CAR GROUP LIMITED — Capital/Financing Update 2012

May 24, 2012

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carsales.com unwinds investment in Torpedo7

May 25, 2012

carsales.com Ltd (ASX: CRZ) today announced that it has mutually agreed to unwind its minority investment in New Zealand online retailer Torpedo 7.

Due to unforeseen circumstances, carsales and the founders and directors of Torpedo7 have mutually agreed to rescind all agreements entered into by carsales and Torpedo7.

This agreement is the result of circumstances isolated to the Torpedo7 business and has no impact either immediate or ongoing, on carsales.

“While it is disappointing to have reached this outcome, both parties agree that rescinding the agreement is the best outcome for all involved.” commented Greg Roebuck, Managing Director and CEO of carsales.com Ltd.

“Torpedo 7 has achieved a lot of positives since its inception and the relationship remains such that we are looking forward to an ongoing commercial arrangement.

Carsales remains focussed on acquiring businesses that can contribute to its growth strategy and enhance its leadership position in the online advertising industry. I would like to wish Torpedo 7, their Directors and owners, the best for the future.”

About carsales.com Ltd.

carsales.com Ltd listed on the ASX in 2009 and is the largest online automotive, motorcycle, marine and industry classifieds business in Australia. Our sites attract more Australians interested in buying or selling cars, motorcycles, trucks, boats, farm equipment, construction equipment, caravans, etc, than any other classified business. carsales.com Ltd's first revenues were reported in the financial year 1998. The company is one of only a few to have made the BRW Fast 100 for five consecutive years. carsales.com.au is Australia’s number one automotive website and in December 2011 served more than 9 million sessions and over 220 million page impressions*. The Carsales Network of websites includes carsales.com.au; bikesales.com.au; boatsales.com.au; trucksales.com.au; quicksales.com.au, motoring.com.au and redbook.com.au.

* Nielsen Online Market Intelligence, Automotive, Brand, December 2011

For further information, please contact:

Greg Roebuck CEO and Managing Director 03 9093 8600

Cameron McIntyre CFO 03 9093 8600