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Autobytel Reminds Stockholders about Tax Benefit Preservation Plan in View of Recent Trading Activity in Company's Shares


autobytel

IRVINE, Calif.--Autobytel Inc. , today reminded stockholders about its Tax Benefit Preservation Plan, adopted in May 2010, in view of recent trading activity in the company's common stock.

The plan was adopted to protect stockholder value by seeking to preserve the company's substantial net operating loss carryovers and other tax attributes for United States federal income tax purposes that can generally be used to offset future taxable income, and therefore, reduce federal income tax obligations. These tax benefits would be substantially limited if the company were to experience an ownership change, as defined in Section 382 of the Internal Revenue Code.

In general, an ownership change will occur if the company-percent shareholders, for purposes of Section 382, collectively increase their ownership in the company by an aggregate of more than 50 percentage points over a rolling three-year period. The Tax Benefit Preservation Plan is designed to reduce the likelihood that the company experiences such an ownership change by discouraging any person or group from becoming a new 5-percent shareholder under Section 382 and any 5-percent shareholder existing at the time of adoption of the plan from acquiring additional shares of common stock. The plan is triggered upon the acquisition of 4.90% or more of the company's outstanding common stock by a person or group that was not a 5-percent shareholder at the time of the plan's adoption or upon the acquisition of additional shares of common stock by a person or group that was a 5-percent shareholder at the time of the plan's adoption.

For a more complete description of the Tax Benefit Preservation Plan please see the company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 2, 2010. The plan, a summary of the plan and FAQs regarding the plan are available on Autobytel's website at Autobytel. Investor Relations Tax Benefit Preservation Plan.