Carbiz Inc.
OTC Bulletin Board : CBZFF

Carbiz Inc.

December 05, 2007 09:01 ET

CarBiz Nearly Doubles Software Market Potential Following Deal with Magnolia Automobile Consultants

SARASOTA, FLORIDA--(Marketwire - Dec. 5, 2007) - CarBiz Inc. (OTCBB:CBZFF) announced that it has entered into an agreement with Magnolia Automobile Consultants, LLC of Madison, Mississippi (MAC) to provide software for MAC's dealer network. CarBiz's software package provides a complete management system helping the individual car dealer's business through efficient inventory control, improved sales documentation and the assisting of collections.

The agreement will give MAC the right to sell CarBiz's software to MAC's 1,300 dealers in Mississippi. This will nearly double the number of dealerships having access to CarBiz's software package from its existing base of nearly 1,500. Currently, software accounts for approximately 10% of CarBiz's revenue.

The deal is expected to generate additional revenue for both companies by providing an additional product offering for MAC and a greater number of potential dealerships for CarBiz. The founder of Magnolia Automobile Consultants, Mr. B.J. Hall, realizes the benefits for all concerned. He said, "CarBiz is a very professional, outstanding company with whom we look forward to having a successful business relationship for many years to come."

CarBiz CEO Mr. Carl Ritter added, "We're certainly happy with this relationship because it fits nicely with our expansion plans. Besides software, our growth strategy also includes additional product and service offerings in the alternative financial services market."

CarBiz recently became the fourth largest Buy-here Pay-here business in the United States after a major acquisition involving 26 dealerships in seven mid-western states.

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:

About Magnolia Automobile Consultants, LLC

Magnolia Automobile Consultants (MAC) was formed in 1991 after its founders, BJ and Carole Hall, discovered that several dealers were not satisfied with the direction being taken by the other associations. Starting from their home office in Madison, Mississippi, BJ and Carole began consulting with new and existing dealers. Their goal was to make each and every dealer run a successful and profitable company. They now have almost 1,300 members represented in Mississippi. BJ and Carole work closely with the State and Federal Authorities on each dealer's behalf as a liaison in all situations from problem solving to Regulatory and Enforcement actions. They know what is happening prior to their members and they keep each dealer apprised of any new developments. BJ and Carole are also one of the very few individuals in Mississippi that conduct continued education seminars for the used car industry.

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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