The Cobalt Group Receives $29 Million Equity Investment From Warburg, Pincus Equity Partners, L.P

Business Wire, Jan 19, 1999

SEATTLE--(BUSINESS WIRE)--Jan. 19, 1999--The Cobalt Group Inc., the nation's largest provider of Internet marketing solutions to automotive dealerships, recently received a private equity investment of $29 million from Warburg, Pincus Equity Partners, L.P., a private venture investment partnership managed by the large, New York based financial services firm of E.M. Warburg, Pincus & Co., LLC.

Geof Barker, co-CEO of The Cobalt Group, said the investment will be used to fund the company's growth and to expand its leadership position in the industry.

"Warburg, Pincus is an outstanding partner for The Cobalt Group," Barker said. "The size of the investment and the depth of Warburg's commitment gives us the capital and resources necessary to address our significant market opportunity."

Warburg, Pincus Equity Partners L.P., which is capitalized at $5 billion, is one of the largest venture capital funds in the United States.

"We're excited about the tremendous potential of bringing advanced Internet solutions to the automotive industry," said Joseph P. Landy and Ernest H. Pomerantz, managing directors of E.M. Warburg, Pincus & Co. "We believe that Cobalt represents the ideal internet-based platform to enable automotive dealers to address the changing needs and buying patterns of their customers."

Barker said the automotive industry is not new territory for Warburg, Pincus. The firm holds an equity interest in The Hendrick Automotive Group of Charlotte, N.C., one of the nation's largest automotive dealership operations, as well as in Jordan Grand Prix Holdings, Ltd., a Formula One racing team.

The Cobalt Group (www.cobaltgroup.com), founded in March 1995, pioneered the development of menu-based, cost-effective dealer Web sites. The Cobalt Group owns and operates DealerNet (www.dealernet.com), one of the oldest and best-known auto sites on the Web.