TRAK (MM)

CHICAGO, Jan. 24 /PRNewswire/ -- William Blair & Company initiated research coverage of DealerTrack, Inc. (NASDAQ:TRAK)($22.05) with an Outperform rating and company profile of Aggressive Growth. DealerTrack provides several remotely hosted technology services that increase vehicle dealerships' success in making sales and the profitability of those sales. Analyst Franco Turrinelli estimated that the company would earn $0.68 per share in 2006 and $0.90 per share in 2007. "Selling new and used vehicles, still by far the largest consumer retail market in the United States, is an exceptionally competitive business-every dealership is highly focused on its ability to close sales and their profitability," Turrinelli said. "DealerTrack's solutions directly affect a dealership's ability to improve these metrics. The company began business operations by facilitating electronic submission of auto loan applications-a critical component since more than 80% of consumers use financing to purchase a vehicle, and an increasingly significant source of funds for dealerships. Currently, the company is expanding its offering to include several subscription-based services to dealerships that address each stage of the pre-, during, and post-sale processes." "The company's revenues are generated by transaction and fixed-monthly fees and therefore are highly recurring and stable," he added. "Vehicle sales are less volatile than might be expected, and we expect DealerTrack's revenues will prove significantly less cyclical than the automotive market itself. The company's services use shared infrastructure, and margin expansion should be a consistent theme. The balance sheet is strong, and cash flow and the company's stock provide currency for acquisitions to strengthen existing offerings and enter new growth markets." William Blair & Company, L.L.C. (http://www.williamblair.com/) is a Chicago-based investment firm, founded in 1935, offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. We place a high value on the enduring nature of our client relationships, the quality of our products and services, and the continuity and integrity of our people. William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months. William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months. William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position. For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/pages/news_story_dept.asp?uid=974&depID=4 Additional information is available upon request. William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252. First Call Analyst: FCMN Contact: DATASOURCE: William Blair & Company CONTACT: Tony Zimmer of William Blair & Company, L.L.C., +1-312-364-8611, or Web site: http://www.williamblair.com/

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