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LAKE SUCCESS, N.Y. — Sparked by its gains in first-quarter
revenue and net income, as well as strengthening new-vehicle sales, DealerTrack Holdings
modified its 2012 performance expectations this week with the projection for
higher revenue.

DealerTrack raised its annual guidance for revenue and
non-GAAP earnings to reflect its stronger outlook for the year and adjusted its
expected GAAP earnings to further reflect certain interest expense and costs
related to the company's issuance of $200 million in senior convertible notes
in March.

The specifics for expected GAAP results are as follows:

—Revenue for the year is expected to be between $375.0
million and $382.0 million, an increase from prior guidance of between $365.0
to $372.0 million.

—GAAP net income for the year is expected to be between
$27.0 million and $30.0 million, a decrease from prior guidance of between
$33.0 million and $36.0 million.

—Diluted GAAP net income per share for the year is expected
to be between $0.61 and $0.68, a decrease from prior guidance of between $0.75
and $0.81 per share.

Furthermore, the details for expected non-GAAP results
include:

—Adjusted EBITDA for the year is expected to be between
$94.0 million and $97.0 million, an increase from prior guidance of between
$91.0 and $95.0 million.

—Adjusted net income for the year is expected to be between
$46.0 million and $49.0 million, an increase from prior guidance of between
$44.0 and $47.0 million

—Diluted adjusted net income per share for the year is
expected to be between $1.04 and $1.11, an increase from prior guidance of
between $0.99 and $1.06

DealerTrack explained the guidance assumes that new-vehicle
sales will be approximately 14.2 million units, up from its previous
expectation of 13.5 million units. The company said its outlook also presumes
used-vehicle sales by franchised dealers will be approximately 14.0 million
units this year, an amount unchanged from our previous estimate.

Officials added diluted GAAP net income and adjusted net
income per share guidance for the year continue to be based on an estimated
44.3 million diluted weighted average shares outstanding.

"We are increasing our revenue guidance for 2012, reflecting
strong first quarter results and an increase in our 2012 car sales
expectations," DealerTrack chairman and chief executive officer Mark O'Neil
said.

"Continued momentum combined with investments in our future
growth make us more confident in our outlook for 2012 and beyond," O'Neil
added.

First-Quarter Financial Highlights

For the quarter that ended on March 31, DealerTrack revealed
both its GAAP and non-GAAP results.

Looking first at GAAP results, the company indicated:

—Revenue for the quarter was $91.6 million as compared to
$77.2 million for the first quarter of last year.

—GAAP net income for the quarter was $17.0 million as
compared to $24.7 million for the first quarter of last year.

—Diluted GAAP net income per share for the quarter was
$0.39, as compared to $0.59 for the first quarter a year ago.

Officials noted first-quarter GAAP net income was positively
impacted by $16.1 million (net of tax), or $0.37 per share, from a non-cash
gain related to the contribution of Chrome to the Chrome Data Solutions joint
venture. They pointed out GAAP net income for the first quarter of last year
was positively impacted by $24.5 million, or $0.58 per share, from a non-cash
reduction in the valuation allowance against the company's net U.S. deferred
tax assets.

Turning next to its first-quarter non-GAAP results,
DealerTrack posted:

—Adjusted EBITDA for the quarter was $19.4 million as
compared to $15.5 million for the first quarter of last year.

—Adjusted net income for the quarter was $9.4 million, as
compared to $7.5 million for the first quarter a year ago.

—Diluted adjusted net income per share for the quarter was
$0.22, as compared to $0.18 for the first quarter of last year.

"We are pleased with our strong performance in the first
quarter," O'Neil said. "Transaction revenue grew at a multiple of growth in car
sales as we increased the average transaction revenue per car sold.

"Our subscription business also performed well, as we saw
particularly strong interest in our inventory solution," he went on to say.

Also of note from its first-quarter report, DealerTrack
highlighted that its amount of active U.S. dealers climbed year-over-year from
17,373 to 18,345.

"We consider a dealer to be active in our U.S. network as of
a date if the dealer completed at least one revenue-generating credit
application processing transaction using the U.S. DealerTrack network during
the most recently ended calendar month," DealerTrack officials explained.

"The number of active U.S. dealers is based on the number of
dealer accounts as communicated by lenders on the DealerTrack network," they
added.

The company's active lender level also rose, moving up from
1,010 to 1,165.

"We consider a lender to be active in our U.S. DealerTrack
network as of a date if it is accepting credit application data electronically
from U.S. dealers in the U.S. DealerTrack network," company officials
reiterated.

DealerTrack's transaction activity also spiked
year-over-year, climbing from 16.7 million transactions to 21.7 million during
the first quarter of this year. The figures represent revenue-generating
transactions processed in the U.S. DealerTrack, DealerTrack Aftermarket
Services, DealerTrack Processing Solutions and DealerTrack Canada networks at
the end of a given period.