SOURCE: Carbiz Inc.

March 27, 2007 13:32 ET

Carbiz Inc. Details Its Intended Expansion Plan Called "Fifteen in 2010"

SARASOTA, FL -- (MARKET WIRE) -- March 27, 2007 -- Carl Ritter, chief executive officer of Carbiz Inc. (OTCBB: CBZFF) ("Carbiz"), is pleased to announce that the expansion of the CarBiz Auto Credit Division has begun. "Fifteen in 2010" simply means that CarBiz intends to seek to operate 15 car lots by the year 2010. CarBiz currently operates 3 car lots in the state of Florida.

Carl Ritter stated, "This scalable expansion will create incremental growth for Carbiz as we expand each year with both same-store growth and new store openings and operation. We believe our strategy is simple: as we sell and finance additional vehicles to consumers, our finance portfolio should grow. As our finance portfolio grows, the amount that we may draw down on the credit facility with Colossus Capital Fund, L.P. that we previously announced should grow as well. We should then have the ability draw down the credit facility against the finance portfolio which should allow us to purchase additional automobiles for sale and financing to customers and allow us to gradually open new car lots as well."

Historically, Carbiz's 3 existing car lots, when fully funded with appropriate inventory levels, have performed at an average sales rate of 15 finance sales per month. Based on Carbiz's internal projections, management believes that if a sales rate of 15 finance sales per month is achieved at each car lot and the charge-off rates are managed within industry guidelines, as each new Carbiz Auto Credit facility achieves a total of 200 customer accounts the company will have access to enough funding to open a new car lot every 3 to 5 months, subject to regulatory requirements. Management expects that Carbiz can open its next car lot in June 2007. There can be no assurance, however, that such milestones will be achieved or that the company will be able to utilize the credit facility detailed herein to expand as quickly or extensively as described herein.

About Carbiz

Based in Sarasota, Florida, Carbiz is 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. Carbiz also operates "buy-here pay-here" dealerships in Florida through its Carbiz Auto Credit division that are wholly owned or joint venture companies. 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 Carbiz seeks to expand its operations in Florida in the future. For more information about Carbiz and its services, visit Carbiz's web site: www.carbiz.com.

This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.

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, projections and objectives of Carbiz, Carbiz's ability to successfully use the credit facility to fund its expansion, the rate at which Carbiz's car lots will expand and the date the next Carbiz car lot will open. 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, Carbiz's ability to measure the default rate of its borrowers, the accuracy of Carbiz's projections and the assumptions contained herein, competition, the ability of Carbiz to use the credit facility effectively and as intended, the impact of any changes in applicable government regulation and general economic conditions and the other risk factors describe in Carbiz's form SB-2 registration statement filed on September 2, 2006 with the U.S. Securities and Exchange Commission. 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.

Contact Information

  • Company Contact:
    Carl Ritter
    Chief Executive Officer
    Carbiz Inc.
    (941) 952-9255, ext. 1014

    Mercantile Ascendency
    214-461-3500