Spirit Finance Corporation Completes $56 Million Sale/Leaseback Transaction with CarMax, Inc.

SCOTTSDALE, Ariz.--July 13, 2005--Spirit Finance Corporation , a real estate investment trust focused on single tenant, operationally essential real estate, announced that it completed a $56 million sale/leaseback transaction with CarMax, Inc. on June 30, 2005. This transaction is part of the over $1.0 billion in sale/leaseback and mortgage originations and acquisitions previously announced by Spirit.

Christopher H. Volk, President and COO of Spirit Finance stated, "CarMax is a Fortune 500 company, and is one of the premier credits in the automotive retailing industry. The company has a very successful business model, and we are pleased to support their real estate financing needs. The fact that Spirit Finance was able to provide certainty of execution and competitive sale/leaseback pricing enabled us to add value in this transaction. As part of the broad and diverse lines of business Spirit targets, we plan to seek additional financing opportunities within the automotive retailing industry in the future."

About CarMax

CarMax, a FORTUNE 500 company and one of the FORTUNE 2005 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 62 used car superstores in 28 markets. CarMax also operates seven new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended May 3, 20051, 2005, the company sold 264,958 used cars, which is 93 percent of the total 285,354 vehicles the company retailed during that period. For more information, access the CarMax website at http://www.carmax.com.

About Spirit Finance Corporation

Spirit Finance Corporation provides customized, flexible sale/leaseback financing solutions for single tenant, operationally essential real estate assets that are vital to the operations of retail, service and distribution companies. The Company's core markets include free-standing automotive, drugstores, educational facilities, movie theaters, restaurants, supermarkets, and other retail, distribution and service businesses. Additional information about Spirit Finance Corporation is available on the Company's website at www.spiritfinance.com.