Carbiz Inc.
OTC Bulletin Board : CBZFF

Carbiz Inc.

January 03, 2008 08:30 ET

CarBiz Closes Funding Package of up to $111,975,000

SARASOTA, FLORIDA--(Marketwire - Jan. 3, 2008) - CarBiz Inc. (OTCBB:CBZFF), the fourth largest Buy Here Pay Here car dealership chain in the United States, has announced that it has increased its credit facility with SWC Services LLC and AGM LLC from $30 million to a funding package of up to $111,975,000.

The facility was used to acquire the 26 dealerships in seven Midwestern states of Astra Financial Services, Inc. and Calcars AB, Inc. in October 2007 (approximately $22 million), to finance CarBiz's Texas business that it acquired on December 24 ($15 million to date) and to fund present operations and future growth.

In the acquisition of the Texas business, the $15 million funded to date has been used to acquire approximately 1,500 used car and truck loans to spearhead CarBiz's newly formed "Superstore" operation in Houston, Texas. In its "Superstore," the typical vehicle will be financed by CarBiz at $15,000 with a four year term compared to $6,000 at its typical store.

In addition to funds that have been made available for present operations under the facility, another $4 million has been set aside to provide inventory financing for CarBiz and the remaining balance, approximately $60 Million, will be used for future growth if certain terms and conditions under the facility are satisfied.

CarBiz CEO Carl Ritter commented, "We know we have a solid business plan and others are starting to see it too. This significant financing package, which is non dilutive to our shareholders, tells everyone that we are definitely on the right track as we start the New Year."

For complete details of the financing package, please review CarBiz's 8-K filed December 31, 2007 with the Securities and Exchange Commission at http://www.sec.gov.

About CarBiz Inc.

Based in Sarasota, Florida, CarBiz owns and operates the nation's fourth-largest chain of "buy-here pay-here" dealerships through its CarBiz Auto Credit division. The company is also a leading provider of software, training and consulting solutions to the United States automotive industry. CarBiz's suite of business solutions includes dealer software products focused on the "buy-here pay-here," sub-prime finance and automotive accounting markets. Capitalizing on expertise developed over 10 years of providing software and consulting services to "buy-here pay-here" businesses across the United States, CarBiz entered the market in 2004 with a location in Palmetto, Florida. CarBiz has added two more credit centers since - in Tampa and St. Petersburg - and recently acquired a large regional chain in the Midwest, bringing the total number of dealerships to 26 in eight states. For more information about CarBiz and its services, visit CarBiz's web site: www.CarBiz.com.

Forward-Looking Statements

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future growth plans and objectives of CarBiz. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements as a result of known and unknown risks, uncertainties and other factors. Such factors that could cause actual results and future events to differ from those anticipated in such statements include, but are not limited to, the market acceptance of CarBiz's Auto Credit Centers, the ability of CarBiz to effectively deploy the funds received from the convertible debenture financing, the ability of CarBiz to close on additional tranches of the convertible debenture financing, the possibility that the liquidated damage provisions or the default provisions could be triggered under the terms of the convertible debenture financing which could be adverse to CarBiz, CarBiz's ability to measure the default rate of its borrowers, competition, the impact of any changes in applicable government regulation and general economic conditions. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. CarBiz assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

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