DealerTrack Holdings, Inc. (Nasdaq: TRAK), a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced the launch of DealerTrack RedFlags(TM), a new solution to help dealers support their identity theft prevention programs and comply with the Federal Trade Commission's recently issued "Red Flags Rule."

DealerTrack RedFlags(TM) builds on the functionality of DealerTrack's Exact ID(TM) OFAC and identity verification product. RedFlags will be offered as part of DealerTrack's DealWatch(TM) solution, the industry's leading compliance tool. In addition, DealerTrack is announcing today the launch of a new website, thecomplianceguide.com, as well as the availability of the third annual edition of its hard-copy Compliance Guide.

"With our new RedFlags solution and these groundbreaking free resources for dealers, we have further strengthened our leadership position in the compliance arena and clearly offer the industry's most comprehensive suite of compliance resources and solutions," said Mark O'Neil, chairman and chief executive officer of DealerTrack. "We are excited to provide information to assist dealers in the development of their mandatory 'Red Flags' programs, as well as an enhanced solution to automate as much of the identity verification process as possible. We have been continuously monitoring the development of the new rules since they were first proposed in 2005. Our development of DealerTrack RedFlags was driven in large part by our dialogue with the dealer community since the introduction of DealWatch and ExactID two years ago."

The new federal rule took effect January 1, 2008, and full compliance is mandatory by November 1, 2008. The rule requires auto dealers to develop and implement a written program that will help them to detect certain "red flags" that may signal identity theft, and to respond appropriately.

DealerTrack RedFlags cross-checks a customer's information against numerous databases to help make an assessment as to whether he or she may be using a false identity. It assigns a score to the customer and gives reasons for the score, so the dealer can quickly spot potential problems and make informed decisions. The solution also checks each customer against the watch list maintained by the federal Office of Foreign Assets Control (OFAC). DealerTrack RedFlags incorporates the functionality of ExactID, but goes further by alerting dealers to potential address discrepancies, Social Security number mismatches, and credit files with fraud alerts or security freezes, among other enhancements.

A free 60-day trial of DealerTrack RedFlags will be offered to dealers using the DealerTrack platform to show them how it can become a key component of their Red Flags program required by the new FTC rule. Subscribers to DealerTrack's DealWatch will have unlimited access to RedFlags with no additional transaction fees. DealWatch, which is fully integrated with the DealerTrack network, is a comprehensive compliance solution that helps dealers protect themselves with electronic signature capture, encryption and storage of sensitive customer documents, and robust reporting of dealership activity to help prevent mistakes and costly litigation.

DealerTrack's new compliance website, thecomplianceguide.com, provides an on-line complement to DealerTrack's Compliance Guide, which was first published two years ago, and has been enhanced and expanded in the new edition. The site will also include podcasts on important industry trends, pre-recorded webinars on Red Flags and other relevant topics and articles from leading compliance experts.

"Our new website, thecomplianceguide.com, is the first and only comprehensive compliance resource that is free and online for dealers," O'Neil said. "We are ideally positioned, and fully committed, to maintaining our leadership role in supporting dealers as they strive to navigate the increasingly complex web of federal and state laws and regulatory mandates."

The new edition of the hard-copy Compliance Guide is also now available. The Compliance Guide is a free booklet designed to educate dealers about compliance issues and suggested business practices, and covers the following areas: Consumer Privacy, Data Security & Identity Theft; Credit Applications and Contracts; Marketing and Advertising; Aftermarket Selling; Arbitration, and Recordkeeping & Destruction. It also contains a glossary explaining key compliance terms.