.47**        | 2003 Amendment to Auto-By-Tel Corporation 1996 Employee Stock Purchase Plan is incorporated herein by reference to Exhibit 4.8 of the Registration Statement on Form S-8  with the SEC on July 31, 2003 (SEC File No. 333-107525)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.48**        | 2007 Amendment to Auto-By-Tel Corporation 1996 Employee Stock Purchase Plan is incorporated herein by reference to Exhibit 10.2 of Form 10-Q for the quarterly period ended June 30, 2007 filed with the SEC on August 9, 2007 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.49**        | Amendment No. 2 to the Autobytel.com Inc. 1999 Employee and Acquisition Related Stock Option Plan dated May 1, 2009 is incorporated herein by reference to Exhibit 10.86 of the Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2009 filed with the SEC on July 24, 2009 (SEC File No. 000-22239) (“Second Quarter 2009 Form 10-Q”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.50**        | Amendment No. 3 to the Autobytel.com Inc. 2000 Stock Option Plan dated May 1, 2009 is incorporated herein by reference to Exhibit 10.87 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.51**        | Amendment No. 1 to the Autobytel Inc. Amended and Restated 2001 Restricted Stock and Option Plan dated May 1, 2009 is incorporated herein by reference to Exhibit 10.88 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.52**        | Amendment No. 1 to the Autobytel Inc. 2004 Restricted Stock and Option Plan dated May 1, 2009 is incorporated herein by reference to Exhibit 10.89 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.53**        | Amendment No. 1 to the Autobytel Inc. 2006 Inducement Stock Option Plan dated May 1, 2009 is incorporated herein by reference to Exhibit 10.90 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.54**        | Autobytel Inc. Amended and Restated Employment Agreement dated effective as of April 3, 2009 between Autobytel and Jeffrey H. Coats is incorporated herein by reference to Exhibit 10.91 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.55**        | Autobytel Inc. 2000 Stock Option Plan, Stock Option Award Agreement dated effective as of April 3, 2009 between Autobytel and Jeffrey H. Coats is incorporated herein by reference to Exhibit 10.92 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.56**        | Autobytel Inc. Amended and Restated 2001 Restricted Stock and Option Plan, Stock Option Award Agreement dated effective as of April 3, 2009 between Autobytel and Jeffrey H. Coats is incorporated herein by reference to Exhibit 10.93 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.57**        | Autobytel Inc. 2004 Restricted Stock and Option Plan, Stock Option Award Agreement dated effective as of April 3, 2009 between Autobytel and Jeffrey H. Coats is incorporated herein by reference to Exhibit 10.94 of the Second Quarter 2009 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.58**        | Employment Agreement dated February 1, 2010 between Autobytel and Stephen Lind is incorporated herein by reference to Exhibit 10.76 to the Annual Report on Form 10-K filed with the SEC on March 4, 2010 (SEC File No. 001-34761) (“2009 Form 10-K”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.59**        | Severance Benefits Agreement dated February 1, 2010 between Autobytel and Stephen Lind is incorporated herein by reference to Exhibit 10.77 of the 2009 Form 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.60**        | Autobytel Inc. 2010 Equity Incentive Plan is incorporated herein by reference to Exhibit 10.2 of the Current Report on Form 8-K filed with the SEC on June 25, 2010 (SEC File No. 001-34761) (“June 2010 Form 8-K”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.61* **      | Form of Employee Stock Option Award Agreement under the Autobytel Inc. 2010 Equity Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.62* **      | Form of Performance-Based Option Award Agreement under the Autobytel Inc. 2010 Equity Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.63* **      | Form of Indemnification Agreement between Autobytel and its directors and officers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.64**        | Amendment No. 1 to Amended and Restated Employment Agreement between Autobytel and Jeffrey H. Coats effective as of December 17, 2010 is incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on December 23, 2010 (SEC File No. 001-34761)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.65* **      | Severance Benefits Agreement between Autobytel and James Helberg dated May 25, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.66* **      | Letter Agreement between Autobytel and James Helberg dated June 2, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.67* **      | Severance Benefits Agreement between Autobytel and John Petrone dated February 25, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.68* **      | Letter Agreement between Autobytel and John Petrone dated December 10, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.69**        | Consulting Services Agreement between Autobytel and Mark A. Garms effective as of June 21, 2010 is incorporated herein by reference to Exhibit 10.1 of the June 2010 Form 8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.70          | Standstill Agreement between Autobytel, CCM Master Qualified Fund, Ltd., a Cayman Islands exempted company, Coghill Capital Management LLC and Clint Coghill dated January 13, 2000 is incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on January 15, 2009 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.71          | Standstill and Voting Agreement dated effective as of November 30, 2010 by and between Autobytel and Artis Capital Management, Inc., Artis Capital Management, L.P., and certain of its affiliates and subsidiaries is incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on December 3, 2010 (SEC File No. 001-34761)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.72          | Convertible Subordinated Promissory Note dated September 16, 2010 (Principal Amount $5,000,000) issued by Autobytel to Autotropolis, Inc. and Cyber Ventures, Inc. is incorporated herein by reference to Exhibit 4.5 of the 3rd Quarter 2010 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.73          | Warrant to Purchase 2,000,000 Shares of Autobytel Common Stock dated September 16, 2010 issued by Autobytel to Autotropolis, Inc. and Cyber Ventures, Inc. is incorporated herein by reference to Exhibit 4.6 of the 3rd Quarter 2010 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.74          | Shareholders Agreement dated as of September 17, 2010 by and among Autobytel, Autotropolis, Inc., a Florida corporation, Cyber Ventures, Inc., a Florida corporation, William Ferriolo, Ian Bentley and the Ian Bentley Revocable Trust created U/A/D 3/1/2005 is incorporated herein by reference to Exhibit 4.7 of the 3rd Quarter 2010 Form 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.75          | Amended and Restated Rights Agreement dated as of April 24, 2009 between Autobytel and Computershare Trust Company, N.A., successor-in-interest to U.S. Stock Transfer Corporation (which includes the form of Amended Certificate of Designation of the Series A Junior Participating Preferred Stock of Autobytel as Exhibit A, the form of Right Certificate as Exhibit B and the Summary of Rights to Purchase Preferred Shares as Exhibit C, is incorporated herein by reference to Exhibit 4.2 of the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 filed with the SEC on April 24, 2009 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                             |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.76          | First Amendment to Amended and Restated Rights Agreement dated May 26, 2010 is incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on June 2, 2010 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 23.1*          | Consent of Independent Registered Public Accounting Firm, Ernst & Young LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 24.1*          | Power of Attorney (included in the signature page hereto)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.1*          | Chief Executive Officer Section 302 Certification of Periodic Report dated March 10, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.2*          | Chief Financial Officer Section 302 Certification of Periodic Report dated March 10, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.1*          | Chief Executive Officer and Chief Financial Officer Section 906 Certification of Periodic Report dated March 10, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| * | Filed herewith. |
|---|-----------------|

| ** | Management Contract or Compensatory Plan or Arrangement. |
|----|----------------------------------------------------------|

| † | Confidential treatment has been requested with regard to certain portions of this document. Such portions were filed separately with the Securities and Exchange Commission. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ‡ | Certain schedules in this Exhibit have been omitted in accordance with Item 601(b)(2) of Regulation S-K.  Autobytel Inc. will furnish supplementally a copy of any omitted schedule or exhibit to the Securities and Exchange Commission upon request; provided, however, that Autobytel Inc. may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any schedule or exhibit so furnished. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|