Carbiz Inc.

Carbiz Inc.

March 14, 2005 07:00 ET

Carbiz Inc. Reports Corporate Developments


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CARBIZ INC.

TSX VENTURE SYMBOL: CZ

MARCH 14, 2005 - 07:00 ET

Carbiz Inc. Reports Corporate Developments

SARASOTA, FLORIDA--(CCNMatthews - March 14, 2005) - Carl Ritter, chief
executive officer of Carbiz Inc. (TSX VENTURE:CZ) ("Carbiz") or ("the
company"), announced the following:

OTC Bulletin Board Listing

Carbiz Inc. accountants are continuing the conversion of historical
financial statements to comply with U.S. GAAP, which has taken longer
than expected. Once the statements are finalized, it is anticipated that
it will take a few months to complete the regulatory and filing process
for Carbiz to become a reporting issuer under U.S. securities
legislation. The company's move to the OTC Bulletin Board should occur
in the latter part of the second quarter or in the third quarter of this
fiscal year.

As previously announced, during the period leading up to October 12,
2004, convertible debentures with a face value of $1,614,030 gross CDN
were issued. These debentures will automatically convert to 7,336,487
Common Shares and 11,004,721 Share Purchase Warrants (the "Original
Warrants") on the listing of the Corporation's shares on the OTC
Bulletin Board.

Pursuant to the terms of the debentures, 220,095 additional warrants
(the "Additional Warrants") will be issued if the listing is not
obtained prior to April 10, 2005. These Additional Warrants are equal to
2 percent of the Original Warrants and are issued on conversion of the
debentures. Further Additional Warrants equal to 1 percent of the
Original Warrants are to be issued on conversion of the debentures for
every subsequent 30-day period in which the OTC Bulletin Board listing
has not been obtained. No more than 660,283 Additional Warrants (equal
to 6 percent of the Original Warrants) may be issued under the
debentures.

Carbiz Auto Credit Division

Carbiz will continue expansion of its auto credit division by opening a
joint-venture-owned Carbiz Auto Credit Center in May at 4102 North
Florida Avenue, in Tampa, Florida. Carbiz recently announced a joint
venture agreement to accelerate expansion in the credit center division.
It is anticipated that an additional credit center will be opened later
in 2005, with more centers planned as cash flow permits. Management is
considering a second joint venture to further accelerate growth in the
auto credit division.

Q1 Expectations

The auto credit division is expected to deliver a net profit to Carbiz
in the first quarter ending April 30, 2005. This profit comes less than
one year following the opening of Carbiz's first two wholly owned credit
centers. Carbiz also operates software, consulting and tax processing
divisions which are on target to generate net operating profits and
positive cash flow in the first quarter of 2005.

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 its individual product sales.
Carbiz also offers a U.S. tax refund service and provides refund
anticipation loans through its 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 low credit scores. 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:
    Heidi Smith Communications, Inc.
    Media Contact: Heidi Smith
    (941) 504-2803
    or
    Carbiz Inc.
    Company Contact: 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.