Carbiz Inc.
OTC Bulletin Board : CBZFF

Carbiz Inc.

October 04, 2007 08:30 ET

CarBiz Inc. Obtains New Credit Facility

SARASOTA, FLORIDA--(Marketwire - Oct. 4, 2007) - Carl Ritter, chief executive officer of Sarasota-based CarBiz Inc. (OTCBB:CBZFF) ("CarBiz"), announced that CarBiz has obtained a new credit facility of $30 million in connection with its recent acquisition of the Calcars group of companies in the Midwest. CarBiz is now the fourth-largest "buy-here pay-here" automotive dealership company in the nation with 26 retail outlets in eight states.

"This new credit facility provides CarBiz with capital to aggressively grow our chain of 'buy-here pay-here' automotive dealerships that is now 26 strong," Ritter said.

The credit facility includes a term loan of up to $21.925 million, a revolving floor plan facility of up to $2 million and a revolving receivables loan facility of up to $23 million. In addition to this senior credit facility, CarBiz closed two convertible debenture financings, a $1.5-million secured convertible debenture financing (with warrants) with Trafalgar Capital Specialized Investment Fund, Luxembourg, and an $800,000 unsecured convertible debenture financing (with warrants) with a group of CarBiz insiders and related parties. Additional details about these financings can be found in the Report on Form 8-K filed by the company with the SEC on October 2, 2007, which can be accessed through the company's website at http://www.carbiz.com/investor_relation.asp.

Ritter said the CarBiz acquisition exemplifies a growing trend of consolidation in the $150-billion alternative financial services market, which includes such services as "buy-here pay-here" auto sales, pay day loans, check cashing services, and more. Other examples of recent consolidations include Diamond Castle's acquisition of CheckSmart, First Cash Financial Services' acquiring Auto Master BHPH, and Manchester Inc.'s acquisition of several "buy-here pay-here" chains in the Southwest.

This press release is available on the CarBiz IR HUB for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com/IR/Carbiz . Alternatively, investors are asked to e-mail all questions and correspondence to CBZFF@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and correspondence directly.

About CarBiz

Based in Sarasota, Florida, CarBiz operates "buy-here pay-here" dealerships through its CarBiz Auto Credit division that are wholly-owned or joint venture companies. 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 of dealerships to 26 in eight states. CarBiz seeks to expand its operations in the future. 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 integrate the Calcars dealerships into its dealership network, the ability of CarBiz to effectively deploy the funds received from the new credit facilities and convertible debenture financings, 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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