RICHMOND, Va. (February 21, 2007) - CarMax, Inc., (NYSE: KMX), the nation’s largest retailer of used cars, officially opened its second store in Austin, Texas today. The new CarMax superstore is located at 4400 South Interstate Highway 35 in Austin. The store is 20,000 square-feet, employs more than 60 associates and stocks 300 to 400 vehicles of nearly every make and model. This is the second CarMax store in Austin.

"We have revolutionized the way consumers buy cars," said Tom Folliard, president and chief executive officer of CarMax. "Austin area residents now can choose from two locations in which to have a no-hassle, no-haggle, fun and easy car shopping experience at CarMax, the pioneer of the used car superstore."

More than 200 local dignitaries and CarMax associates attended a grand opening preview event at the superstore today. The event included a "Road Rally" for charity featuring local television personalities competing in a driving challenge, which included parallel-parking and pack-the-trunk events. CarMax donates $1,000 to each participant’s charity, and the winner’s charity receives an additional $1,000. The Road Rally participants included KEYE - TV Chief Meteorologist Byron Webre, KVUE - TV News Anchor Tyler Sieswerda, and KTBC - TV Morning Anchor Joe Bickett.

CarMax opened its first store in Richmond, Virginia more than 13 years ago after the company surveyed thousands of consumers to find out what they liked and disliked about car shopping. CarMax was designed according to the survey responses, giving consumers what they asked for:

Low Prices

• No hassles, no haggling on all four parts of the car purchase
  - Price of the vehicle
  - Price of the extended service plan
  - Price of the financing
  - Price of the "trade-in," a written cash offer good for seven days whether or not the customer buys a car from CarMax
• All sales people are paid the same, no matter which car is sold (except Calif. associates)

Broad Selection

• Hundreds of vehicles on every lot (average 300 to 400 per store)
• Nearly every make and model (both domestic and import used vehicles)
• Used vehicles that are generally one to six years old with less than 60,000 miles
• More than 20,000 vehicles online at carmax.com
• Transfer any used car to the store nearest you

Great Quality

• Guaranteed quality cars and no flood or frame-damaged vehicles
• Thoroughly inspected and reconditioned vehicles
• Five-day money back guarantee and a limited 30-day warranty

Customer Friendly

• A For Kids Only supervised play area
• CarMax will buy any car, whether or not the seller purchases a CarMax vehicle

Austin area residents can also preview CarMax vehicles by logging onto www.carmax.com. The website features actual prices and photos of more than 20,000 CarMax vehicles available nationwide. Prospective car buyers can have a vehicle transferred from another CarMax store location to the Austin store for a fee. Transfers from either CarMax store in Austin are free.

About CarMax

CarMax, a FORTUNE 500 company, and one of the FORTUNE 2007 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 77 used car superstores in 36 markets. CarMax also operates seven new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended November 30, 2006, the company sold 323,570 used cars, which is 94% of the total 342,482 vehicles the company retailed during that period. For more information, access the CarMax website at www.carmax.com.

Media Contacts:

Lisa Van Riper, Assistant Vice President, Public Affairs, Office (804) 935-4594, Cell (804) 337-1568
Trina Lee, Public Relations Manager, Office (804) 747-0422 ext. 4197, Cell (804) 380-2442

Investor Contacts:

Katharine Kenny, Assistant Vice President, Investor Relations, (804) 935-4591
Celeste Gunter, Manager, Investor Relations, (804) 935-4597