Carbiz Inc.

Carbiz Inc.

February 28, 2005 07:00 ET

Carbiz Inc. Announces Joint Venture


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CARBIZ INC.

TSX VENTURE SYMBOL: CZ

FEBRUARY 28, 2005 - 07:00 ET

Carbiz Inc. Announces Joint Venture

SARASOTA, FLORIDA--(CCNMatthews - Feb. 28, 2005) - Carl Ritter, chief
executive officer of Carbiz Inc. (TSX VENTURE:CZ) ("Carbiz"), announced
that Carbiz has entered into a joint venture agreement to accelerate its
previously announced expansion into the auto credit business. The joint
venture agreement proposes to add one Carbiz Auto Credit Center in
Florida in May and four additional credit centers as cash flow permits.

Carbiz remains committed to opening additional wholly-owned corporate
credit centers but will also launch joint venture credit centers to
protect the company's cash position while maximizing operational
capacity. The innovative, joint venture strategy will strengthen the
Carbiz balance sheet immediately, accelerate growth, reduce risk and
protect shareholder value by expanding more rapidly without dilution.

The joint venture will be funded entirely by the joint venture partner,
who is a member of the Carbiz Board of Directors, through a $500,000 US
investment for 50 percent of the capital stock of the joint venture
company. Carbiz will retain a 50 percent equity position in the joint
venture company by contributing intellectual property and permanent,
non-exclusive license agreements. The joint venture company's objective
is to open five credit centers in addition to Carbiz's corporate stores
over the next five years. At the completion of this strategy, the joint
venture company plans to implement a dividend policy for distribution of
earnings, on an equivalent basis, to the joint venture shareholders.
Carbiz will consider executing one additional joint venture in 2005.

"The joint venture in the Carbiz Auto Credit Center division is a solid
business move for the company as we continue to execute our expansion
strategy," said Carbiz President Richard Lye. "This innovative approach
enhances opportunities to increase revenues and drive earnings from our
auto credit division while minimizing risk."

About Carbiz Inc.

Based in Sarasota, Florida and Toronto, Canada, Carbiz is a leading
provider of Internet and software solutions to the North American
automotive industry. Carbiz's suite of business solutions includes
dealer software products focused on the finance, sub-prime finance and
"buy-here, pay-here" markets. Carbiz has 40 full-time employees and
provides finance solutions, lead generation, Internet capability and
training services. Carbiz supports more than 3,000 dealers with a
recurring revenue model, in addition to individual product sales. Carbiz
also offers a U.S. tax refund service and provides refund anticipation
loans through it centralized facility in Clearwater, Florida that
employs 90 people on a seasonal basis.

In 2004, Carbiz began leveraging its industry knowledge and software
products into company-owned credit centers, which offer financing on
used automobiles to customers with poor credit. Carbiz opened its first
two credit centers in Palmetto and St. Petersburg, Florida in 2004. The
company intends to open two additional credit centers in Florida in
2005. Each credit center originates, funds, manages and collects loans
for vehicles sold to customers.

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 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. 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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Media Contact:
    Heidi Smith Communications, Inc.
    Heidi Smith
    (941) 504-2803
    or
    Company Contact:
    Carbiz Inc.
    Carl Ritter
    Chief Executive Officer
    (941) 952-9255, ext. 1014
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.