Carbiz Seeks OTC Listing and Announces Expansion Financing

SARASOTA, Fla.--Sept. 2, 2004--Carl Ritter, Chief Executive Officer of Carbiz Inc. (TSX VENTURE:CZ) is pleased to announce that, as a result of its rapidly expanding business in the United States, Carbiz is seeking a listing on the United States Over the Counter Bulletin Board (the "OTC-BB").

Mr. Ritter noted "With virtually all of our business occurring in the United States, including a growing U.S. shareholder base, moving to the OTC-BB made sense".

In conjunction with its OTC-BB listing application, Carbiz will be completing a brokered 5% convertible debenture financing of between $750,000 and $2 million US for the expansion of its Credit Center operations. Upon listing of the Carbiz common shares on the OTC-BB and concurrent delisting from the TSX Venture Exchange (the "Conversion Date"), the principal and interest amount of the debentures will be automatically converted into units ("Units") at a conversion price of $0.22 CDN per Unit. Each Unit will consist of one Carbiz common share (a "Share"), one class A purchase warrant (a "Class A Warrant") and one-half of one class B purchase warrant. Each whole Class A Warrant will be exercisable into one Share at a price of $0.23 CDN per Share and each whole class B purchase warrant (a "Class B Warrant") will be exercisable into one Share at a price of $0.30 CDN per Share. Both warrants (collectively, the "Warrants") issued will be exercisable for a period of five (5) years following the Closing Date.

Carbiz has engaged Innovation Capital, LLC of Florida, (the "Agent") as agent for the debenture financing. Upon Closing, the Agent shall receive a commission equal to 10% of the gross proceeds of the financing. On the Conversion Date, the Agent shall also receive warrants equal to an aggregate 10% of the number of Units to be issued on the Conversion Date. Each warrant (an "Agent Warrant") shall be exercisable into one Share upon payment of $.22 CDN and one Class A Warrant upon payment of $0.23 CDN for a period of five (5) years following the Closing Date. The Agent Warrants shall also have customary piggyback registration rights, a cashless exercise provision and anti-dilution provisions with respect to stock splits, stock dividends, and similar re-capitalizations. Also, the Agent shall receive a 2% cash fee on the exercise of Warrants exercised within 12 months of the Conversion Date.

Mr. Ritter commented "Credit Center operations provide a unique opportunity for us to create significant and sustainable growth and profitability, in the short term, and beyond. This natural evolution of our core competencies can place Carbiz in a position to be the very best in the business. Over the next few months we intend to use this financing to ramp up additional Credit Center operations and deliver results to our the bottom line".

Based in Toronto, Canada 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 and buy-here pay-here markets providing finance solutions, lead generation, Internet capability 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, in addition to 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.
3044 Bloor Street West, Suite 930
Toronto, ON M8X 2Y8

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CARBIZ INC. (TSX VENTURE:CZ)