CAR GROUP LIMITED — Earnings Release 2011

Aug 15, 2011

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MEDIA RELEASE – FOR IMMEDIATE RELEASE Continued growth at carsales

August 16, 2011

carsales.com Limited ( ASX: CRZ) t o day announc e d the releas e of its financial results for F Y2011.

For the 2 011 financial year the com p any reported a net profit a f ter tax (NPA T ) of $58.3 mi l lion. This rep r esents an incre a se of 35 per c ent compare d to the same period in FY 2 010 (FY2010, $43.2 millio n ). Total oper a ting revenue o f $152.5 million was up 2 6 per cent. ca r sales.com Lt d ’s EBITDA margin increas e d from 53 per cent in FY2010 t o 55 per cent.

carsales.com Ltd’s Bo a rd of Directo r s has declar e d a fully fran k ed interim di v idend of 10. 5 cents per sh a re (FY2010 , 8.3 cents per share) to be paid on Octo b er 5, 2011. T he record da t e for the divi d end payment is Septem b er 21, 2011.

RESULTS OVERVIE W

$A M illions Gr owth	$A M illions Gr owth
Year E nding 30 Ju ne 2011 FY2010	FY2011 $'s %
Operat Revenue ing Revenue ) Online Ad Data & Re (Excluding Int vertising search erest 105.2 15.4 133.5 19.0 28.3 3.6 27% 23%
TotalO perating Re venue 120.6 152.5 31.9 26%
Operat EBITD ing Expense A s(Before Inter est and D&A) 56.1 64.5 68.7 83.8 12.6 19.3 22% 30%
EBITDA D&A EBIT Margin 53% 2.3 62.2 55% 2.7 81.1 0.4 18.9 17% 30%
Net Inte Profit B rest Expens efore Tax e 0.2 62.0 (1.0) 82.1 (1.2) 20.1 (600%) 32%
Income Tax Expens e 18.8 23.8 5.0 27%
Net Pro fit After Ta x 43.2 58.3 15.1 35%
Earning s Per Share (cents) 18.6 25.0 6.4 34%
Net Op Capex erating Cash flow (Before Capex) 50.4 2.1 60.1 1.4 9.7 (0.7) 19% (33%)

carsales.com Ltd CEO and Managing Director, Greg Roebuck said the c o mpany’s str o ng full year financial results were the outco m e of the “co n tinued focus on the delive r y of innovative, high value s olutions to it s growing custome r base” .

In additi o n to tradition a l automotive d ealer-based income, cars a les.com Ltd p erformed str o ngly in displ a y and private a d vertising rev e nue growth a cross autom o tive and the o ther verticals. Research a n d business t o business revenue stre a ms were als o up.

“The automotive business was delivered a series of unique challenges during FY2011 and the strong performance of carsales, despite the Industry setbacks, was very pleasing. The company has continued on its trajectory of growth,” Mr Roebuck stated.

“Across its various divisions, carsales delivered a number of key initiatives in FY2011. The FY results are an indication of the effectiveness of these initiatives and the growing strength of the online marketplace.

“Our key metrics have improved -- traffic, conversion rates, inventory, revenue, lead delivery, and others. This growth, and our results generally, reflect the automotive consumer’s commitment to online researching, enquiring, buying and selling,” he said.

According to Mr Roebuck Operational and Strategic Highlights during FY2011 included:

• Strong overall automotive enquiry volumes -- up 15% year on year.

• Double-digit automotive private ad volume growth year on year.

• Strong ongoing growth in display advertising – up 51% year on year.

• Significant new car enquiry volume growth – up 29% year on year.

• Real-time data analytics customer acquisition growth.

• Solid growth performances from non-automotive verticals – in particular motorcycles and caravan/camping.

• Mobile sites/Apps continue to deliver significant incremental growth.

• On-market share buyback program commenced with 670,578 shares acquired (and cancelled) by the company in early July.

In summarising the company’s performance, Mr Roebuck stated: “FY10 to FY11 growth was substantial as consumers continue to shift away from our competitors, whether they be online or print, and embrace the carsales.com.au brand.

“Mediamotive, carsales.com Ltd’s display advertising division, has continued to grow strongly and now carries out all of its sales functions in-house. This is an important evolution from what was a completely outsourced model less than three years ago.

“With all mainstream car brands realising more and more that their audience – car buyers – are nearly all online and primarily at carsales, we expect that strong display advertising growth will continue,” Mr Roebuck stated.

“Competitively, our lead in the online space has grown. Although we expect the coming year to see plenty of activity by others trying to regain market share, when you consider that our carsales mobile and app sites alone deliver more page impressions than our major competitors’ desktop and mobile sites combined, it puts us in a great position,” he said.

Mr Roebuck also stated trading for the first six weeks of the new financial year has continued to be solid and the company will provide a further trading update at its October AGM.

Mr Roebuck commented that carsales’ dealer and private seller businesses would remain important foundation stones of the business. He stated key initiatives would be launched in FY2012 to reinforce the company’s position in the automotive and allied sectors.

“At the heart of everything we do, is our singular focus on ‘what we do works’. Private sellers and dealers alike know that we deliver great results and great value,” he said.

About carsales.com Ltd.

carsales.com Ltd listed on the ASX in 2009 and is 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. 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 is Australia’s number one automotive website and in June2011more than 8.8 million sessions and more than 287 million page impressions. The Carsales Network of websites includes CarPoint.com.au, discountnewcars.com.au, quicksales.com.au, Redbook.com.au and motorcycle, boat, truck and machinery websites. The network boasted in excess of 4.8 million unique visitors* in June 2011.

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

** Nielsen Online Site Census, Carsales Network Aggregate, June 2011

For further information, please contact:

Greg Roebuck CEO and Managing Director 03 9093 8667