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Lehman Brothers 11th Annual Retail and Restaurant ConferenceApril 29, 2008

Katharine W. KennyAssistant Vice President, Investor Relations

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Forward-Looking Statements

This presentation contains forward-looking statements, which are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management’s projections and estimates is contained in the CarMax, Inc. SEC filings. The Company disclaims any intent or obligation to update its forward-looking statements.

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The CarMax Story

• Largest used car retailer in the U.S.

• Unmatched consumer offer Competitively low, no-

haggle prices Huge selection Guaranteed quality Customer-friendly sales

processes

• Unique culture• Diversified profit base

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Largest Used Car Retailer in the U.S.

CarMax currently has:

• 93 used car superstores

• 42 markets

In FYE 02/29/08 CarMax sold:

• 377,244 used vehicles

• 222,406 wholesale vehicles

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Unique Culture

• Ethical, experienced management and well trained, engaged associates

Fortune’s “100 Best Companies to Work For” 4 consecutive years

2008 International Torch Award for Marketplace Excellence by the Council of Better Business Bureaus

2008 Training Magazine “Top 125”

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Low Associate Turnover

• Less than 10% for managers and senior managers

• Less than 20% for President’s Club sales associates

Diversified Profit Base (FYE 2/29/08)

Percentages represent breakdown of gross profit dollars, including CarMax Auto Finance income

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Strong Results

30

65

100

40

90

140

190

240

3,000

6,000

9,000

$ in millions $ in millionsSuperstores Revenues Net Earnings*

5 yr CAGR = 17% 5 yr CAGR = 15% 5 yr CAGR = 15%

* Prior years restated for SFAS 123R

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89

$3,970

$8,199

$90

$182

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Growth Opportunity

15% planned annual increase in store base

4% to 8% expected long-term used unit comp growth

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Growth Opportunity

Present in markets representing ≈ 43% of U.S. population

5 year average used unit comps: CarMax +6% Public new car dealers (avg) (2)%

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Growth Opportunity

carmax.com (provide more sales leads and speed the sales process)

Future margin improvement (impacted by cost reduction initiatives and SG&A leverage)

New formats, including micro-stores and car-buying centers

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Finance Originations

Purchasing/

Inventory

Management

Reconditioning

Consumer

Offer

Competitive AdvantagesWell-tested Proprietary Processes & Systems

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Competitive Advantages

Sell more used cars per store CarMax 417/month Public new car dealers (avg) 50/month

25,000+ used vehicles in nationwide inventory Customer transfers represent ≈ 25% of sales

carmax.com and marketing efficiencies 70% of customers visit website first

Scale Efficiencies

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Competitive Advantagescarmax.com (original search capability)

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Competitive Advantagescarmax.com (with new search capability)

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Competitive Advantages

CarMax Auto Finance

Reduces reliance on 3rd party lenders

Provides opportunity to innovate and drive incremental sales

Generates attractive economic returns

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Fiscal 2008 Financial Results

Fiscal year negatively impacted by weak economy and credit market turmoil

3% used unit comps reflect strength of CarMax model

Lower earnings primarily a result of CAF higher funding costs and retained interest adjustments

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Why CarMax?

A unique and sustainable retail

growth story with

defensible competitive advantages

Used car focus, with diversified profit base

Unique consumer offer

Process and systems driven

Organic growth opportunity

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