Carbiz.com Inc. - Acquires Advanced Dealer Services, Inc.

30 March 2000

Carbiz.com Inc. - Acquires Advanced Dealer Services, Inc.

    TORONTO--March 30, 2000--Carbiz.com Inc. (CDNX:CZ.) is pleased to announce that it has completed the acquisition of all of the issued and outstanding shares of Advanced Dealer Services, Inc. ("ADS"), a supplier of automobile after-market products located in Sarasota, Florida.
    The aggregate purchase price for the shares of ADS was U.S. $1,957,820. This amount was paid on closing as follows: (i) the assumption and repayment by Carbiz of a long term loan owed to a U.S. chartered bank in the amount of U.S. $480,000, (ii) the assumption and repayment by Carbiz of ADS trade debt of approximately U.S. $210,000, payable at the option of Carbiz in shares or over a two year term, (iii) the repayment at closing of ADS shareholder loans in the approximate amount of U.S. $325,000 by the issuance of 86,103 Common Shares of Carbiz at the closing price on March 28, 2000 of $5.50 per share, (iv) a cash payment of U.S. $75,000, and (v) the remainder of the purchase price of approximately U.S. $745,800 was paid by the issuance by Carbiz from treasury of 197,165 common shares at the closing price on March 28, 2000 of Cdn. $5.50 per share. The purchase price is subject to adjustment based on the amount of working capital in ADS as of closing.
    All shares received by ADS shareholders on closing have been escrowed on a "timed release" basis, with 1/3 of the shares being released on each of the first, second and third anniversaries of the closing.
    In 1999, ADS had revenue of U.S. $1.26-million and net tangible assets of approximately (U.S. $698,000), with a net loss of U.S. $345,370. ADS provides software products which facilitate lending in the Buy-Here-Pay-Here financing market, which is another tier of consumer lending at the dealership level and a very large market in the United States. ADS has a strong presence in the Chicago, Minnesota and Florida markets.
    The combination of Carbiz and ADS business operations is expected to generate up to $500,000 in reduced overhead. The acquisition of ADS will provide Carbiz.com with a strong United States presence and a beach-head for the rollout of the Enterprise Solution, Carbiz.com's recently launched Web-enabled product.
    Carbiz.com is a Toronto-based company that provides software and Internet solutions for the automobile retail industry in North America. The web site offers consumers a source for finding new and used vehicles as well as auto parts and services through the Internet. Other software products include programs for sales and forecasting, human resource management, service merchandising, scheduling and billing, financing and insurance, leasing, and parts and vehicles locators.

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