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Carbiz.com Inc. - Acquires Financial Business Systems Inc. - 850 Automotive Dealer Customers in the U.S.

24 April 2000

Carbiz.com Inc. - Acquires Financial Business Systems Inc. - 850 Automotive Dealer Customers in the U.S.

    TORONTO--April 24, 2000--Carbiz.com Inc. is pleased to announce that it has signed a letter of intent to acquire Financial Business Systems Inc.('FBS') of Chesapeake Virginia.
    The purchase price is US$1,250,000 in cash and shares of Carbiz.com subject to regulatory approval, with an expected closing in May 2000. FBS, founded in 1981, is one of the largest and most recognized used car dealership software companies in the U.S. It has approximately 850 automotive dealer customers across the U.S., which generated revenue of US$868,000 and pre-tax income of US$220,000 in the latest fiscal year ended September 30,1999. Interim six months results to March 31,2000, delivered revenue of US$698,000 and pre-tax income of US$212,000.
    FBS has a full line of successful software products in several profit centers of dealerships including Finance and Insurance ("F&I"), Sub-Prime, Buy-Here Pay-Here and Rental Car programs. FBS is a DOS-based software company, which can take advantage of the upgraded Carbiz.com Windows and Internet-based products by migrating them out to their extensive customer base. The market opportunity for Carbiz.com centers on the fact that there are 70,000 used car dealerships in the U.S., over half of which are not computerized and where DOS-based products are still used in quantity.
    FBS also has a great marketing partner and a unique indirect sales force through a Fortune 1000 company which generates 50 new qualified software leads per month.
    The acquisition of FBS combined with the previously announced acquisition of Advanced Dealer Services in Sarasota Florida will provide Carbiz.com with a nationwide sales force in the United States for the rollout of the Enterprise Solution, Carbiz.com's recently launched ASP web-enabled product. Carbiz.com now has a total of 2400 automotive dealer customers located throughout North America and is well on its way to achieving its yearend goal of 5000 dealership customers.