RICHMOND, Va. (November 7, 2005)—In the wake of recent hurricanes and flooding, CarMax, Inc., (NYSE: KMX), the nation’s largest retailer of used cars, is advising consumers on how to avoid purchasing flood-damaged vehicles.

"Consumers should be aware that some businesses and individuals may try and sell salvaged and flood-damaged cars without revealing the vehicle’s history," said David Claeys, purchasing manager for CarMax in Richmond, Virginia. "Flood-damaged cars that are not structurally or mechanically sound could be repaired, re-titled, and sold to unsuspecting buyers."

CarMax’s car-buying experts offer these ten tips for identifying a vehicle with possible flood damage:
-Check for a moldy smell inside the car.
-Check for rust under the brake or gas pedals.
-Look for dirt or rust under the dashboard and floormats.
-Look for corrosion, water marks, or a thin brown line on the exterior of the vehicle.
-Ask questions about an older car with a brand new interior or carpeting.
-Check to see if the electrical system works.
-Feel the carpet for dampness.
-Inspect the bolts and screws under the seats for evidence of rust.
-Check the undercarriage for excessive rust.
-Check the VIN number with AutoCheck or Carfax to see whether a flood claim has been filed or a salvage title has been issued on the vehicle.

CarMax’s nationwide team of approximately 700 car-buying experts has appraised more than 5 million cars. These buyers are trained to detect whether a car has flood damage or has been in a major accident. CarMax will not retail any car that has flood or frame damage or an odometer discrepancy.

About CarMax
CarMax, a FORTUNE 500 company, and one of the FORTUNE 2005 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 66 used car superstores in 30 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 August 31, 2005, the company sold 278,178 used cars, which is 93 percent of the total 299,138 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
Trina Lee, Public Relations Manager, Office (804) 747-0422 ext. 4197

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

NOTE TO MEDIA: CarMax’s car buying experts at the carmax store in your market can provide a visually compelling demonstration of how to look out for possible flood damage indicators. Contact us to arrange interviews.