CAR GROUP LIMITED — Capital/Financing Update 2009

Sep 8, 2009

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MEDIA RELEASE – FOR IMMEDIATE RELEASE

Successful Completion of carsales Share Offer

September 9: carsales.com Limited (" carsales "), the market leader in the Australian online automotive advertising market, today announced the successful completion of its initial public offering ( “Offer” ). The Offer closed on the September 7, 2009 with strong demand from both retail and institutional investors. The Offer will allow carsales to broaden its shareholder base, provide a liquid market for its shareholders and assist it in attracting and retaining quality staff.

The Offer comprised of the sale of approximately 46.39 million existing shares and the issue of 0.35 million new shares ( “New Shares” ). Based on the offer price of $3.50, carsales will have a market capitalisation of approximately $811.8 million at listing. The total proceeds from the Offer will be $163.6 million.

The proceeds from the issue of New Shares will be used by carsales to pay a portion of the costs of the Offer. The proceeds from the sale of existing shares (net of costs) will be received by the selling shareholders.

Commenting on the completion of the Offer, carsales chairman Walter Pisciotta said:

“The successful completion of the Offer represents a significant milestone for the company. In listing on ASX, carsales has fulfilled a long standing commitment to our shareholders, providing them with the opportunity to crystallise their investment in carsales. An ASX listing is the next step in carsales’ development and the success of the Offer is a testament to the hard work of all our management and staff who all remain committed to the next stage of carsales’ growth.”

Greg Roebuck, Managing Director and Chief Executive Officer said,

“We are delighted with the strong response from both institutional and retail investors and excited about the future of our business as a listed company. carsales is a clear market leader in a big classifieds category which quite simply works better online.

“The business has demonstrated its resilience, delivering a 33% increase in revenues and a 64% increase in profit last financial year. We are well positioned to continue to capitalise on the continued migration of the classifieds market from print to online and to grow advertising volumes, yield and new products.”

From 10am (AEST) Thursday, September 10, 2009, Applicants under the Priority Offer will be able to call the carsales Offer Information line on 1800 502 461 (toll free within Australia) or +61 3 9415 4306 (outside Australia) to confirm their allocations.

carsales shares are expected to commence trading on the ASX on Thursday 10 September 2009 at approximately 11.30am AEST, on a deferred settlement basis, under the ASX code of CRZ.

For further information please contact:

Carsales.com Limited Nightingale Communications Greg Roebuck Lisa Keenan: 0409 150 771 Managing Director and CEO Kate Inverarity: 0413 163 020 Tel: 9093 8667 Tel: 03 9614 6930

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NOTES TO EDITORS:

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The Company

Since first registering the carsales.com.au domain name in 1997, carsales has grown to be a successful business in a fast-growing industry. carsales is now the largest online automotive, motorcycle and marine classifieds business in Australia, attracting more Australians interested in buying or selling cars, motorcycles and boats than any other classified group of websites. Through an attractive portfolio of websites, carsales is able to cater to dealers and private vendor’s alike, achieving widespread coverage of the automotive, motorcycle, industry and marine classifieds and display advertising markets.

carsales’ Business Operations

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carsales’ leading position in the automotive advertising market, and its established relationships with industry participants, underpin its strong financial position. For the year ending 30 June 2010 carsales expects to generate revenue and EBITDA of $115.2 million and $56.6 million respectively, representing compound annual growth of 36% and 49% respectively for the three year period from 30 June 2007.

carsales’ Revenue and EBITDA Performance

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Industry Overview

The online classifieds and display advertising markets in which carsales’ businesses operate continue to benefit from the general migration of advertising expenditure from print media to online.

carsales believes there are significant advantages to advertising online, rather than in print media - for both buyers and sellers. These advantages will, in carsales’ view, continue to drive the growth of the online sector and result in online operators continuing to win existing market share from the print media sector.

Currently only 22% of total classified spend in Australia is online.[1] The automotive classifieds advertising market in 2008 was estimated at $87 million and is forecast to grow at a compound annual growth rate of 22% per annum between 2008 and 2012.[2] carsales is the clear market leader in online automotive classifieds advertising with 58% market share by revenue in 2008.[2 ]

Australian Online Automotive Classifieds Industry Forecast

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Source: Frost & Sullivan

1CEASA, Note: Print classifieds includes newspapers only

2 Frost & Sullivan

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