Before you can succeed in the future, you must learn from your past.

-5000 0 5000 10000 15000

October

November

December

2006

2005

Total Q4 Contribution

2005 $23,945

2006 $28,554

11% Increase in DAR Contribution from 2005

Snapshot - 2006 vs. 2005

-16000

-14000

-12000

-10000

-8000

-6000

-4000

-2000

0

Oct Nov Dec

2005

2006

Total Q4 Cancellations

2005 $29,200

2006 $27,269

9% Decrease in Cancellations 2006 vs 2005

Snapshot - 2006 vs. 2005

6500

7000

7500

8000

January

2006 20

07

2006

2007

January New Business

2006 $7,100

2007 $9,000

12% Increase in DAR Contribution from 2006

January 2007 vs. 2006

The Vision: Work seamlessly with Outside Sales to grow the West

Region’s Revenue and increase overall dealer satisfaction. Ensure Churn is kept to a minimum and

new business numbers continue to grow in accordance with the region’s 44% growth goal.

Current Situation

Current Situation: Inside Sales continues to foster new business from

independent dealers in California, Nevada, Arizona and New Mexico.

$104,000 in assigned IAC accounts still remain in District 9’s book of business. In accordance with the

original action plan, (implemented in Oct 2006) these accounts have gone un-serviced and are at risk for

downgrade (or) cancellation.

Proposed Solution: Continue to encourage Inside Sales to gather new

business from independent dealers

Allow accounts to remain in their name and implement a monthly 4 % SAR payout to ensure that

the dealer’s are serviced, until such time as the outside districts can comfortably absorb the new business

inside sales generates. (This solution can be short or long term depending on the regions goals to increase

personnel).

Proposed Solution

CARS.com aggressively targets smaller independent dealers by offering a tier level pricing structure based on need and Inventory Size. ATC has responded to this problem with a limited district rollout of the NEW Featured Essentials Program. Limiting the number of contract enhancements and number of vehicles a dealer is able to list. This program will no doubt be valuable ammunition in our on going battle for business in 2007

AutoTrader & AutoExtra Magazine continue to flaunt their association with ATC – claiming that the same subscription program (offered exclusively by AC’s & IAC’s) is rolled into a monthly contract with the magazine. This creates confusion when an ATC representative presents any advertising solution to a Trader customer, as most current Trader customers are under the impression that they already receive our service for FREE!

Competitive Landscape

Team Building Event(s)

The Magic Castle in Hollywood