What does CFBE stand for?

Mr Vic Vallance, the author of the research report and a leading Canadian energy analyst with over 20 years of experience in equity analysis in the oil and gas sector, pointed out in the research report that Tethys is near cash flow breakeven, and the company's cash flow will turn positive withthe addition of Phase 2 gas volumes, and estimated cash flow per share ("CFPS") will grow from a deficit in 2009 to US$0.

The company established 2009 revenue guidance of between $66 million and $70 million based on expected growth which, in conjunction with reduction in costs, should achieve cash flow breakeven by the fourth quarter of 2009.

The revised BEP formula gives the owner or purchaser a more realistic cash flow breakeven expectation.

Although we did not meet our previously stated operating metric goal of reaching cash flow breakeven, before working capital and capital expenditure requirements, by the end of the second quarter, we continue our focus on ensuring that Autobytel is operating as efficiently as possible, and are hopeful that the company will reach this goal by the end of this year.

Going forward, we believe these actions will position us to achieve a profitability and cash flow breakeven point at revenues of approximately $25 million per quarter, which we expect for the fourth quarter of 2008.

The anticipated growth in revenues, combined with improved gross margins and substantial operating expense reductions, should allow the company to achieve operating cash flow breakeven late in 2008 as measured by Modified EBITDA.

Monetizing this royalty stream provides us with a non-dilutive means of raising capital to fund our operations as we work towards achieving cash flow breakeven in late 2008," said Howard C.

The company expects to achieve cash flow breakeven in late 2008 based on its current revenue and expense projections for the year.