CarMax Raises Fourth Quarter Earnings Expectations

RICHMOND, VA - March 11,2006: CarMax, Inc. today announced that for the fourth quarter ended February 28, 2006:

* Earnings per share are now expected in the range of 37 cents to 39 cents, compared with 28 cents per share in the fourth quarter last year and substantially above original earnings expectations for the quarter.

* Comparable store used unit sales declined 3%, which is near the low end of the company's original range of expectations.

On December 21, 2005, CarMax had estimated fourth quarter comparable store used unit sales performance in the range of -4% to +2% and earnings per share in the range of 25 cents to 31 cents.

"Our fourth quarter earnings will be stronger than expected, primarily as a result of continued strong increases in wholesale sales and profits," said Austin Ligon, president and chief executive officer. "Our new expectations also include approximately 2 cents per share from favorable adjustments at CarMax Auto Finance.

"We had a particularly challenging comparison to last year's 12% used unit comps, which included 5 percentage points attributable to rolling out a new subprime finance provider," said Ligon. "This year, subprime-financed sales represented only approximately 2% of our fourth quarter unit sales, as a result of program changes implemented by the provider. Absent this decline, we would have been slightly above the mid-point of our original comp expectation range." Full details of the current quarter's performance will be included in the company's fourth quarter earnings release.

For the fiscal year, comparable store used unit sales increased 4% and earnings per share are estimated in the range of $1.38 to $1.40, representing growth of between 29% and 31% compared with the $1.07 per share earned in fiscal 2005.