January 22, 2003

1
First Quarter Earnings Conference
January 22, 2003
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

• Q1 Highlights

• EPS increased 14 with continued strong operating
  margins
• Revenues increased 3 with mix of business
  slightly different than expected
• Acquired Networkcar, industrys most advanced
  telematics solution, adding to growing arsenal of
  CRM solutions
• Todays acquisition of MSN Autos Dealerpoint
  extends REYs leadership in CRM services
• Customer reception of the Reynolds Generations
  Series and new value-added services continued to
  be positive
• Created New Markets Group to enter adjacent
  markets

4

• Market Update

• Flat IT spending pattern lasting longer than
  expected
• Franchised automobile retailers remain a strong
  market
• Automotive retailer optimism remains high, driven
  in large part by diverse mix of profit centers
• Car company initiatives adding increased value
  and require a retailing solutions partner to
  implement
• Interest in customer retention solutions and
  services continues to grow

5
The Networkcar CAReader
Networkcar
Car Owner Benefits
OnStar

• Transmits car performance and location
  information over existing wireless infrastructure
• Installs easily under a cars dashboard

LoJack
Alarm
EMERGENCY
Smart Roadside Assistance
Emergency Assistance
Remote Door Unlock
SERVICE
Real-time Performance Monitoring
Real-time E-mail Problem Alerts
E-mail Alerts of Service Milestones
On-line Service Appointment Scheduling
Remote Auto Technician Assistance
Personal Website with Service Records and Recalls
Concierge Assistance
EMISSION
Early Detection of Emission Problems
Remote Emissions Monitoring and Certification
THEFT
Possible Theft Prevention
Stolen Vehicle Recovery




Cost
Opportunities
6
MSN Autos Dealerpoint

• Adds entry-level lead management solution to CRM
  portfolio
• Currently used by over 4,000 retailers
• Creates opportunity to migrate to full Contact
  Management solution
• Provides meaningful touchpoint with car companies
• Extends REYs automotive CRM leadership position

7
The Reynolds Generations Series Progress
8
Adjacent Markets Status
Opportunities
9

• Q1 Summary

in millions
Revenues 3
EPS 14
0.40
247
0.35
240
2002
2003
2002
2003
Excludes accounting change last year
10
Q1 Revenue Summary by Segment
in millions
11
Q1 Income Summary
in millions
Excludes accounting change last year
12
Q1 RD
in millions
13
Q1 Margin Summary
14
Cash Flow Summary
in millions
15
Share Repurchase Summary
16
Software Solutions Backlog
in millions
17

• Financial Outlook

• EPS to be approximately 1.70
• Q2 EPS to be approximately 0.40
• Operating margins to be approximately 19
• Return on equity to exceed 20
• CapEx and capitalized software to total
  approximately 35M
• Depreciation and amortization to total
  approximately 40M
• RD expenses are expected to be approximately
  70M
• Share repurchases expected to continue
• Fully diluted shares used to calculate EPS to be
  approximately 71M