AutoTrader.com Receives Equity Investment From Kleiner Perkins Caufield Byers; Investment Reflects Firm's first Investment in the Automotive Online Category

Business Wire, Nov 3, 1999

ATLANTA--(AutomotiveWire)--Nov. 3, 1999--

AutoTrader.com (www.autotrader.com), the world's largest provider of automotive classifieds with over 1.25 million listings, today announced it has received a substantial investment from Kleiner Perkins Caufield Byers (KPCB), the leading venture capital firm specializing in Internet and technology investments. Financial terms were not disclosed. Through its investment, KPCB will gain a seat on the AutoTrader.com Board of Directors.

The KPCB investment is the firm's first in the online automotive category and is expected to fuel AutoTrader.com's drive to become the most useful and popular online marketplace for used car buyers and sellers. Other investors in AutoTrader.com represent a cross section of recognized leaders in the communications and technology industries, each with an automotive related core business. These include Cox Enterprises, Inc., Manheim Auctions, Inc., Automatic Data Processing, Inc. (NYSE:AUD), and Landmark Communications, Inc.

"We are pleased to have Kleiner Perkins join us as an investor and strategic partner because they are skilled at identifying and nurturing young technology companies that have high potential to become category leaders and winners in the market," said Chip Perry, CEO and President of AutoTrader.com. "In just a short time we have already benefited significantly from their advice and contacts in the Internet space".

"We are particularly interested in companies that have a deep understanding of their category and have the technical prowess and assets to provide a breakthrough for customers within that category," said Joseph Lacob, a partner at KPCB and a member of the Board of Directors of AutoTrader.com. "After studying the online automotive landscape, we decided to invest in AutoTrader.com because of their huge target market, sound business model, unique competitive advantages, clear category leadership, strong growth, and tremendous long term potential". In just the last 15 months, AutoTrader.com has quickly established itself as the leading online player in the used car market (valued at $370 billion annually) and in the automotive classified market (valued at $4.5 billion).

About AutoTrader.com

AutoTrader.com (www.autotrader.com) combines the world's largest automotive classifieds with the most advanced Internet features. By providing a comprehensive source of credible information and a selection of more than 1.25 million used vehicles for sale, AutoTrader.com allows users to have the most successful used car buying or selling experience. AutoTrader.com's investors include Cox Enterprises, Inc., Manheim Auctions, Inc., Automatic Data Processing, Inc. (NYSE: AUD), Landmark Communications, Inc. and Kleiner Perkins Caufield Byers. AutoTrader.com is a product of the recent merger of the two largest online automotive sites on the World Wide Web AutoConnect.com and Auto Trader(R) Online.

About Kleiner Perkins Caufield & Byers

For more than 25 years, Kleiner Perkins Caufield & Byers headquartered in Menlo Park, Calif. - has offered entrepreneurs a broad philosophy of value-added investing: access to capital and access to people. They establish partnerships with experienced industry leaders who recognize, challenge, and even improve on a brilliant idea. Since 1972, KPCB has backed over 340 companies. Today, those portfolio companies have an aggregate market valuation exceeding $250 billion with combined revenues of over $75 billion and employing more than 200,000 people. Investments have included America Online, Amazon.com, Netscape, Excite, @Home, ONSALE, iVillage and SportsLine USA Sun MicroSystems, Netscape, Compaq Computers, Genentech, Healtheon, Amazon.com, drugstore.com and Chemdex.com.