Carbiz Inc. Announces Joint Venture

SARASOTA, Fla.--Feb. 2, 20058, 2005--Carl Ritter, chief executive officer of Carbiz Inc. (TSX VENTURE:CZ) ("Carbiz"), announced that Carbiz has entered into a joint venture agreement to accelerate its previously announced expansion into the auto credit business. The joint venture agreement proposes to add one Carbiz Auto Credit Center in Florida in May and four additional credit centers as cash flow permits.

Carbiz remains committed to opening additional wholly-owned corporate credit centers but will also launch joint venture credit centers to protect the company's cash position while maximizing operational capacity. The innovative, joint venture strategy will strengthen the Carbiz balance sheet immediately, accelerate growth, reduce risk and protect shareholder value by expanding more rapidly without dilution.

The joint venture will be funded entirely by the joint venture partner, who is a member of the Carbiz Board of Directors, through a $500,000 US investment for 50 percent of the capital stock of the joint venture company. Carbiz will retain a 50 percent equity position in the joint venture company by contributing intellectual property and permanent, non-exclusive license agreements. The joint venture company's objective is to open five credit centers in addition to Carbiz's corporate stores over the next five years. At the completion of this strategy, the joint venture company plans to implement a dividend policy for distribution of earnings, on an equivalent basis, to the joint venture shareholders. Carbiz will consider executing one additional joint venture in 2005.

"The joint venture in the Carbiz Auto Credit Center division is a solid business move for the company as we continue to execute our expansion strategy," said Carbiz President Richard Lye. "This innovative approach enhances opportunities to increase revenues and drive earnings from our auto credit division while minimizing risk."

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 individual product sales. Carbiz also offers a U.S. tax refund service and provides refund anticipation loans through it 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 poor credit. 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

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)