Carsales Ipo Prospectus Lodgment

Media Release

17 August 2009

carsales announces Initial Public Offering

carsales.com Limited ("carsales"), the market leader in the Australian online automotive advertising
market, today lodged a prospectus with The Australian Securities and Investments Commission with
the intention of listing its shares on the Australian Stock Exchange in an Initial Public Offering ("IPO").



The Offer

The number of shares to be offered will be between 42.9 and 71.1 million, representing between
18.5% and 30.7% respectively of the shares outstanding pre offer, at a price of $3.50 per share,
resulting in an offer size of between $150.0 million and $248.7 million. The market capitalisation of
carsales at the time of listing is expected to be $811.8 million.

Those Directors of carsales who have sold shares in the IPO will retain 50% of their shareholdings,
while carsales founder, Managing Director and Chief Executive Officer Greg Roebuck will retain
approximately two thirds of his investment. carsales' largest shareholder, ACP Magazines Limited (a
wholly owned subsidiary of PBL Media Holdings Pty Ltd ("PBL Media")) is supportive of the carsales
business and its growth potential and currently intends to retain all of its 49.3% shareholding.

The actual number of shares to be offered will depend on the number of shares sold by certain
existing shareholders, to be determined towards the end of the retail offer period. The retail offer
(comprising a priority offer and a broker firm offer) will open on 25 August 2009, with the priority offer
closing on 1 September 2009 and the broker firm offer closing on 7 September 2009. There will not be
a general public offer. It is expected that carsales shares will commence trading on the ASX on 10
September 2009 on a deferred settlement basis.

The shares offered under the IPO will predominantly comprise shares being sold by those existing
shareholders who are selling their shares. carsales will also issue a small number of new shares to
pay a portion of the costs of the IPO.

Commenting on the announcement, carsales Chairman Walter Pisciotta said,

"Today represents a substantial milestone for the company. I am very pleased to have fulfilled a long
standing commitment to our original shareholders to provide an opportunity for them to realise their
investment in carsales. The success of this business is testament to the hard work and commitment of
our management and staff, led by Greg Roebuck who will retain the majority of his shares, and
remains absolutely committed to continuing to grow this business."

Greg Roebuck, Managing Director and Chief Executive Officer said,

"carsales started over twelve years ago with effectively no vehicles for sale and today we are the
market leader in online automotive classifieds with 150,000 cars listed for sale from approximately
2,300 dealers and tens of thousands of private sellers. Our sites are, and will always be, about selling
not advertising we help people who own stuff, sell stuff. Our business model, which is unique in the
industry, reflects that view and has contributed to the success of our sites and underpinned our strong
financial performance so far."













"With a business proposition that works, and clear growth prospects, we are well placed to benefit
from the continued migration of classifieds from print to online."

PBL Media Chief Executive Officer and Non-Executive Director of carsales, Ian Law said, "PBL
Media is very supportive of the carsales business model and its growth potential. We intend to
remain a shareholder and participate in the future growth of the business. We have given support
to an IPO process to provide liquidity to smaller shareholders."



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 vendors alike,
achieving widespread coverage of the automotive, motorcycle, industry and marine classifieds and
display advertising markets.

carsales' Business Operations








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.























Maintaining strong earnings growth continues to be a focus for the business. carsales aims to grow
through a combination of organic growth across existing businesses, leveraging its fixed cost base,
and innovation.

carsales' Revenue and EBITDA Performance







Source: carsales



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







Source: Frost & Sullivan

1CEASA, Note: Print classifieds includes newspapers only.

2 Frost & Sullivan












The sole lead manager and underwriter of the IPO is Macquarie Capital Advisers Limited.

The securities are being offered for issue by carsales, and for sale by certain vendor shareholders.
The prospectus will be available during the exposure period at http://shareholders.carsales.com.au.
The offer of shares will be made in, or accompanied by a copy of the prospectus. A person should
consider the prospectus when deciding whether to acquire the shares. Anyone who wants to
acquire the shares will need to complete the application form that will be in or will accompany the
prospectus.



For further information please contact:

Greg Roebuck
Managing Director and CEO
carsales.com Limited
Tel: 03 9093 8600

Geoff Carrick nightingale communications
Division Director Tel: 03 9614 6930
Macquarie Capital Advisers Lisa Keenan: 0409 150 771
Tel: 02 8232 4192 Kate Inverarity: 0413 163 020