----

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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   ̈ | 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.  | Financial Statements                                                                                                                                                          |             |
|          |                                                                                                                                                                          |             |
|          | Unaudited Consolidated Condensed Balance Sheets as of March 31, 2011 and December 31, 2010                                                                                    | 3                |
|          |                                                                                                                                                                          |             |
|          | Unaudited Consolidated Condensed Statements of Operations and Comprehensive (Loss) Income for the Three Months Ended March 31, 2011 and the Three Months Ended March 31, 2010 | 4                |
|          |                                                                                                                                                                          |             |
|          | Unaudited Consolidated Condensed Statements of Cash Flows for the Three Months Ended March 31, 2011 and the Three Months Ended March 31, 2010                                 | 5                |
|          |                                                                                                                                                                          |             |
|          | Notes to Unaudited Consolidated Condensed Financial Statements                                                                                                                | 6                |
|          |                                                                                                                                                                          |             |
| ITEM 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                   | 16               |
|          |                                                                                                                                                                          |             |
| ITEM 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                    | 20               |
|          |                                                                                                                                                                          |             |
| ITEM 4.  | Controls and Procedures                                                                                                                                                       | 20               |
|          |                                                                                                                                                                          |             |
|          | PART II. OTHER INFORMATION                                                                                                                                                    |             |
|          |                                                                                                                                                                          |             |
| ITEM 1.  | Legal Proceedings                                                                                                                                                             | 21               |
|          |                                                                                                                                                                          |             |
| ITEM 1A. | Risk Factors                                                                                                                                                                  | 21               |
|          |                                                                                                                                                                          |             |
| ITEM 6.  | Exhibits                                                                                                                                                                      | 23               |
|          |                                                                                                                                                                          |             |
|          |         Signatures                                                                                                                         | 24               |

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table of contents

|   | Item 1.  Financial Statements |
|--------|----------------------------------------------|

UNAUDITED

|                                                                                                                                                                            |   | March 31, |     |   | December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------|--------|--------------|--------|
|                                                                                                                                                                            |   | 2011      |     |   | 2010         |   |
| Assets                                                                                                                                                                          |   |      |     |   |         |   |
| Current assets:                                                                                                                                                                 |   |      |     |   |         |   |
| Cash and cash equivalents                                                                                                                                                       |   | $         | 7,531    |   |         | $      | 8,819 |   |
| Restricted cash                                                                                                                                                                 |   |      | 400      |   |         |   | 400 |   |
| Accounts receivable, (net of allowances for bad debts and customer credits of $431 and $621 at March 31, 2011 and December 31, 2010, respectively)                              |   |      | 9,949    |   |         |   | 9,067 |   |
| Prepaid expenses and other current assets                                                                                                                                       |   |      | 558      |   |         |   | 797 |   |
| Total current assets                                                                                                                                                            |   |      | 18,438   |   |         |   | 19,083 |   |
| Property and equipment, net                                                                                                                                                     |   |      | 1,820    |   |         |   | 1,733 |   |
| Long-term strategic investment                                                                                                                                                  |   |      | 1,000    |   |         |   | 1,000 |   |
| Intangible assets, net                                                                                                                                                          |   |      | 3,919    |   |         |   | 4,258 |   |
| Goodwill                                                                                                                                                                        |   |      | 11,677   |   |         |   | 11,677 |   |
| Other assets                                                                                                                                                                    |   |      | 81       |   |         |   | 81 |   |
| Total assets                                                                                                                                                                    |   | $         | 36,935   |   |         | $      | 37,832 |   |
| Liabilities and Stockholders’ Equity                                                                                                                                      |   |      |     |   |         |   |   |   |
| Current liabilities:                                                                                                                                                            |   |      |     |   |         |   |   |   |
| Accounts payable                                                                                                                                                                |   | $         | 4,197    |   |         | $      | 3,713 |   |
| Accrued expenses and other current liabilities                                                                                                                                  |   |      | 3,718    |   |         |   | 4,995 |   |
| Deferred revenues                                                                                                                                                               |   |      | 418      |   |         |   | 564 |   |
| Total current liabilities                                                                                                                                                       |   |      | 8,333    |   |         |   | 9,272 |   |
| Convertible note payable                                                                                                                                                        |   |      | 5,000    |   |         |   | 5,000 |   |
| Other non-current liabilities                                                                                                                                                   |   |      | 554      |   |         |   | 457 |   |
| Total liabilities                                                                                                                                                               |   |      | 13,887   |   |         |   | 14,729 |   |
| Commitments and contingencies (Note 8)                                                                                                                                          |   |      |     |   |         |   |   |   |
| 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 46,040,645 and 45,689,062 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively |   |      | 46       |   |         |   | 46 |   |
| Additional paid-in capital                                                                                                                                                      |   |      | 305,872  |   |         |   | 305,356 |   |
| Accumulated deficit                                                                                                                                                             |   |      | (282,870 | )      |         |   | (282,299 | ) |
| Total stockholders’ equity                                                                                                                                                |   |      | 23,048   |   |         |   | 23,103 |   |
| Total liabilities and stockholders’ equity                                                                                                                                |   | $         | 36,935   |   |         | $      | 37,832 |   |

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UNAUDITED 

|                                                                                                                      |   | Three Months Ended March 31, |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                      |   | 2011                         |   |   | 2010 |   |
| Revenues:                                                                                                                 |   |                         |   |   |   |   |
| Purchase requests                                                                                                         |   | $                            | 14,964 |   |   | $ | 10,733 |   |
| Advertising                                                                                                               |   |                         | 1,001  |   |   |   | 1,054 |   |
| Other revenues                                                                                                            |   |                         | 67     |   |   |   | 26 |   |
| Total net revenues                                                                                                        |   |                         | 16,032 |   |   |   | 11,813 |   |
| Cost of revenues (excludes depreciation of $55 and $192 for the three months ended March 31, 2011 and 2010, respectively) |   |                         | 9,872  |   |   |   | 7,065 |   |
| Gross profit                                                                                                              |   |                         | 6,160  |   |   |   | 4,748 |   |
| Operating expenses:                                                                                                       |   |                         |   |   |   |   |   |   |
| Sales and marketing                                                                                                       |   |                         | 2,419  |   |   |   | 2,753 |   |
| Technology support                                                                                                        |   |                         | 1,725  |   |   |   | 1,240 |   |
| General and administrative                                                                                                |   |                         | 2,084  |   |   |   | 2,696 |   |
| Depreciation and amortization                                                                                             |   |                         | 446    |   |   |   | 189 |   |
| Patent litigation settlement                                                                                              |   |                         | (67    | ) |   |   | (2,763 | ) |
| Total operating expenses                                                                                                  |   |                         | 6,607  |   |   |   | 4,115 |   |
|                                                                                                                      |   |                         |   |   |   |   |   |   |
| Operating (loss) income                                                                                                   |   |                         | (447   | ) |   |   | 633 |   |
| Interest and other income, net                                                                                            |   |                         | 9      |   |   |   | 177 |   |
| (Loss) income before income tax provision                                                                                 |   |                         | (438   | ) |   |   | 810 |   |
| Income tax provision                                                                                                      |   |                         | 133    |   |   |   | 13 |   |
| Net (loss) income and comprehensive (loss) income                                                                         |   | $                            | (571   | ) |   | $ | 797 |   |
|                                                                                                                      |   |                         |   |   |   |   |   |   |
| Basic (loss) earnings per common share                                                                                    |   | $                            | (0.01  | ) |   | $ | 0.02 |   |
| Diluted (loss) earnings per common share                                                                                  |   | $                            | (0.01  | ) |   | $ | 0.02 |   |
|                                                                                                                      |   |                         |   |   |   |   |   |   |
| Shares used in computing net (loss) earnings per common share (in thousands):                                             |   |                         |   |   |   |   |   |   |
|      Basic                                                                                       |   |                         | 45,676 |   |   |   | 44,803 |   |
|      Diluted                                                                                     |   |                         | 45,676 |   |   |   | 45,992 |   |

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UNAUDITED 

|                                                                                               |   |                         |    |   |   |   |
|----------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|--------|--------|
|                                                                                               |   | Three Months Ended March 31, |    |
|                                                                                               |   | 2011                         |    |   | 2010   |   |
| Cash flows from operating activities:                                                              |   |                         |    |   |   |   |
| Net (loss) income                                                                                  |   | $                            | (571    | )      |   | $      | 797 |   |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |   |                         |    |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                         | 510     |   |   |   | 322 |   |
| Provision for bad debts                                                                            |   |                         | 46      |   |   |   | 75 |   |
| Provision for customer credits                                                                     |   |                         | 188     |   |   |   | 174 |   |
| Share-based compensation                                                                           |   |                         | 227     |   |   |   | 242 |   |
| Changes in assets and liabilities:                                                                 |   |                         |    |   |   |   |   |   |
| Accounts receivable                                                                                |   |                         | (1,116  | )      |   |   | 780 |   |
| Prepaid expenses and other current assets                                                          |   |                         | 239     |   |   |   | 33 |   |
| Other non-current assets                                                                           |   |                         | — |   |   |   | (15 | ) |
| Accounts payable                                                                                   |   |                         | 484     |   |   |   | 210 |   |
| Accrued expenses and other liabilities                                                             |   |                         | (1,194  | )      |   |   | (1,039 | ) |
| Deferred revenues                                                                                  |   |                         | (146    | )      |   |   | (173 | ) |
| Non-current liabilities                                                                            |   |                         | 97      |   |   |   | (25 | ) |
| Net cash (used in) provided by operating activities                                                |   |                         | (1,236  | )      |   |   | 1,381 |   |
| Cash flows from investing activities:                                                              |   |                         |    |   |   |   |   |   |
| Purchases of property and equipment                                                                |   |                         | (258    | )      |   |   | (417 | ) |
| Net cash used in investing activities                                                              |   |                         | (258    | )      |   |   | (417 | ) |
| Cash flows from financing activities:                                                              |   |                         |    |   |   |   |   |   |
| Proceeds from exercise of stock options                                                            |   |                         | 289     |   |   |   | — |   |
|           Payment of contingent fee arrangement  |   |                         | (83     | )      |   |   | — |   |
| Net cash provided by financing activities                                                          |   |                         | 206     |   |   |   | — |   |
| Net (decrease) increase in cash and cash equivalents                                               |   |                         | (1,288  | )      |   |   | 964 |   |
| Cash and cash equivalents, beginning of period                                                     |   |                         | 8,819   |   |   |   | 25,097 |   |
| Cash and cash equivalents, end of period                                                           |   | $                            | 7,531   |   |   | $      | 26,061 |   |

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NOTES 

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

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

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

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

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|                                      |   | Three Months EndedMarch 31, 2010 |   |
|-------------------------------------------|--------|----------------------------------|--------|
|                                      |   | (in thousands)                   |   |
| Unaudited pro forma consolidated results: |   |                             |   |
| Revenue                                   |   | $                                | 14,347 |   |
| Net income                                |   | $                                | 500    |   |

|                                       |   |                         |       |   |   |   |
|--------------------------------------------|--------|------------------------------|------------|--------|--------|--------|
|                                       |   | Three Months Ended March 31, |       |
|                                       |   | 2011                         |       |   | 2010   |   |
| Basic shares:                              |   |                         |       |   |   |   |
| Weighted average common shares outstanding |   |                         | 45,785,045 |   |   |   | 45,168,706 |   |
| Weighted average unvested restricted stock |   |                         | (109,412   | )      |   |   | (365,881 | ) |
| Basic shares                               |   |                         | 45,675,633 |   |   |   | 44,802,825 |   |
|                                       |   |                         |       |   |   |   |   |   |
| Diluted shares:                            |   |                         |       |   |   |   |   |   |
| Basic shares                               |   |                         | 45,675,633 |   |   |   | 44,802,825 |   |
| Weighted average diluted securities        |   |                         | —    |   |   |   | 1,189,607 |   |
| Dilutive shares                            |   |                         | 45,675,633 |   |   |   | 45,992,432 |   |

|                                                           |   |                         |   |   |   |   |
|----------------------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|
|                                                           |   | Three Months Ended March 31, |   |
|                                                           |   | 2011                         |   |   | 2010   |   |
|                                                           |   |                         |   |   |   |   |
|                                                           |   | (in thousands)               |   |
| Share-based compensation expense:                              |   |                         |   |   |   |   |
|      Cost of revenues                 |   | $                            | 1      |   |   | $      | 9 |   |
|      Sales and marketing              |   |                         | 83     |   |   |   | 59 |   |
|      Technology support               |   |                         | 71     |   |   |   | 32 |   |
|      General and administrative       |   |                         | 72     |   |   |   | 142 |   |
|      Share-based compensation expense |   |                         | 227    |   |   |   | 242 |   |
|                                                           |   |                         |   |   |   |   |   |   |
| Amount capitalized to internal use software                    |   |                         | 4      |   |   |   | — |   |
| Total share-based compensation costs                           |   | $                            | 231    |   |   | $      | 242 |   |

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|                    |   | Three Months Ended March 31, |    |
|-------------------------|--------|----------------------------------------|---------|
|                    |   | 2011                                   |    |   | 2010 |   |
| Dividend yield          |   |                                   | — |   |   |   | — |   |
| Volatility              |   |                                   | 84      | % |   |   | 82 | % |
| Risk-free interest rate |   |                                   | 1.61    | % |   |   | 2.0 | % |
| Expected life (years)   |   |                                   | 4.1     |   |   |   | 4.1 |   |

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|                                                                 |   |           |    |   |         |   |
|----------------------------------------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                                                 |   | March 31,      |    |   | December 31, |   |
|                                                                 |   | 2011           |    |   | 2010         |   |
|                                                                 |   | (in thousands) |    |
| Computer software and hardware and capitalized internal use software |   | $              | 11,909  |   |         | $      | 11,651 |   |
| Furniture and equipment                                              |   |           | 1,505   |   |         |   | 1,505 |   |
| Leasehold improvements                                               |   |           | 1,024   |   |         |   | 1,024 |   |
|                                                                 |   |           | 14,438  |   |         |   | 14,180 |   |
| Less – Accumulated depreciation and amortization               |   |           | (12,618 | )      |         |   | (12,447 | ) |
| Property and equipment, net                                          |   | $              | 1,820   |   |         | $      | 1,733 |   |

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| Intangible Asset                  |   | Estimated Useful Life |
|-----------------------------------|--------|-----------------------|
| Trademarks/trade names            |   | 5 years               |
| Software and publications         |   | 3 years               |
| Customer relationships            |   | 3 years               |
| Employment/non-compete agreements |   | 5 years               |

| Year   |   | Amortization Expense |   |
|--------|--------|----------------------|--------|
|   |   | (in thousands)       |   |
|   |   |                 |   |
| 2011   |   | $                    | 1,031  |   |
| 2012   |   |                 | 1,356  |   |
| 2013   |   |                 | 1,037  |   |
| 2014   |   |                 | 286    |   |
| 2015   |   |                 | 209    |   |
|   |   | $                    | 3,919  |   |

|                                                 |   | March 31,      |   |   | December 31, |   |
|------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|
|                                                 |   | 2011           |   |   | 2010         |   |
|                                                 |   | (in thousands) |   |
| Compensation and related costs                       |   | $              | 1,247  |   |         | $      | 1,988 |   |
| Professional fees and other accrued expenses         |   |           | 1,552  |   |         |   | 2,103 |   |
| Amounts due to customers                             |   |           | 367    |   |         |   | 367 |   |
| Other current liabilities                            |   |           | 552    |   |         |   | 537 |   |
| Total accrued expenses and other current liabilities |   | $              | 3,718  |   |         | $      | 4,995 |   |

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Management’s Discussion 

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| ·   | General economic and automotive industry conditions, including: |
|--------------------|-----------------------------------------------------------------|

| ·   | The adverse effect of high unemployment on the number of vehicle purchasers; and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | The lack of available consumer credit to finance vehicle purchases. |
|--------------------|---------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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|                                                                                                                      |   |                                    |   |   |                    |   |    |   |   |   |                    |   |   |     |    |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-------------------------|--------|---------|--------|--------|--------|-------------------------|--------|--------|----------|---------|
|                                                                                                                      |   | 2011                                    |   |   | % of total net revenues |   |    | 2010   |   |   | % of total net revenues |   |   | $ Change |    |   | % Change |   |
|                                                                                                                      |   | (Dollar amounts in thousands) |   |   |                    |   |
| Revenues:                                                                                                                 |   |                                    |   |   |                    |   |    |   |   |   |                    |   |   |     |    |   |   |   |
| Purchase requests                                                                                                         |   | $                                       | 14,964 |   |                    |   | 94      | %      |   | $      | 10,733                  |   |   |     | 91      | % |   | $ | 4,231 |   |   |   | 39 | % |
| Advertising                                                                                                               |   |                                    | 1,001  |   |                    |   | 6       |   |   |   | 1,054                   |   |   |     | 9       |   |   |   | (53 | ) |   |   | (5 | ) |
| Other                                                                                                                     |   |                                    | 67     |   |                    |   | — |   |   |   | 26                      |   |   |     | — |   |   |   | 41 |   |   |   | 158 |   |
| Total net revenues                                                                                                        |   |                                    | 16,032 |   |                    |   | 100     |   |   |   | 11,813                  |   |   |     | 100     |   |   |   | 4,219 |   |   |   | 36 |   |
| Cost of revenues (excludes depreciation of $55 and $192 for the three months ended March 31, 2011 and 2010, respectively) |   |                                    | 9,872  |   |                    |   | 62      |   |   |   | 7,065                   |   |   |     | 60      |   |   |   | 2,807 |   |   |   | 40 |   |
| Gross profit                                                                                                              |   |                                    | 6,160  |   |                    |   | 38      |   |   |   | 4,748                   |   |   |     | 40      |   |   |   | 1,412 |   |   |   | 30 |   |
| Operating expenses:                                                                                                       |   |                                    |   |   |                    |   |    |   |   |   |                    |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Sales and marketing                                                                                                       |   |                                    | 2,419  |   |                    |   | 14      |   |   |   | 2,753                   |   |   |     | 23      |   |   |   | (334 | ) |   |   | (12 | ) |
| Technology support                                                                                                        |   |                                    | 1,725  |   |                    |   | 11      |   |   |   | 1,240                   |   |   |     | 10      |   |   |   | 485 |   |   |   | 39 |   |
| General and administrative                                                                                                |   |                                    | 2,084  |   |                    |   | 13      |   |   |   | 2,696                   |   |   |     | 23      |   |   |   | (612 | ) |   |   | (23 | ) |
| Depreciation and amortization                                                                                             |   |                                    | 446    |   |                    |   | 3       |   |   |   | 189                     |   |   |     | 2       |   |   |   | 257 |   |   |   | 136 |   |
| Patent litigation settlement                                                                                              |   |                                    | (67    | )      |                    |   | — |   |   |   | (2,763                  | )      |   |     | (23     | ) |   |   | 2,696 |   |   |   | (98 | ) |
| Total operating expenses                                                                                                  |   |                                    | 6,607  |   |                    |   | 41      |   |   |   | 4,115                   |   |   |     | 35      |   |   |   | 2,492 |   |   |   | 61 |   |
| Operating (loss) income                                                                                                   |   |                                    | (447   | )      |                    |   | (3      | )      |   |   | 633                     |   |   |     | 5       |   |   |   | (1,080 | ) |   |   | (171 | ) |
|        Interest and other income                                                       |   |                                    | 9      |   |                    |   | — |   |   |   | 177                     |   |   |     | 2       |   |   |   | (168 | ) |   |   | (95 | ) |
| (Loss) income before income tax expense                                                                                   |   |                                    | (438   | )      |                    |   | (3      | )      |   |   | 810                     |   |   |     | 7       |   |   |   | (1,248 | ) |   |   | (154 | ) |
|        Income tax expense                                                              |   |                                    | 133    |   |                    |   | 1       |   |   |   | 13                      |   |   |     | — |   |   |   | 120 |   |   |   | 923 |   |
| Net (loss) income                                                                                                         |   | $                                       | (571   | )      |                    |   | (4      | )%     |   | $      | 797                     |   |   |     | 7       | % |   | $ | (1,368 | ) |   |   | (172 | %) |

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|                                                |   | Three Months Ended March 31, |   |
|-----------------------------------------------------|--------|------------------------------|--------|
|                                                |   | 2011                         |   |   | 2010 |   |
|                                                |   | (in thousands)               |   |
| Net cash (used in) provided by operating activities |   | $                            | (1,236 | ) |   | $ | 1,381 |   |
| Net cash used in investing activities               |   |                         | (258   | ) |   |   | (417 | ) |
| Net cash provided by financing activities           |   |                         | 206    |   |   |   | — |   |

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

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

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

See discussion 

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

The following 

| ·   | The adverse effect of high unemployment on the number of vehicle purchasers; |
|--------------------|------------------------------------------------------------------------------|

| ·   | The availability  of consumer credit to finance vehicle purchases; and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Disruption in U.S. automobile sales during 2011, and potentially a reduction in total vehicle sales for 2011, due to rising gasoline prices and recent announcements by both Japanese and domestic auto manufacturers regarding production delays resulting from the earthquake and tsunami in Japan. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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.  Exhibits

| 2.1‡ | Asset Purchase Agreement dated as of  September 16, 2010, by and among Autotropolis, Inc., a Florida corporation, Cyber Ventures, Inc., a Florida corporation, William Ferriolo, Ian Bentley and the Ian Bentley Revocable Trust created U/A/D 3/1/2005, Autobytel Inc., a Delaware corporation, and Autobytel Acquisition Subsidiary, Inc., a Delaware corporation, which is incorporated herein by reference to Exhibit 2.1 of the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010 filed with the SEC on November 12, 2010 (SEC File No. 1-34761)                                                                                                                                                                                                                                                                                                                                                                                                     |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.1        | Fifth Amended and Restated Certificate of Incorporation of Autobytel Inc. (formerly Autobytel.com Inc. (“Autobytel” or the “Company”)) certified by the Secretary of State of Delaware (filed December 14, 1998), as amended by Certificate of Amendment dated March 1, 1999, Second Certificate of Amendment of the Fifth Amended and Restated Certificate of Incorporation of Autobytel dated July 22, 1999, Third Certificate of Amendment of the Fifth Amended and Restated Certificate of Incorporation of Autobytel dated August 14, 2001, Certificate of Designation of Series A Junior Participating Preferred Stock dated July 30, 2004, and Amended Certificate of Designation of Series A Junior Participating Preferred Stock dated April 24, 2009, which is incorporated herein by reference to Exhibit 3.1 of the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 filed with the SEC on April 24, 2009 (SEC File No. 000-22239) |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2        | Third Amended and Restated Bylaws of Autobytel dated April 27, 2011, which is incorporated herein by reference to Exhibit 3.1 of the Current Report on Form 8-K filed with the SEC on April 29, 2011 (SEC File No. 1-34761)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.1        | Form of Common Stock Certificate of Autobytel is incorporated herein by reference to Exhibit 4.1 of the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001 filed with the SEC on November 14, 2001 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.2        | Tax Benefit Preservation Plan, dated as of May 26, 2010, between Autobytel Inc. and Computershare Trust Company, N.A., as rights agent, together with the following exhibits thereto: Exhibit A – Form of Right Certificate; Exhibit B – Summary of Rights to Purchase Shares of Preferred Stock of Autobytel Inc. is incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on June 2, 2010 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.1*      | Rule 13a-14(a)/15d-14(a) Certification by Principal Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.2*      | Rule 13a-14(a)/15d-14(a) Certification by Principal Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.1*      | Section 1350 Certification by Principal Executive Officer and Principal Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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

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

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|   |   |
|--------|--------|

SIGNATURES

|   |                     |           |   |                                                      |   |
|--------|--------------------------|----------------|--------|-----------------------------------------------------------|--------|
|   |                     | AUTOBYTEL INC. |   |
|   |                     |           |   |                                                      |   |
|   |   Date: May 6, 2011 |           | By:    | /s/ Curtis E. DeWalt                                      |   |
|   |                     |           |   | Curtis E. DeWalt                                          |   |
|   |                     |           |   | Senior Vice President and Chief Financial Officer         |   |
|   |                     |           |   | (Duly Authorized Officer and Principal Financial Officer) |   |

|   |                     |   |   |                           |   |
|--------|--------------------------|--------|--------|--------------------------------|--------|
|   |                     |   |   |
|   |                     |   |   |                           |   |
|   |   Date: May 6, 2011 |   | By:    | /s/ Wesley Ozima               |   |
|   |                     |   |   | Wesley Ozima                   |   |
|   |                     |   |   | Vice President and Controller  |   |
|   |                     |   |   | (Principal Accounting Officer) |   |

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|   |   |
|--------|--------|

| 2.1‡ | Asset Purchase Agreement dated as of  September 16, 2010, by and among Autotropolis, Inc., a Florida corporation, Cyber Ventures, Inc., a Florida corporation, William Ferriolo, Ian Bentley and the Ian Bentley Revocable Trust created U/A/D 3/1/2005, Autobytel Inc., a Delaware corporation, and Autobytel Acquisition Subsidiary, Inc., a Delaware corporation, which is incorporated herein by reference to Exhibit 2.1 of the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010 filed with the SEC on November 12, 2010 (SEC File No. 1-34761)                                                                                                                                                                                                                                                                                                                                                                                                     |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.1        | Fifth Amended and Restated Certificate of Incorporation of Autobytel Inc. (formerly Autobytel.com Inc. (“Autobytel” or the “Company”)) certified by the Secretary of State of Delaware (filed December 14, 1998), as amended by Certificate of Amendment dated March 1, 1999, Second Certificate of Amendment of the Fifth Amended and Restated Certificate of Incorporation of Autobytel dated July 22, 1999, Third Certificate of Amendment of the Fifth Amended and Restated Certificate of Incorporation of Autobytel dated August 14, 2001, Certificate of Designation of Series A Junior Participating Preferred Stock dated July 30, 2004, and Amended Certificate of Designation of Series A Junior Participating Preferred Stock dated April 24, 2009, which is incorporated herein by reference to Exhibit 3.1 of the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 filed with the SEC on April 24, 2009 (SEC File No. 000-22239) |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2        | Third Amended and Restated Bylaws of Autobytel dated April 27, 2011, which is incorporated herein by reference to Exhibit 3.1 of the Current Report on Form 8-K filed with the SEC on April 29, 2011 (SEC File No. 1-34761)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.1        | Form of Common Stock Certificate of Autobytel is incorporated herein by reference to Exhibit 4.1 of the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001 filed with the SEC on November 14, 2001 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.2        | Tax Benefit Preservation Plan, dated as of May 26, 2010, between Autobytel Inc. and Computershare Trust Company, N.A., as rights agent, together with the following exhibits thereto: Exhibit A – Form of Right Certificate; Exhibit B – Summary of Rights to Purchase Shares of Preferred Stock of Autobytel Inc. is incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on June 2, 2010 (SEC File No. 000-22239)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.1*      | Rule 13a-14(a)/15d-14(a) Certification by Principal Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.2*      | Rule 13a-14(a)/15d-14(a) Certification by Principal Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.1*      | Section 1350 Certification by Principal Executive Officer and Principal Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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

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