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|   | x     QUARTERLY 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 or other jurisdiction of incorporation or organization) | (I.R.S. Employer identification number) |
|                                                           |                                    |
| 18872 MacArthur Boulevard, Suite 200, Irvine, California       | 92612                                   |
| (Address of principal executive offices)                       | (Zip Code)                              |

| Large accelerated filer   ̈ | Accelerated filer  x | Non-accelerated filer   ̈       | Smaller reporting company  x |
|-------------------------------------------|--------------------------------|-----------------------------------------------|----------------------------------------|
|                                      |                           | (Do not check if a smaller reporting company) |                                   |

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|          |                                                                                                                                             |                                         |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
|          | INDEX                                                                                                                                            |                                         |
|          |                                                                                                                                             | Page                                         |
|          | PART I. FINANCIAL INFORMATION                                                                                                                    |                                         |
|          |                                                                                                                                             |                                         |
| ITEM 1.  | Unaudited Consolidated Condensed Financial Statements:                                                                                           |                                         |
|          |                                                                                                                                             |                                         |
|          | Unaudited Consolidated Condensed Balance Sheets as of September 30, 2009 and December 31, 2008                                                   |        3  |
|          |                                                                                                                                             |                                         |
|          | Unaudited Consolidated Condensed Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2009 and 2008 |        4  |
|          |                                                                                                                                             |                                         |
|          | Unaudited Consolidated Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2009 and 2008                                  |        5  |
|          |                                                                                                                                             |                                         |
|          | Notes to Unaudited Consolidated Condensed Financial Statements                                                                                   |        6  |
|          |                                                                                                                                             |                                         |
| ITEM 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                      |        15 |
|          |                                                                                                                                             |                                         |
| ITEM 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                                                       |        22 |
|          |                                                                                                                                             |                                         |
| ITEM 4.  | Controls and Procedures                                                                                                                          |        22 |
|          |                                                                                                                                             |                                         |
|          | PART II. OTHER INFORMATION                                                                                                                       |                                         |
|          |                                                                                                                                             |                                         |
| ITEM 1.  | Legal Proceedings                                                                                                                                |        23 |
|          |                                                                                                                                             |                                         |
| ITEM 1A. | Risk Factors                                                                                                                                     |        23 |
|          |                                                                                                                                             |                                         |
| ITEM 5.  | Other Information                                                                                                                                |        25 |
|          |                                                                                                                                             |                                         |
| ITEM 6.  | Exhibits                                                                                                                                         |        25 |
|          |                                                                                                                                             |                                         |
| Signatures    |                                                                                                                                             |        26 |

|   | Item 1.  Unaudited Consolidated Condensed Financial Statements |
|--------|-------------------------------------------------------------------------------|

|                                                                                                                                                                                   |   | September 30, 2009 |     |   | December 31, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
| Assets                                                                                                                                                                                 |   |               |     |   |              |   |
| Current assets:                                                                                                                                                                        |   |               |     |   |              |   |
| Cash and cash equivalents                                                                                                                                                              |   | $                  | 25,239   |   |              | $      | 27,393 |   |
| Accounts receivable, net of allowances for bad debts and customer credits of $1,294 and $1,277 at September 30, 2009 and December 31, 2008, respectively                               |   |               | 8,802    |   |              |   | 10,047 |   |
| Prepaid expenses and other current assets                                                                                                                                              |   |               | 744      |   |              |   | 1,378 |   |
| Total current assets                                                                                                                                                                   |   |               | 34,785   |   |              |   | 38,818 |   |
| Property and equipment, net                                                                                                                                                            |   |               | 1,348    |   |              |   | 2,421 |   |
| Investment and other assets                                                                                                                                                            |   |               | 130      |   |              |   | 763 |   |
| Total assets                                                                                                                                                                           |   | $                  | 36,263   |   |              | $      | 42,002 |   |
|                                                                                                                                                                                   |   |               |     |   |              |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                                                             |   |               |     |   |              |   |   |   |
| Current liabilities:                                                                                                                                                                   |   |               |     |   |              |   |   |   |
| Accounts payable                                                                                                                                                                       |   | $                  | 2,917    |   |              | $      | 3,579 |   |
| Accrued expenses and other current liabilities                                                                                                                                         |   |               | 3,652    |   |              |   | 6,432 |   |
| Deferred revenues                                                                                                                                                                      |   |               | 794      |   |              |   | 1,835 |   |
| Total current liabilities                                                                                                                                                              |   |               | 7,363    |   |              |   | 11,846 |   |
| Non-current liabilities                                                                                                                                                                |   |               | 108      |   |              |   | 181 |   |
| Total liabilities                                                                                                                                                                      |   |               | 7,471    |   |              |   | 12,027 |   |
| Commitments and contingencies (Note 9)                                                                                                                                                 |   |               |     |   |              |   |   |   |
| 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 and 45,184,679 and 45,219,679 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively |   |               | 45       |   |              |   | 45 |   |
| Additional paid-in capital                                                                                                                                                             |   |               | 301,512  |   |              |   | 300,720 |   |
| Unrealized gain from investment                                                                                                                                                        |   |               | —  |   |              |   | 568 |   |
| Accumulated deficit                                                                                                                                                                    |   |               | (272,765 | )      |              |   | (271,358 | ) |
| Total stockholders’ equity                                                                                                                                                       |   |               | 28,792   |   |              |   | 29,975 |   |
| Total liabilities and stockholders’ equity                                                                                                                                       |   | $                  | 36,263   |   |              | $      | 42,002 |   |
|                                                                                                                                                                                   |   |               |     |   |              |   |   |   |

|                                                                                                                                                                                                                  |   | Three Months Ended September 30, |    |   | Nine Months Ended September 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                  |   | 2009                             |    |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
| Net revenues:                                                                                                                                                                                                         |   |                             |    |   |                            |   |   |   |   |   |   |   |
| Lead fees                                                                                                                                                                                                             |   | $                                | 11,695  |   |                            | $      | 15,571 |   |   | $ | 35,431 |   |   | $ | 50,910 |   |
| Advertising                                                                                                                                                                                                           |   |                             | 1,627   |   |                            |   | 1,640 |   |   |   | 5,100 |   |   |   | 5,906 |   |
| Other revenues                                                                                                                                                                                                        |   |                             | 32      |   |                            |   | 59 |   |   |   | 138 |   |   |   | 137 |   |
| Total net revenues                                                                                                                                                                                                    |   |                             | 13,354  |   |                            |   | 17,270 |   |   |   | 40,669 |   |   |   | 56,953 |   |
| Cost of revenues (excludes depreciation of $225 and $318 for the three months ended September 30, 2009 and 2008, respectively and $859 and $1,102 for the nine months ended September 30 2009 and 2008, respectively) |   |                             | 8,614   |   |                            |   | 11,107 |   |   |   | 26,523 |   |   |   | 37,146 |   |
| Gross profit                                                                                                                                                                                                          |   |                             | 4,740   |   |                            |   | 6,163 |   |   |   | 14,146 |   |   |   | 19,807 |   |
|                                                                                                                                                                                                                  |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                                                                                                                                   |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Sales and marketing                                                                                                                                                                                                   |   |                             | 2,387   |   |                            |   | 4,001 |   |   |   | 7,568 |   |   |   | 13,516 |   |
| Technology support                                                                                                                                                                                                    |   |                             | 1,357   |   |                            |   | 3,651 |   |   |   | 4,044 |   |   |   | 11,924 |   |
| General and administrative                                                                                                                                                                                            |   |                             | 2,409   |   |                            |   | 4,593 |   |   |   | 9,495 |   |   |   | 15,328 |   |
| Patent litigation settlement                                                                                                                                                                                          |   |                             | (2      | )      |                            |   | — |   |   |   | (2,848 | ) |   |   | (2,667 | ) |
| Goodwill impairment                                                                                                                                                                                                   |   |                             | — |   |                            |   | — |   |   |   | — |   |   |   | 52,074 |   |
| Total operating expenses                                                                                                                                                                                              |   |                             | 6,151   |   |                            |   | 12,245 |   |   |   | 18,259 |   |   |   | 90,175 |   |
|                                                                                                                                                                                                                  |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                                                                                                                                                                                        |   |                             | (1,411  | )      |                            |   | (6,082 | ) |   |   | (4,113 | ) |   |   | (70,368 | ) |
|                                                                                                                                                                                                                  |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest and other income                                                                                                                                                                                             |   |                             | 94      |   |                            |   | 271 |   |   |   | 915 |   |   |   | 1,116 |   |
| Provision for income taxes                                                                                                                                                                                            |   |                             | 124     |   |                            |   | — |   |   |   | 124 |   |   |   | — |   |
| Loss from continuing operations                                                                                                                                                                                       |   |                             | (1,441  | )      |                            |   | (5,811 | ) |   |   | (3,322 | ) |   |   | (69,252 | ) |
| Discontinued operations, net                                                                                                                                                                                          |   |                             | 642     |   |                            |   | 184 |   |   |   | 1,915 |   |   |   | 4,390 |   |
| Net loss                                                                                                                                                                                                              |   | $                                | (799    | )      |                            | $      | (5,627 | ) |   | $ | (1,407 | ) |   | $ | (64,862 | ) |
|                                                                                                                                                                                                                  |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share:                                                                                                                                                                              |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                                                                                                                                                                       |   | $                                | (0.03   | )      |                            | $      | (0.13 | ) |   | $ | (0.07 | ) |   | $ | (1.57 | ) |
| Discontinued operations, net                                                                                                                                                                                          |   |                             | 0.01    |   |                            |   | — |   |   |   | 0.04 |   |   |   | 0.10 |   |
| Basic and diluted loss per common share                                                                                                                                                                               |   | $                                | (0.02   | )      |                            | $      | (0.13 | ) |   | $ | (0.03 | ) |   | $ | (1.47 | ) |
|                                                                                                                                                                                                                  |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss:                                                                                                                                                                                                   |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                                                                                              |   | $                                | (799    | )      |                            | $      | (5,627 | ) |   | $ | (1,407 | ) |   | $ | (64,862 | ) |
| Unrealized gain/(loss) from investment                                                                                                                                                                                |   |                             | — |   |                            |   | 33 |   |   |   | — |   |   |   | (6 | ) |
| Comprehensive loss                                                                                                                                                                                                    |   | $                                | (799    | )      |                            | $      | (5,594 | ) |   | $ | (1,407 | ) |   | $ | (64,868 | ) |
|                                                                                                                                                                                                                  |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                             |   |                            |    |   |   |   |
|--------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|--------|--------|
|                                                                                             |   | Nine Months Ended September 30, |    |
|                                                                                             |   | 2009                            |    |   | 2008   |   |
| Cash flows from operating activities:                                                            |   |                            |    |   |   |   |
| Net loss                                                                                         |   | $                               | (1,407  | )      |   | $      | (64,862 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                      |   |                            |    |   |   |   |   |   |
| Depreciation and amortization                                                                    |   |                            | 1,258   |   |   |   | 3,551 |   |
| Provision for bad debts                                                                          |   |                            | 864     |   |   |   | 673 |   |
| Provision for customer credits                                                                   |   |                            | 729     |   |   |   | 792 |   |
| Gain on sale of AVV business                                                                     |   |                            | (1,772  | )      |   |   | (4,204 | ) |
| Share-based compensation                                                                         |   |                            | 792     |   |   |   | 2,129 |   |
| Loss on goodwill impairment                                                                      |   |                            | — |   |   |   | 52,074 |   |
| Changes in assets and liabilities:                                                               |   |                            |    |   |   |   |   |   |
| Accounts receivable                                                                              |   |                            | (348    | )      |   |   | (2,364 | ) |
| Prepaid expenses and other current assets                                                        |   |                            | 634     |   |   |   | (44 | ) |
| Investment and other non-current assets                                                          |   |                            | (569    | )      |   |   | 84 |   |
| Accounts payable                                                                                 |   |                            | (662    | )      |   |   | (1,826 | ) |
| Accrued expenses and other liabilities                                                           |   |                            | (2,780  | )      |   |   | (1,456 | ) |
| Deferred revenues                                                                                |   |                            | (1,041  | )      |   |   | 338 |   |
| Non-current liabilities                                                                          |   |                            | (73     | )      |   |   | (107 | ) |
| Net cash used in operating activities                                                            |   |                            | (4,375  | )      |   |   | (15,222 | ) |
|                                                                                             |   |                            |    |   |   |   |   |   |
| Cash flows from investing activities:                                                            |   |                            |    |   |   |   |   |   |
| Maturities of short-term investments                                                             |   |                            | — |   |   |   | 14,050 |   |
| Purchases of short-term investments                                                              |   |                            | — |   |   |   | (14,050 | ) |
| Purchases of property and equipment                                                              |   |                            | (131    | )      |   |   | (2,254 | ) |
| Proceeds from sale of AVV business                                                               |   |                            | 1,772   |   |   |   | 21,396 |   |
| Proceeds from sale of available-for-sale investment                                              |   |                            | 580     |   |   |   | — |   |
| Net cash provided by investing activities                                                        |   |                            | 2,221   |   |   |   | 19,142 |   |
|                                                                                             |   |                            |    |   |   |   |   |   |
| Cash flows from financing activities:                                                            |   |                            |    |   |   |   |   |   |
| Proceeds from exercise of stock options and awards issued under the employee stock purchase plan |   |                            | — |   |   |   | 649 |   |
| Net cash provided by financing activities                                                        |   |                            | — |   |   |   | 649 |   |
|                                                                                             |   |                            |    |   |   |   |   |   |
| Net (decrease)/increase in cash and cash equivalents                                             |   |                            | (2,154  | )      |   |   | 4,569 |   |
| Cash and cash equivalents, beginning of period                                                   |   |                            | 27,393  |   |   |   | 27,601 |   |
| Cash and cash equivalents, end of period                                                         |   | $                               | 25,239  |   |   | $      | 32,170 |   |

|                                                   |   |                            |       |   |                           |   |       |   |   |   |       |   |
|--------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                   |   | Three Months EndedSeptember 30, |       |   | Nine Months EndedSeptember 30, |   |
|                                                   |   | 2009                            |       |   | 2008                           |   |       | 2009   |   |   | 2008       |   |
| Basic and diluted shares:                              |   |                            |       |   |                           |   |       |   |   |   |       |   |
| Weighted average common shares outstanding             |   |                            | 44,958,840 |   |                           |   | 44,194,668 |   |   |   | 44,957,194 |   |   |   | 44,031,077 |   |
| Weighted average unvested restricted stock outstanding |   |                            | (456,679   | )      |                           |   | (11,087    | )      |   |   | (456,679   | )      |   |   | (3,723 | ) |
| Basic and dilutive shares                              |   |                            | 44,502,161 |   |                           |   | 44,183,581 |   |   |   | 44,500,515 |   |   |   | 44,027,354 |   |

|                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |
|--------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                 |   | Three Months EndedSeptember 30, |   |   | Nine Months EndedSeptember 30, |   |
|                                 |   | 2009                            |   |   | 2008                           |   |   | 2009   |   |   | 2008   |   |
|                                 |   | (in thousands)                  |   |
| Cost of revenues                     |   | $                               | 7      |   |                           | $      | 21     |   |   | $      | 20     |   |   | $ | 77 |   |
| Sales and marketing                  |   |                            | 85     |   |                           |   | 165    |   |   |   | 257    |   |   |   | 554 |   |
| Technology support                   |   |                            | 25     |   |                           |   | 45     |   |   |   | 68     |   |   |   | 295 |   |
| General and administrative (a)  |   |                            | 150    |   |                           |   | 330    |   |   |   | 447    |   |   |   | 1,203 |   |
| Total share-based compensation costs |   | $                               | 267    |   |                           | $      | 561    |   |   | $      | 792    |   |   | $ | 2,129 |   |

|                    | Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, |
|-------------------------|-------------------------------------------|------------------------------------------|
|                    | 2009                                      | 2008                                     | 2009 | 2008 |
| Dividend yield          | —                                   | —                                  | — | — |
| Volatility              | 80%                                       | 62%                                      | 75% | 62% |
| Risk-free interest rate | 2.2%                                      | 3.0%                                     | 1.7% | 2.9% |
| Expected life (years)   | 4.1                                       | 4.1                                      | 4.1 | 4.1 |

|                                                   |   |              |    |   |                  |   |
|--------------------------------------------------------|--------|-------------------|---------|--------|-----------------------|--------|
|                                                   |   | September 30,2009 |    |   | December 31,2008 |   |
|                                                   |   | (in thousands)    |    |
| Computer software and hardware                         |   | $                 | 9,181   |   |                  | $      | 9,138 |   |
| Furniture and equipment                                |   |              | 1,439   |   |                  |   | 1,715 |   |
| Leasehold improvements                                 |   |              | 949     |   |                  |   | 1,249 |   |
| Capitalized internal use software                      |   |              | 912     |   |                  |   | 912 |   |
|                                                   |   |              | 12,481  |   |                  |   | 13,014 |   |
| Less – Accumulated depreciation and amortization |   |              | (11,133 | )      |                  |   | (10,593 | ) |
|   Property and Equipment, net                     |   | $                 | 1,348   |   |                  | $      | 2,421 |   |

| Concentration of Credit Risk and Risks Due to Significant Customers |
|---------------------------------------------------------------------|

|                                                 |   | September 30, 2009 |   |   | December 31, 2008 |   |
|------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                 |   | (in thousands)     |   |
|                                                 |   |               |   |
| Compensation and related costs                       |   | $                  | 2,395  |   |              | $      | 2,288 |   |
| Accrued severance                                    |   |               | 62     |   |              |   | 2,614 |   |
| Professional fees                                    |   |               | 14     |   |              |   | 340 |   |
| Other accrued expenses                               |   |               | 454    |   |              |   | 261 |   |
| Amounts due to customers                             |   |               | 535    |   |              |   | 583 |   |
| Outstanding checks                                   |   |               | 155    |   |              |   | 143 |   |
| Employee benefits                                    |   |               | 33     |   |              |   | 36 |   |
| Other current liabilities                            |   |               | 4      |   |              |   | 167 |   |
| Total accrued expenses and other current liabilities |   | $                  | 3,652  |   |              | $      | 6,432 |   |

|                                                                              |   |                             |          |   |                            |   |          |   |   |   |          |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------|---------------|--------|---------------------------------|--------|---------------|--------|--------|--------|---------------|--------|
|                                                                              |   | Three Months Ended September 30, |          |   | Nine Months Ended September 30, |   |
|                                                                              |   | 2009                             |          |   | 2008                            |   |          | 2009   |   |   | 2008          |   |
|                                                                              |   | (in thousands)                   |          |
|                                                                              |   |                             |          |   |                            |   |          |   |   |   |          |   |
| Total net revenues:                                                               |   | $                                | —       |   |                            | $      | —       |   |   | $      | —       |   |   | $ | 568 |   |
| Cost of revenues                                                                  |   |                             | —       |   |                            |   | —       |   |   |   | —       |   |   |   | — |   |
| Gross profit                                                                      |   |                             | —  |   |                            |   | —  |   |   |   | —  |   |   |   | 568 |   |
|                                                                              |   |                             |          |   |                            |   |          |   |   |   |          |   |   |   |   |   |
| Operating expenses:                                                               |   |                             |          |   |                            |   |          |   |   |   |          |   |   |   |   |   |
|      Sales and marketing                                 |   |                             | —       |   |                            |   | —       |   |   |   | —       |   |   |   | 150 |   |
|      Technology support                                  |   |                             | —       |   |                            |   | —       |   |   |   | —       |   |   |   | 114 |   |
|      General and administrative                          |   |                             | —       |   |                            |   | —       |   |   |   | —       |   |   |   | 53 |   |
|           Total operating costs |   |                             | —       |   |                            |   | —       |   |   |   | —       |   |   |   | 317 |   |
|                                                                              |   |                             |          |   |                            |   |          |   |   |   |          |   |   |   |   |   |
|      Gain on sale                                        |   |                             | 499           |   |                            |   | —       |   |   |   | 1,772         |   |   |   | 4,204 |   |
|      (Benefit)/provision for income taxes                |   |                             | (143          | )      |                            |   | (184          | )      |   |   | (143          | )      |   |   | 65 |   |
| Discontinued operations, net                                                      |   | $                                | 642           |   |                            | $      | 184           |   |   | $      | 1,915         |   |   | $ | 4,390 |   |

|   | Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|--------|---------------------------------------------------------------------------------------------------------------------|

| ·   | 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.  These economic conditions have affected the automotive industry, which is currently experiencing what is considered to be the most challengingenvironment of the past several decades: |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | North American vehicle sales have decreased significantly, |
|--------------------|------------------------------------------------------------|

| ·   | Dealer consolidations, closings, and bankruptcies have increased significantly, |
|--------------------|---------------------------------------------------------------------------------|

| ·   | General Motors and Chrysler filed for and emerged from bankruptcy in 2009, and |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Auto sales in the United States are expected to continue to remain at low levels throughout 2009 and into 2010. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | The market for Leads, including: |
|--------------------|----------------------------------|

| ·   | The effects of competition and Lead sourcing (i.e., Leads from our owned web sites versus Leads acquired from third parties) on our supply and acquisition costs of quality Leads and the resulting effects on sales, pricing and margins for our services and products, and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A declining Dealer base and a corresponding decline in the number of Leads delivered to our Dealers in the aggregate. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

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

| ·   | Variations in spending by manufacturers and others for our advertising services, |
|--------------------|----------------------------------------------------------------------------------|

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

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

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

| ·   | The effects of the U.S. Government sponsored “cash-for-clunkers” incentive program in the third quarter 2009, including the impact on Lead sales and advertising services in the third quarter, as well as the potential near-term impact on future vehicle purchases and advertising. These government incentives may have accelerated future vehiclesales into the third quarter of 2009, which reduced dealer inventories and potential vehicle purchasers in the near-term, which may negatively impact future supply of Leads, at least in the fourth quarter of 2009. Although the cash-for-clunkers program resulted in higher traffic to our Web sites during the third quarter of 2009,  advertisers’ budgets with Autobytel did not increase much from prior periods and their spend in other areas may adversely impact their future advertising spend with Autobytel,at least in the fourth quarter of 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                           |   |                               |   |   | Change                  |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|-------------------------|--------|
|                                                                                                                           |   | 2009                               |   |   | % of Total net revenues |   |   | 2008 |   |   | % of Total net revenues |   |   |  $ |   |   |   | % |   |
|                                                                                                                           |   | ($ amounts in thousands) |   |   |                    |   |   |   |   |   |
| Net revenues:                                                                                                                  |   |                               |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Lead Fees                                                                                                                      |   | $                                  | 11,695 |   |                    |   | 88 | % |   | $ | 15,571 |   |   |   | 90 | % |   | $ | (3,876 | ) |   |   | (25 | )% |
| Advertising                                                                                                                    |   |                               | 1,627  |   |                    |   | 12 |   |   |   | 1,640 |   |   |   | 10 |   |   |   | (13 | ) |   |   | (1 | ) |
| Other                                                                                                                          |   |                               | 32     |   |                    |   | — |   |   |   | 59 |   |   |   | — |   |   |   | (27 | ) |   |   | (46 | ) |
|                                                                                                                           |   |                               |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net revenues                                                                                                             |   |                               | 13,354 |   |                    |   | 100 |   |   |   | 17,270 |   |   |   | 100 |   |   |   | (3,916 | ) |   |   | (23 | ) |
| Cost of revenues (excludes depreciation of $225 and $318 for the three months ended September 30, 2009 and 2008, respectively) |   |                               | 8,614  |   |                    |   | 65 |   |   |   | 11,107 |   |   |   | 64 |   |   |   | (2,493 | ) |   |   | (22 | ) |
| Gross profit                                                                                                                   |   |                               | 4,740  |   |                    |   | 35 |   |   |   | 6,163 |   |   |   | 36 |   |   |   | (1,423 | ) |   |   | (23 | ) |
|                                                                                                                           |   |                               |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                                            |   |                               |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales and marketing                                                                                                            |   |                               | 2,387  |   |                    |   | 18 |   |   |   | 4,001 |   |   |   | 23 |   |   |   | (1,614 | ) |   |   | (40 | ) |
| Technology support                                                                                                             |   |                               | 1,357  |   |                    |   | 10 |   |   |   | 3,651 |   |   |   | 21 |   |   |   | (2,294 | ) |   |   | (63 | ) |
| General and administrative                                                                                                     |   |                               | 2,409  |   |                    |   | 18 |   |   |   | 4,593 |   |   |   | 27 |   |   |   | (2,184 | ) |   |   | (48 | ) |
| Patent litigation settlement                                                                                                   |   |                               | (2     | )      |                    |   | — |   |   |   | — |   |   |   | — |   |   |   | (2 | ) |   |   | — |   |
| Total operating expenses                                                                                                       |   |                               | 6,151  |   |                    |   | 46 |   |   |   | 12,245 |   |   |   | 71 |   |   |   | (6,094 | ) |   |   | (50 | ) |
|                                                                                                                           |   |                               |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                                                                                                 |   | $                                  | (1,411 | )      |                    |   | (11 | )% |   | $ | (6,082 | ) |   |   | (35 | )% |   | $ | 4,671 |   |   |   | (77 | )% |

| ·   | a 12% decline in the total volume of new and used car sales Leads delivered, which was due to a 35% net reduction in the number of auto-dealer customers, partially offset by an increase in the number of Leads delivered per customer, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a 9% decline in our average sales price per Lead (6%, excluding OEM customers), was due primarily to continued pressures on pricing from our retail, and particularly our OEM customers, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The U.S. Government sponsored “cash-for-clunkers” incentive program generated relatively significant sales for automotive-dealers during the third quarter of 2009, but it had a mixed impact on Autobytel.  Although we experienced increased Leads delivered per dealer as a result of the program during the quarter, overall dealer demandfor our Lead programs decreased, reflected by fewer new dealers, as certain dealers felt that they had a sufficient volume of customers through increased on-line and showroom traffic. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                           |   |                               |    |   | Change                  |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|---------|--------|-------------------------|--------|
|                                                                                                                           |   | 2009                               |    |   | % of Total net revenues |   |   | 2008 |   |   | % of Total net revenues |   |   |  $ |   |   |   | % |   |
|                                                                                                                           |   | ($ amounts in thousands) |    |   |                    |   |   |   |   |   |
| Net revenues:                                                                                                                  |   |                               |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Lead Fees                                                                                                                      |   | $                                  | 35,431  |   |                    |   | 87 | % |   | $ | 50,910 |   |   |   | 89 | % |   | $ | (15,479 | ) |   |   | (30 | )% |
| Advertising                                                                                                                    |   |                               | 5,100   |   |                    |   | 13 |   |   |   | 5,906 |   |   |   | 11 |   |   |   | (806 | ) |   |   | (14 | ) |
| Other                                                                                                                          |   |                               | 138     |   |                    |   | — |   |   |   | 137 |   |   |   | — |   |   |   | 1 |   |   |   | 1 |   |
|                                                                                                                           |   |                               |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net revenues                                                                                                             |   |                               | 40,669  |   |                    |   | 100 |   |   |   | 56,953 |   |   |   | 100 |   |   |   | (16,284 | ) |   |   | (29 | ) |
| Cost of revenues (excludes depreciation of $859 and $1,102 for the nine months ended September 30 2009 and 2008, respectively) |   |                               | 26,523  |   |                    |   | 65 |   |   |   | 37,146 |   |   |   | 65 |   |   |   | (10,623 | ) |   |   | (29 | ) |
| Gross profit                                                                                                                   |   |                               | 14,146  |   |                    |   | 35 |   |   |   | 19,807 |   |   |   | 35 |   |   |   | (5,661 | ) |   |   | (29 | ) |
|                                                                                                                           |   |                               |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                                            |   |                               |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales and marketing                                                                                                            |   |                               | 7,568   |   |                    |   | 19 |   |   |   | 13,516 |   |   |   | 24 |   |   |   | (5,948 | ) |   |   | (44 | ) |
| Technology support                                                                                                             |   |                               | 4,044   |   |                    |   | 10 |   |   |   | 11,924 |   |   |   | 21 |   |   |   | (7,880 | ) |   |   | (66 | ) |
| General and administrative                                                                                                     |   |                               | 9,495   |   |                    |   | 23 |   |   |   | 15,328 |   |   |   | 27 |   |   |   | (5,833 | ) |   |   | (38 | ) |
| Patent litigation settlement                                                                                                   |   |                               | (2,848  | )      |                    |   | (7 | ) |   |   | (2,667 | ) |   |   | (5 | ) |   |   | (181 | ) |   |   | 7 |   |
| Goodwill impairment                                                                                                            |   |                               | — |   |                    |   | — |   |   |   | 52,074 |   |   |   | 91 |   |   |   | (52,074 | ) |   |   | (100 | ) |
| Total operating expenses                                                                                                       |   |                               | 18,259  |   |                    |   | 45 |   |   |   | 90,175 |   |   |   | 158 |   |   |   | (71,916 | ) |   |   | (80 | ) |
|                                                                                                                           |   |                               |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                                                                                                 |   | $                                  | (4,113  | )      |                    |   | (10 | )% |   | $ | (70,368 | ) |   |   | (124 | )% |   | $ | 66,255 |   |   |   | (94 | )% |

| ·   | a 16% decline in the total volume of new and used car sales Leads delivered, which was due to a 35% net reduction in the number of automotive customers, including one of our large OEM customers, partially offset by a increase in the number of Leads delivered per customer. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a 12% decline in our average sales price per Lead (11%, excluding OEM customers), which was due primarily to sales incentives provided to new and existing auto-dealer customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | Nine Months Ended September 30, |    |
|-------------------------------------------|--------|---------------------------------|---------|
|                                      |   | 2009                            |    |   | 2008 |   |
|                                      |   | (in thousands)                  |    |
| Net cash used in operating activities     |   | $                               | (4,375  | ) |   | $ | (15,222 | ) |
| Net cash provided by investing activities |   |                            | 2,221   |   |   |   | 19,142 |   |
| Net cash provided by financing activities |   |                            | — |   |   |   | 649 |   |

| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|--------------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|--------------|-------------------------|

|   | Item 1.  Legal Proceedings |
|--------|-------------------------------------------|

|   | Item 1A.  Risk Factors |
|--------|---------------------------------------|

| ·   | North American vehicle sales have decreased significantly, |
|--------------------|------------------------------------------------------------|

| ·   | Dealer consolidations, closings, and bankruptcies have increased significantly, |
|--------------------|---------------------------------------------------------------------------------|

| ·   | General Motors and Chrysler filed for and emerged from bankruptcy in 2009, and |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Auto sales in the United States are expected to continue to remain at low levels throughout 2009 and into 2010. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 SEC on January 29, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 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 Amendedand 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, and Amended Certificate of Designation of Series A Junior Participating Preferred Stock dated April 24, 2009 is incorporated herein by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the period ended March 31, 2009 filed with the SEC on April 24, 2009. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.2*   | Second Amended and Restated Bylaws dated August 1, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.1    | Form of Common Stock Certificate of Autobytel is incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q for the period ended September 30, 2001 filed with the SEC on November 14, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.2    | 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 RightCertificate as Exhibit B and the Summary of Rights to Purchase Preferred Shares as Exhibit C) is incorporated herein by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q for the period ended March 31, 2009 filed with the SEC on April 24, 2009.                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1*  | Chief Executive Officer Section 302 Certification of Periodic Report, dated October 23, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.2*  | Chief Financial Officer Section 302 Certification of Periodic Report, dated October 23, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1*  | Chief Executive Officer and Chief Financial Officer Section 906 Certification of Periodic Report, dated October 23, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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

|   |   |           |   |                                                      |
|--------|--------|----------------|--------|-----------------------------------------------------------|
|   |   | AUTOBYTEL INC. |
|   |   |           |   |                                                      |
|   |   |           | By:    | /s/ Curtis E. DeWalt                                      |
|   |   |           |   | Curtis E. DeWalt                                          |
|   |   |           |   | Senior Vice President and Chief Financial Officer         |
|   |   |           |   | (Duly Authorized Officer and Principal Financial Officer) |

|                   |   |   |   |                           |
|------------------------|--------|--------|--------|--------------------------------|
| Date: October 23, 2009 |   |   |
|                   |   |   |   |                           |
|                   |   |   | By:    | /s/ Wesley Ozima               |
|                   |   |   |   | Wesley Ozima                   |
|                   |   |   |   | Vice President and Controller  |
|                   |   |   |   | (Principal Accounting Officer) |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 SEC on January 29, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 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 Amendedand 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, and Amended Certificate of Designation of Series A Junior Participating Preferred Stock dated April 24, 2009 is incorporated herein by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the period ended March 31, 2009 filed with the SEC on April 24, 2009. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.2*   | Second Amended and Restated Bylaws dated August 1, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.1    | Form of Common Stock Certificate of Autobytel is incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q for the period ended September 30, 2001 filed with the SEC on November 14, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.2    | 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 RightCertificate as Exhibit B and the Summary of Rights to Purchase Preferred Shares as Exhibit C) is incorporated herein by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q for the period ended March 31, 2009 filed with the SEC on April 24, 2009.                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1*  | Chief Executive Officer Section 302 Certification of Periodic Report, dated October 23, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.2*  | Chief Financial Officer Section 302 Certification of Periodic Report, dated October 23, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1*  | Chief Executive Officer and Chief Financial Officer Section 906 Certification of Periodic Report, dated October 23, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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