DealerTrack, Inc., a subsidiary of DealerTrack Holdings, Inc. (Nasdaq: TRAK), a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced that it has launched a new inventory optimization solution that fully integrates and extends the capabilities acquired with DealerTrack�s purchase of AAX in January. DealerTrack Inventory Optimization, powered by AAX, is designed to meet the needs of dealers of any size, from national dealer groups to single-point franchise and independent dealerships.

The solution includes new proprietary Scoring and Recommendation functionality to help dealers determine what to do with a vehicle at the time of appraisal based on potential profit levels. For any particular vehicle, a numerical score and buy/sell recommendation are assigned based on actual transactions involving that make/model in a dealer�s own store and the surrounding market area. With this unique functionality, dealers can make smarter decisions and develop specific strategies for all trade-ins when the trade-in is first appraised.

�DealerTrack Inventory Optimization is built on the premise that better data helps dealers make smarter inventory decisions that drive increased profits,� said Tim Zierden, general manager, inventory solutions at DealerTrack. �In today�s market, managing inventories more proactively and systematically is one of the smartest moves dealers can make to improve their top and bottom lines.�

DealerTrack Inventory Optimization, which is structured as four distinct service offerings, helps dealers take the guesswork out of managing their inventory. The solution is driven by the industry�s most comprehensive data set, including over 30 million actual vehicle transactions. With this easy-to-use platform, dealers can make smarter decisions from the point of acquiring vehicles through the entire vehicle lifecycle. Leveraging the solution�s technology and consulting services, dealers can develop a specific and strategic plan for each and every vehicle and thereby increase gross profits and reduce days-to-turn.

Mr. Zierden concluded, �Based on a recent analysis, on average, dealers implementing core vehicle recommendations provided by DealerTrack have increased their gross profit per vehicle by 53% and reduced days-to-turn by 11 days.�*

About DealerTrack (www.dealertrack.com)

DealerTrack�s high-value software solutions enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, agents and aftermarket providers. DealerTrack operates the industry�s largest online credit application network, connecting approximately 19,000 dealers with over 750 financing sources. Our solution set for dealers is the industry�s most comprehensive. Our Dealer Management System (DMS) enables dealers to effectively manage data and operations from a system with an open integration interface. With DealerTrack Inventory Optimization, dealers get better data along with the tools to make smarter, more profitable inventory decisions. Our Sales and F&I solution enables dealers to streamline the entire sales process, quickly structuring all types of deals from a single integrated platform. DealerTrack�s Compliance solution helps dealers meet legal and regulatory requirements and protect their hard-earned assets. DealerTrack�s family of companies also includes data and consulting services providers, ALG (Automotive Lease Guide) and Chrome Systems. For more information, visit www.dealertrack.com.

Safe Harbor for Forward-Looking and Cautionary Statements

Statements in this press release regarding the benefits of DealerTrack�s Inventory Optimization Solution and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.

Factors that might cause such a difference include accuracy of the information gathered by DealerTrack, the implementation and use of DealerTrack Inventory Optimization by its customers, and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2008. These filings can be found on DealerTrack's website at www.dealertrack.com and the SEC's website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

*Based upon a 2008 analysis comparing AAX subscribers that implemented core recommendations more than 50% of the time vs. those that followed recommendations less than 20% of the time.

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