DAYTON, Ohio, The Reynolds and Reynolds Company (NYSE: REY) today announced the acquisition of DealerKid, a premier provider of electronic customer marketing and relationship management software and services for automotive retailers in the United States and Canada. Combined with the formation of its new Consumer Loyalty Services practice of over 50 dedicated CRM consultants, Reynolds creates the first, fully-integrated set of Internet-based retail CRM solutions in the automotive industry. Reynolds expects minimal dilution from the transaction, and as a result is not adjusting its previously-stated guidance for fiscal year 2001 financial performance. As part of the transaction, Reynolds granted a software license back to DealerKid's principals for use in unrelated industries. "The explosion of Internet technology has created significantly greater opportunities for car companies and auto retailers to attract and retain consumers in the vehicle ownership cycle," Lloyd "Buzz" Waterhouse, Reynolds' president and CEO, said. "Since Reynolds already serves nearly 30 million consumers on behalf of our retail customers, we're in an excellent position to help them better manage the changes brought about by the Internet and other technologies. That's why customer relationship management represents a critical element of our company's growth strategy. Auto retailers need a single provider of both the tools and the processes to help them strengthen customer relationships across the many touch points within automotive retailing. The acquisition of DealerKid and the formation of the new Consumer Loyalty Services practice will help our customers dramatically improve the processes critical to capture more business, and strengthen their customer relationships."