January 21, 2004

1
First Fiscal Quarter Earnings Conference
January 21, 2004
2
Safe Harbor Statement
Certain statements in this presentation
constitute forward-looking statements within the
meaning of the Private Securities Litigation
Reform Act of 1995. The forward-looking
statements are based on current expectations,
estimates, forecasts and projections of future
company or industry performance based on
management's judgment, beliefs, current trends
and market conditions. Forward-looking statements
made or to be made by or on behalf of the company
may be identified by the use of words such as
"expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates" and similar
expressions. Forward-looking statements are not
guarantees of future performance and involve
certain risks, uncertainties and assumptions that
are difficult to predict. Actual outcomes and
results may differ materially from what is
expressed, forecasted or implied in the
forward-looking statements. See also the
discussion of factors that may affect future
results contained in the company's Current Report
on Form 8-K filed with the SEC on August 11,
2000, which we incorporate herein by reference.
The company undertakes no obligation to update
any forward-looking statements, whether as a
result of new information, future events or
otherwise.
3
Company Update

• First quarter EPS was .34 compared to .36 last
  year
• Revenues were slightly higher year-over-year
  core software business grew 5
• REY ranked first in NADA dealership satisfaction
  survey among major dealer system providers
• International division off to a fast start
• Web Solutions added 858 dealerships the
  combination with Third Coast Media is on plan
• Consulting Services business delivered
  double-digit revenue growth
• We strengthened our management team

4
Market Trends

• Automotive retailer optimism remains positive
• Improving front-of-store processes is becoming
  a high priority by automotive retailers and car
  companies
• There is a growing recognition by the industry
  that technology platforms need upgraded
• The general outlook for IT spending is improving

5

• Q1 Summary

in millions, except EPS
Revenues
EPS
EPS restated for stock compensation expense
6
Backlog
in millions
7
Implementation History
revenues in thousands
8
The Reynolds Generations Series

• Web Solutions
• 3308 dealerships added 858
• Customer Management
• 503 dealerships on Contact Management added 73
• Over 2,000 dealerships using Internet Lead
  Management
• Over 800 dealerships using Prospect Management
• Finance Insurance
• Desking solution in controlled release
• Credit Services continue to grow

9
Business Segments
Segments Representative Solutions FY03 Revenues ( in millions) Associates
Software RGS Suite ERA Family Contact Management Web Solutions Dealer Communications 541 1000
Services Consulting Services Reynolds University Credit Services Installation Maintenance Network Car 257 2000
Documents Promotional Materials Purchase Contracts Parts Tickets Repair Orders 174 600
Financing Systems Leasing Upgrade Financing 36 20
10
Q1 Income Summary
in millions
Results include pre-tax charge of 6.0 or 0.05
per share and .03 of income tax benefits
11
Q1 Revenue Summary by Segment
in millions
12
Q1 Operating Income by Segment
in millions
13
Q1 Cash Flow Summary
in millions
14
Financial Outlook

• FY04 EPS to be in the 1.60 - 1.66 range, Q2
  about 0.36
• Revenue growth to be slightly ahead of last year,
  about 2 - 4
• Operating margins to be 17 - 18
• Return on equity to exceed 20
• Capital expenditures to total about 40M
• Depreciation and amortization to total about 45M
  
• RD expenses to be about 85M
• Tax rate to be 39 - 40, excluding Q1 one-time
  benefits
• Shares outstanding to calculate fiscal year EPS
  to be 68M

15
Company Summary

• Positives
• Excellent market position
• Strong financial model
• Management team in place
• Incentive plans aligned
• Solution portfolio strongest in years
• Expanding globally

• Opportunities
• Consulting Turnaround
• Reynolds Generations Series rollout
• Front-end processes / systems improvements
• Sales focus on Hedgehog

16
Questions And Answers