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DealerTrack Prevails On Five Pre-Trial Rulings in Patent-Infringement Lawsuit

Wednesday, July 30, 2008

Lake Success, NY -- DealerTrack Holdings, Inc., a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced an update regarding its patent infringement litigation against RouteOne LLC and Finance Express LLC. On July 21, 2008, a hearing regarding the litigation was held in the United States District Court for the Central District of California. Judge Andrew Guilford subsequently issued rulings favorable to DealerTrack on five key motions in the litigation, including several motions for summary judgment.

In its rulings, the Court resolved disputed issues of inventorship, validity, inequitable conduct, and RouteOne's exposure to a willful infringement claim, in DealerTrack's favor. These favorable rulings for DealerTrack eliminate certain defenses by RouteOne and Finance Express and allow DealerTrack's damages to be trebled if RouteOne's infringement is found to be willful at trial.

The judge deferred rulings on two additional motions pending his upcoming Markman ruling, in which the judge will decide the meaning of certain terms in the patent claims. The judge also denied DealerTrack's motion to remove one defense, reserving it for trial because of questions of fact.

"We are obviously very pleased with the progress of this litigation in support of our intellectual property rights," said Mark O'Neil, chairman and chief executive officer of DealerTrack. "In March, Judge Guilford denied RouteOne's motion for partial summary judgment that one of our three patents was invalid. Now he has ruled in DealerTrack's favor on five additional decisions that he has handed down." O'Neil concluded, "We are confident in the merits of our case and look forward to the trial in October."

About DealerTrack (

DealerTrack Holdings, Inc. is a leading provider of on-demand software and data solutions for the U.S. automotive retail industry. Our solutions enable dealers to receive consumer leads, submit credit applications, compare financing and leasing options, sell insurance, vehicle accessories and other aftermarket products, document compliance, and execute financing contracts electronically. In addition, the DealerTrack Arkona DMS (dealer management system) is used by dealerships nationwide. Over 22,000 dealers, 700 financing sources, and many other service and information providers are active in the DealerTrack network. For more information, visit

Safe Harbor for Forward-Looking and Cautionary Statements

Statements in this press release regarding DealerTrack's ability to prevail on the merits or obtain treble damages at trial, 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 Holdings, Inc. 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: the outcome of future rulings by the Court and other risks listed in our reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2007. These filings can be found at and the SEC's website at Forward-looking statements included herein speak only as of the date hereof and we disclaim 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.

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