RICHMOND, Va. (March 31, 2005)—The pioneer of the used car superstore concept and nation’s leading specialty retailer of used cars, CarMax, Inc. (NYSE: KMX) today announced that it has launched a major initiative focused on the Los Angeles market, including:

The opening of two more stores in the market. With the opening of CarMax superstores in Irvine and Ontario, CarMax has a total of five stores in the L.A. market. The retailer’s other three stores are located in Duarte, Buena Park, and the LAX area.

The announcement that the retailer has several more sites under consideration for development in the market.

The start of a major multi-million-dollar broadcast and print advertising campaign in the market this week, which includes a 26-week television buy, a 26-week radio buy, full-run L. A. Times advertising, and a geographically targeted Internet advertising program.

"What better place than Los Angeles to grow if you are the nation’s leading specialty retailer of used cars?" said Austin Ligon, president and chief executive officer of CarMax, Inc. "California, and in particular, Los Angeles, is the world’s greatest auto market. Our new multi-million-dollar advertising campaign will introduce car shoppers to the CarMax way of car shopping – low, no-haggle prices on every part of the sale; a huge selection – nearly every make and model; guaranteed quality; and a fun car buying experience. Our new stores will give car shoppers more locations and more inventory to choose from – with more than 1,200 cars that can be transferred among the five stores now in the market."

About CarMax

CarMax, a FORTUNE 500 company and one of the FORTUNE 2005 "100 Best Companies to Work For," is the nation’s leading specialty retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 60 used car superstores in 27 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 February 28, 2005, the company retailed 253,168 used cars, which is 92 percent of the total 273,804 vehicles the company retailed during that period. For more information, access the CarMax website at www.carmax.com.

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

L.A. Area: Carin Galletta or Candis Melamed, (323) 931-7600
                   carin@inkfoundry.com or candis@inkfoundry.com

Investor Contacts:
CARMAX: Dandy Barrett, Assistant Vice President, Investor Relations, (804) 935-4591 
Celeste Gunter, Manager, Investor Relations, (804) 935-4597