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CarBiz Inc.: CarBiz Inc. Releases First-Quarter Earnings

SARASOTA, FLORIDA--(Marketwire - June 16, 2009) - CarBiz Inc. (OTCBB:CBZFF) delivered first-quarter earnings in the amount of $27,271,062. This figure is based primarily on the company's new lender, Dealer Services Corporation, forgiving approximately $31.3 million in debt.

CarBiz CEO Carl Ritter stated that this substantial financial gain places CarBiz in a positive position for the upcoming fiscal year, further strengthening its resources to provide exceptional training and services to its clients.

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 Three months ended Three months ended
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 April 30, 2009 April 30, 2008
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TOTAL REVENUE $ 8,515,374 $ 8,923,272
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TOTAL COST OF SALES 4,867,778 4,799,693
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GROSS PROFIT 3,647,596 4,123,579
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TOTAL OPERATING EXPENSE 3,850,889 4,226,206
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OPERATING INCOME (LOSS) $ (203,293) $ (102,627)
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INTEREST AND OTHER EXPENSES $ (961,832) $ (1,906,421)
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GAIN (LOSS) ON DERIVATIVE INSTRUMENTS (4,763,100) 2,034,358
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GAIN ON EXTINGUISHMENT OF DEBT 33,199,287 -
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NET PROFIT(LOSS) FOR THE PERIOD $ 27,271,062 $ 25,310
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 As at April 30, As at January 31,
 2009 2009
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ASSETS
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Cash and cash equivalents $ 782,833 $ 674,624
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Notes Receivable, Net 7,438,808 20,030,047
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Net investment in leases 11,809,049
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Inventory 5,789,802 2,923,696
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Fixed Assets 624,722 596,415
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Other Assets 552,974 958,243
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TOTAL ASSETS $ 26,998,188 $ 25,183,025
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LIABILITIES
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Accounts Payable $ 4,001,483 $ 4,527,041
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Notes Payable 17,419,342 41,492,765
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Capital Leases 1,327 2,620
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Convertible debentures 347,516 2,110,443
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Drivative Liabilities 10,255,638 11,796,217
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Other Liabilities 81,661 1,985
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TOTAL LIABILITIES $ 32,106,967 $ 59,931,071
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STOCKHOLDER'S DEFICIT
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COMMON SHARES $ 20,818,928 $ 19,364,233
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ADDITIONAL PAID-IN CAPITAL 7,702,447 6,788,937
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OTHER COMPREHENSIVE LOSS (385,197) (385,197)
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ACCUMULATED DEFICIT (33,244,957) (60,516,019)
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TOTAL EQUITY $ (5,108,779) $ (34,748,046)
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TOTAL LIABILITES AND EQUITY $ 26,998,188 $ 25,183,025
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About CarBiz Inc.

Leveraging two decades of industry experience, CarBiz operates 25 Buy-Here Pay-Here (BHPH) credit centers throughout the United States. The company also provides training, consulting, performance groups and management services for dealers seeking to improve their BHPH programs. Recently, CarBiz implemented a Lease-Here Pay-Here service to help dealerships expand their product portfolios.

Forward-Looking Statements

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future growth plans and objectives of CarBiz. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any of our future results or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to the following: (i) whether we are successful in implementing our business strategy; (ii) our ability to increase revenues in the future and to continue as a going concern; (iii) our ability to obtain additional financing on terms favorable to us, if at all, if our operating revenues fail to increase; (iv) our ability to attract and retain key personnel; (v) the impact on the market price of our common shares of the concentration of common share ownership by our directors, officers and greater than 5% shareholders, which may delay, deter or prevent actions that would result in a change of control; (vi) the significant fluctuation of the market price of our common shares; (vii) costly difficulties we may face in the assimilation of the operations, technologies and products of companies that we may acquire in the future; (viii) the adequacy of our insurance coverage to cover all losses or liabilities that may be incurred in our operations; (ix) our dividend policy; (x) the impact on our financial position, liquidity and results of operations if we underestimate the default risk of sub-prime borrowers; (xi) general economic conditions; (xii) general competition; (xiii) our ability to comply with federal and state government regulations; (xiv) potential infringement by us of third parties' proprietary rights; (xv) defects in our products; (xvi) our compliance with privacy laws; (xvii) our ability to obtain adequate remedies in the event that our intellectual property rights are violated; (xviii) our ability to develop and market on a timely and cost-effective basis new products that meet changing market conditions, and (xix) the risk factors identified in our most recent Annual Report on Form 10-K, including factors identified under the headings "Description of Business," "Risk Factors" and "Management's Discussion and Analysis or Plan of Operation."
Although we believe that expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy and completeness of these forward-looking statements. We are under no duty to update any of these forward-looking statements. You should not place undue reliance on these forward-looking statements.