Automotive Finance Corporation and CarBiz.com
Intend to Form a Strategic Alliance
DULUTH, Minn., Jan. 25 Automotive Finance Corporation
(AFC), a subsidiary of ALLETE and CarBiz.com Inc. (CDNX: CZ), a
leading provider of software and Internet solutions to the North American
automotive industry, today announced their intention to form a strategic
alliance. Their goal is to expand services to 15,000 certified AFC dealers
and the 6,000-member CarBiz.com dealer base.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010125/MNTH024LOGO-a
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To cement this alliance, AFC entered into a Letter of Intent to exchange
the assets it owns of Micro 21 for 5.4 million shares of CarBiz.com. AFC
would also be granted warrants, subject to regulatory approval, to buy ten
million more shares and the right of first refusal on approximately
8.55 million additional shares.
In the proposed alliance CarBiz.com and AFC would work together to promote
each other's services to their combined dealer network. Some of the software
solutions to be marketed to AFC customers include CarBiz.com's Full Spectrum
e-commerce and Buy Here-Pay Here packages, Lot Tools, Voice Direct telephony
lead generator, and dealer training programs.
"The CarBiz/AFC alliance will offer enhanced product packages combining
inventory and consumer finance, training and technology products," said John
Fuller, CEO and President of AFC. "Micro 21 gave us the footprint we needed
to start offering these services. When the opportunity arose, it was clear
that combining Micro 21 with CarBiz.com, taking an ownership in CarBiz.com,
and establishing a revenue sharing alliance would broaden our range of
technology products. It will also give us the capability to become THE
service association for independent auto dealers."
"By delivering solutions to automobile dealers as an Application Services
Provider, CarBiz and AFC will be able to offer an unprecedented selection of
products and services," said Carl Ritter, CEO of CarBiz.com. "The addition of
Micro 21's products to our suite of services will create a stronger offering
to our customers. This alliance will make us, by virtue of our combined size
and solutions offered, a force to be reckoned with in the automotive
industry."
CarBiz.com is a leading provider of Internet and software solutions to the
North American automotive industry. CarBiz.com's suite of business solutions
includes web services, web site hosting, e-commerce applications, customer
relationship management applications, sales lead generators, data management,
and dealer training and consulting services. Currently, over 6,000 dealers in
Canada, the United States, and Mexico use its solutions to increase their
revenue potential by maximizing their efficiency, and by expanding their
customer base.
Automotive Finance Corporation (AFC) operates more than 80 offices and has
more than 15,000 registered dealers. It is also the largest provider of
independent dealer "floorplanning" services to the automotive industry.
Floorplanning gives approved automobile dealers the ability to obtain short
term loans, typically 30 to 45 days, for the purpose of maintaining their
automobile inventory. Once approved, automobile dealers may purchase their
inventory from AFC's over 400 pre-approved automobile auction sites and other
locations.
ALLETE is a multi-services company with corporate headquarters in Duluth,
Minn. ALLETE's holdings include the second largest wholesale automobile
auction network in North America; the leading provider of independent auto
dealer inventory financing; the largest investor-owned water utilities in
Florida and North Carolina; significant real estate holdings in Florida and a
low-cost electric utility that serves some of the largest industrial customers
in the United States. For more information about ALLETE, visit the company's
web site at http://www.allete.com
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
