well then create a label yourself. It's not very hard, just some legal stuff to take care.
once again, it's all about marketing yourselves as much as you can, specially on the web.
one thing to REALLY Think about:
FREE music
seriously.... selling a CD for 12 bucks as a starting band might me too much for someone right now. give the music for free and make your money on the road. Obviously offer the CD at a higher quality for some cash (I'd go lower than 12.. how many songs are there on the CD? I'd charge 1 euro a song so 10 songs = 10 euros, if you have more than 10 songs make em so that the whole CD is NOT more than 10 euros. But you can offer half of the songs on the CD for FREE through download only and in a lowerquality (myspace quality for example). Believe me if people like the music they downloaded for free and they will pay to hear the rest of the album and specially at a higher quality.
Have cool little merchandise to sell at the gigs such as t-shirts and stuff.
another cool thing to do is include an Bonus download for people that buy the album, that bonus could have 5 extra songs that are not on the album, or even better 3 extra original songs NOT on the album AND 3 or 4 COOL ASS covers by your band. I doubt you'll get into trouble with said bands because you're not cashing in on them, you're giving them for free (of course as a free bonus for the people that buy the CD). You could make this bonus studio quality, or as a live recording (I'd do the originals as a recording, and the covers live, that way people can familiarize with how you play live and know what to expect when they go to a live show)
there are TONS of great marketing strategies man, honestly you don't need the record deal as much as you thing, or anybody things.
Of course the DIY route has a bit of a "limit" but when you hit that limit recording companies will be fighting to sign you, and you'll make your demands. What else could you loose at that point? loosing the signing opportunity? fuck them, you keem on the DIY route then.