Carbiz Announces Expansion Strategy

SARASOTA, Fla.--April 1, 2004--Carl Ritter, Chairman and Chief Executive Officer of Carbiz Inc. (TSXV:CZ) is pleased to announce the completion of the first portion of its non-brokered private placement for an aggregate 1,054,157 units of Carbiz at a price of $0.30 per unit for gross proceeds of Cdn $316,247. Each unit consists of one common share and one warrant, with each warrant exercisable into one common share until March 31, 2005 upon payment by the holder of $0.30 per common share. All of the securities will be subject to a 4-month hold period in accordance with applicable securities laws. Final closing is subject to regulatory and stock exchange approval.

Carbiz (TSX VENTURE:CZ) anticipates the second closing of the private placement will occur, within the next month, on the same terms and conditions. In total, the maximum number of units issued will not exceed 4,166,667 units.

Carbiz has been a leading consultant to businesses across the United States that specialize in the Buy-here Pay-here finance business. Utilizing this experience, Carbiz plans to open its first corporately owned "Carbiz Credit Center", a Buy-here Pay-here dealership, in Palmetto Florida in April 2004. A second Credit Center is scheduled to open later this year. Each Credit Center will generate revenue by underwriting short-term finance contracts for "credit-challenged" consumers. The size of the Buy-here Pay-here industry is estimated to be approximately US$50 Billion by the National Buy-here Pay-here Dealers Association.

Mr. Ritter explains: "Over the last year we have worked to position the company for this new growth strategy. Our strength, over the past few years, has been focused on providing software and consulting to the Buy-here Pay-here dealer market. This market is best described as the specialty consumer finance business. The Buy-here Pay-here business is about underwriting and collections in a low, or poor credit market. Our business model and expertise in this area make this growth strategy a logical next step for Carbiz. Each Credit Center that we open is structured to be profitable in the first year and the opportunity exists to open multiple Credit Centers, initially, in the State of Florida."

Carbiz has also issued 500,000 options to directors and insiders at an exercise price per common share of $0.30 cents. The options will also be subject to a 4-month hold period in accordance with applicable securities laws and will expire on March 31, 2009.

Based in Toronto and Sarasota, Florida, Carbiz Inc., is a leading provider of Internet and software solutions to the North American automotive industry. Carbiz's suite of business solutions include dealer software products focused on the finance, sub-prime finance, buy-here pay-here finance solutions, lead generation, Internet and training services. Carbiz has provided thousands of products to dealers in the U.S., Canada, and other countries and currently supports over 3000 dealers with a recurring revenue model plus individual product sales.

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.com Inc. 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. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Carbiz Inc.

93 Skyway Avenue, Suite 210

Toronto, ON M9W 6N6

Tel: (416) 391-2594

Fax: (416) 391-4824

ir@carbiz.com

www.carbiz.com

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and neither approved nor disapproved the contents of this press release.