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Carbiz.com Acquires United Autocomp Computer Inc. & NetChoice: Surpasses 5000 Automobile Dealers Year-end Goal

26 May 2000

Carbiz.com Acquires United Autocomp Computer Inc. & NetChoice: Surpasses 5000 Automobile Dealers Year-end Goal

    TORONTO--May 25, 2000--Carbiz.com Inc. (CDNX:CZ) has signed a letter of intent to acquire United Autocomp Computer Inc ('UAC') and a sister company NetChoice Corporation of Irvine, California.
    The purchase price is US$1,100,000 in cash and shares of Carbiz.com subject to regulatory approval, with an expected closing in June 2000. UAC and NetChoice together have approximately 1200 automobile dealer customers on the U.S. west coast primarily in California, which generated combined revenue of US$647,000 in the latest fiscal year ended December 31,1999.
    UAC is the largest Finance & Insurance ('F&I') software company on the U.S. west coast which is a key market for expansion and diversification of Carbiz.com operations. UAC operates through 3 web sites -- www.autodiscount.com, www.dealernetwork.com and www.autocomputer.com. UAC has been in business for over 11 years and has made over 2500 installations of software and systems to dealerships.
    The UAC acquisition, combined with the other 4 previously announced U.S. acquisitions: Advanced Dealer Services, TAXMAX, Financial Business Systems and Computerized Automotive Technologies, reinforces Carbiz.com's leading position in Automotive Finance and Insurance ('F&I') software in North America. Carbiz.com will now have over 5200 automotive dealer customers geographically diversified across North America, which surpasses its year-end target of 5000 dealership customers in only 5 months. Pro-forma these acquisitions Carbiz.com will be at the $9 million annualized revenue run rate based on the most recent year-ends of the individual companies and will have $10 million in cash and no debt.
    Carbiz.com is a Toronto-based company that provides software and Internet solutions to financial institutions and the retail automotive industry resulting in cost savings and efficiencies in the research, purchase and financing of car transactions. Its flagship product, Full Spectrum 2000, is a software program that enables automobile dealers to arrange "on-the-spot" financing for consumers by connecting the dealers to credit bureaus and financial institutions via the Internet. It is particularly effective for "non-prime" or "Special" finance consumers who are unable to obtain credit from traditional lenders such as banks. This is the fastest growing segment of vehicle sales in North America. The Carbiz.com vision is to evolve to an Automotive Financing Portal Providing Consumers with One Stop Shopping and Financing for Automobiles and Auto Services.

    The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release