Circuit City Stores, Inc. Amends Shareholder Rights Plan

    RICHMOND, Va., July 10 Circuit City Stores, Inc.
announced today that its board of directors has amended the
Shareholders Rights Plan to revise the beneficial ownership threshold at which
a person or group of persons becomes an "acquiring person" and triggers
certain provisions of the plan.
    As revised, a person or group would become an "acquiring person" if that
person or group acquires or obtains the right to acquire beneficial ownership
of either:

     *  15 percent or more of the outstanding shares of Circuit City group
        stock, or

     *  30 percent or more of the outstanding shares of CarMax group stock and
        15 percent or more of the voting power of the outstanding shares of
        common stock, which includes both the Circuit City group stock and
        CarMax group stock.

    Any person or group who when the amendment was adopted was below the
former threshold, which was 20 percent or more of the voting power of the
outstanding shares of common stock, but who at that time met the new
threshold, will be grandfathered under the former threshold until such time as
the holding drops below the new threshold.
    The amendment also made a number of technical changes relating to the
operation of the plan.

    Circuit City is a leading national retailer of brand-name consumer
electronics, personal computers and entertainment software.  The company's
CarMax subsidiary is the nation's leading specialty retailer of used cars.
With headquarters in Richmond, Va., the company operates 595 Circuit City
Superstores and 32 mall-based Circuit City Express stores, giving it more
locations in more markets than any other consumer electronics specialty
retailer.  CarMax operates 40 retail units in 37 locations, including 33 used-
car superstores.  CarMax operates 21 new-car franchises, most of which are
integrated or co-located with used-car superstores.  For more information,
access the company's Web sites at http://www.CircuitCity.com and
http://www.CarMax.com .