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ATLANTA — Dealers who use AutoTrader.com to push their vehicles online
now can choose to own a piece of the operation as the site is on its way to
becoming a publicly traded company.

AutoTrader Group — a newly formed entity that includes
AutoTrader.com, Kelley Blue Book, vAuto and VinSolutions — filed paperwork with
the Securities & Exchange Commission late last week for a proposed initial
public offering of its common stock worth $300 million.

Officials said through a registration statement on Form S-1
with the SEC late last week that the number of shares to be offered and the
price range for the offering have not yet been determined.

Auto Remarketing and SubPrime Auto Finance News attempted to
reach company executives for comments and reaction to the developments, but company
spokesperson Lou Laste said SEC regulations prevent any further dialogue beyond
what's contained in federal paperwork.

Formation of New Company

According to federal documents, CEI and Providence Funds
formed AutoTrader Group, Inc., in May. CEI encompasses major operating
subsidiaries Cox Communications, Manheim and Cox Media Group while Providence
Equity Partners obtained a 25-percent stake in CEI two years ago.

AutoTrader Group is divided into two distinct business
segments. One is Digital Media, which includes AutoTrader.com and KBB, and the
other is Software Solutions, which includes CDMdata, vAuto, HomeNet Automotive
and VinSolutions.

The board of this new entity includes:

—Chip Perry, president, chief executive officer and director
—Dallas Clement, executive vice president and chief financial officer
—James Franchi, executive vice president and chief operating officer, AutoTrader.com
—Edward Smith, chief technology officer
—Clark Wood, chief marketing officer
—Steven Smith, senior vice president of dealer sales, AutoTrader.com
—Matthew McKenna, senior vice president of national account sales, AutoTrader.com
—David Amundsen, vice president of finance, AutoTrader.com
—Peter Cassat, vice president and general counsel
—Jared Rowe, president,  Kelley Blue
Book
—Keith Jezek, president, vAuto and president, VinSolutions
—Dale Pollak, founder, vAuto
—Jimmy Hayes, chairman of the board and director
—Albert Dobron, director
—Michael Dominguez, director
—John Dyer, director
—James Kennedy Jr., director
—John Olin, director
—Sandy Schwartz, director
—Alexander Taylor, director

"Upon the completion of this offering, representatives of
CEI and Providence Equity Partners will occupy a majority of the seats on our board,"
AutoTrader Group officials explained.

"CEI may compete with us directly or invest in entities that
directly or indirectly compete with us. In addition, Providence Equity Partners
could invest in entities that directly or indirectly compete with us, and
entities in which Providence Equity Partners is invested may compete with us in
the future," they continued.

"As a result, when conflicts arise between the interests of
CEI or Providence Equity Partners and the interests of our other stockholders,
these directors may not be disinterested. The representatives of CEI or Providence
Equity Partners on our board, by the terms of our amended and restated
certificate of incorporation, are not required to offer us any corporate opportunity
of which they become aware and could take any such opportunity for themselves
or offer it to other companies in which they have an investment, unless such
opportunity is expressly offered to them solely in their capacity as our
directors," officials went on to say.

Editor's Note: For more details about AutoTrader's IPO,
including its growth strategy and latest financial performance, keep watch of
updates from sister publication Auto Remarketing.