GAAP Results for the Third Quarter 2009

Revenue for the quarter was $58.8 million, as compared to $60.5 million for the third quarter of 2008.

GAAP net loss for the quarter was $(0.2) million, as compared to GAAP net loss of $(2.6) million for the third quarter of 2008.

GAAP net loss per share for the quarter was $(0.01), as compared to GAAP net loss of $(0.07) per share for the third quarter of 2008.

Non-GAAP Results for the Third Quarter 2009

Adjusted EBITDA for the quarter was $10.8 million, as compared to $12.4 million for the third quarter of 2008.

Cash net income for the quarter was $5.2 million, as compared to $8.8 million for the third quarter of 2008.

Diluted cash net income per share for the quarter was $0.13, as compared to $0.21 per share for the third quarter of 2008.

GAAP Results for the Nine Months Ended September 30, 2009

Revenue for the nine months was $172.4 million, as compared to $188.0 million for the same period in 2008.

GAAP net loss for the nine months was $(3.7) million, as compared to GAAP net income of $2.8 million for the same period in 2008.

GAAP net loss per share for the nine months was $(0.09), as compared to GAAP diluted net income of $0.07 per share for the same period in 2008.

Non-GAAP Results for the Nine Months Ended September 30, 2009

Adjusted EBITDA for the nine months was $26.3 million, as compared to $40.1 million for the same period in 2008.

Cash net income for the nine months was $15.6 million, as compared to $28.0 million for the same period in 2008.

Diluted cash net income per share for the nine months was $0.38, as compared to $0.65 per share for the same period in 2008.

GAAP net loss and cash net income for the third quarter, as well as the first nine months of 2009, were negatively impacted by a $0.8 million (net of taxes), or approximately $0.02 per share, contingent earn out compensation expense associated with our 2007 acquisition of AutoStyleMart. Additionally, for the first nine months of 2009, both GAAP net loss and cash net income were favorably impacted by an approximately $1.1 million, or $0.03 per share, tax benefit as a result of filing several amended prior year state tax returns, and were negatively impacted by an approximately $4.5 million (net of taxes) or $0.11 per share, restructuring charge, of which $2.6 million (net of taxes), or $0.06 per share, was a non-cash expense. Additionally, cash net income for the first nine months of 2009, was favorably impacted by a realized gain of approximately $0.9 million (non-taxable), or $0.02 per share, relating to the sale of securities. The tax benefit and the realized gain on the sale of securities were recognized during the second quarter of 2009 and the restructuring charge was in the first quarter of 2009.

For the first nine months of 2008, GAAP net income includes a realized loss of $5.7 million (non-taxable), or $0.13 per share, related to the impairment of certain auction rate securities. Both cash net income and Adjusted EBITDA exclude this loss.

Guidance for 2009 Annual Performance

Due to our performance in the third quarter, the impact of the government's Cash for Clunkers program, and the acquisition related earn-out payment, DealerTrack has updated revenue and GAAP and non-GAAP earnings guidance for the full year 2009 as follows:

Expected GAAP Results

Revenue for the year is expected to be between $227.0 million and $229.0 million, compared to the previous guidance of $228.0 million to $232.0 million

GAAP net loss for the year is expected to be between $(4.9) million and $(3.4) million, compared to the previous estimate of $(4.3) million to $(2.8) million.

GAAP net loss per share for the year is expected to be between $(0.12) and $(0.08), compared to the previous estimate of $(0.11) to $(0.07).

Expected Non-GAAP Results

Adjusted EBITDA for the year is expected to be between $33.0 million and $35.0 million, compared to the previous estimate of $32.0 million to $34.0 million.

Cash net income for the year is expected to be between $19.9 million and $21.4 million, compared to the previous estimate of $17.9 million to $19.4 million.

Diluted cash net income per share for the year is expected to be between $0.48 and $0.52, compared to the previous estimate of $0.43 to $0.47.

GAAP net loss per share guidance for the year is based on an assumed 40.3 million basic weighted average shares outstanding. Diluted cash net income per share guidance for the year is based on an assumed 41.3 million diluted weighted average shares outstanding.

The revised guidance assumes that for 2009 new car sales will be 10.5 million units and used car sales will be 12.5 million units. The guidance also includes the expected impact of the Chrysler and General Motors bankruptcies and related franchise terminations, including the Saturn wind down.

Mark O'Neil, chairman and chief executive officer of DealerTrack, commented, "We are pleased with our results for the quarter which we believe clearly illustrate the operating leverage in our business. For the third quarter, we posted an adjusted EBITDA margin of 18%, our highest level in the past twelve months as we benefitted from increased volumes from the Cash for Clunkers program." O'Neil continued, "Despite the near-term headwinds associated with the ˜hangover' effect from the Cash for Clunkers program and additional dealership closures, we are constructive on the long-term outlook for our business. We are seeing signs of modest improvement in both new car sales and credit. We believe DealerTrack is extremely well positioned to benefit from a pick up in auto sales, as well as continued growth in our subscription business. Given our performance in the third quarter and our continued focus on cost controls, we are raising our non-GAAP earnings guidance for the year and remain confident with our ability to generate strong cash flows."

Conference Call

DealerTrack will host a conference call to discuss its third quarter 2009 results, 2009 guidance and other matters on November 4, 2009 at 5:00 p.m. Eastern Time. The conference call will be webcast live on the Internet at http://ir.dealertrack.com/eventdetail.cfm?EventID=71993. In addition, a live audio of the call will be accessible to the public by calling 888-510-1762 (domestic) or 719-325-2431 (international); no access code is necessary. Callers should dial in approximately 10 minutes before the call begins. A replay will be available on the DealerTrack website until November 19, 2009.

Non-GAAP Financial Measures

The non-GAAP measures of adjusted EBITDA and cash net income disclosures are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of net income (loss). Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net income (loss) excluding interest, taxes, depreciation and amortization expenses and excludes restructuring charges, acquisition related compensation earn out expense and professional service fees and a realized gain or (loss) on securities. Cash net income is a non-GAAP financial measure that represents GAAP net income (loss) excluding non-cash stock-based compensation expense (net of taxes), the amortization of acquired identifiable intangibles (net of taxes) and net non-cash realized gain or (loss) on securities (non-taxable). Adjusted EBITDA and cash net income are presented because management believes they provide additional information with respect to the performance of our fundamental business activities as the purchase accounting treatment of acquisitions can have a negative impact on our net income because the depreciation and amortization expenses associated with acquired assets, as well as particular intangibles (which tend to have a relatively short useful life), can be substantial in the first several years following an acquisition. As a result, we monitor our adjusted EBITDA and other business statistics as a measure of operating performance in addition to net income (loss) and the other measures included in our consolidated financial statements. Management believes the adjusted EBITDA and cash net income information is useful to investors for these reasons. Adjusted EBITDA and cash net income are non-GAAP financial measures and should not be viewed as an alternative to GAAP measures of performance. Management believes the most directly comparable GAAP financial measure for adjusted EBITDA and cash net income is GAAP net income (loss) and has provided a reconciliation of adjusted EBITDA to GAAP net income (loss) and cash net income to GAAP net income (loss), in Attachment 4 to this press release.

About DealerTrack (www.dealertrack.com)

DealerTrack's intuitive and 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. Our solution set for dealers is the industry's most comprehensive. DealerTrack operates the industry's largest online credit application network, connecting over 17,000 dealers with over 750 financing sources. Our Dealer Management System (DMS) provides dealers with easy-to-use tools with real-time data access that will streamline any automotive business. 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 DealerTrack's expected 2009 performance; assumptions relating to the improvement in both car sales and credit, the long-term outlook for its business, and DealerTrack's growth and cash flow expectations; 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: economic trends that affect the automotive retail industry or the indirect automotive financing industry including the number of new and used cars sold; reductions in auto dealerships by General Motors and Chrysler in the United States; increased competitive pressure from other industry participants, including Open Dealer Exchange, RouteOne, CUDL, Finance Express and AppOne; the impact of some vendors of software products for automotive dealers making it more difficult for DealerTrack's customers to use DealerTrack's solutions and services; security breaches, interruptions, failures and/or other errors involving DealerTrack's systems or networks; the failure or inability to execute any element of DealerTrack's business strategy, including selling additional products and services to existing and new customers; the volatility of DealerTrack's stock price; new regulations or changes to existing regulations; the integration of recent acquisitions and the expected benefits, as well as the integration and expected benefits of any future acquisitions that DealerTrack may pursue; DealerTrack's success in expanding its customer base and product and service offerings, the impact of recent economic trends, and difficulties and increased costs associated with raising additional capital and other risks listed in DealerTrack's reports filed with the Securities and Exchange Commission (SEC), including its 2008 Annual Report on Form 10-K. 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.

                                                                                                                              
 Attachment (1) Actual Results: Three-Month Period                                                                            
 DEALERTRACK HOLDINGS, INC.