CarMax Raising Earnings Expectations

    RICHMOND, Va.--Aug. 1, 2001--CarMax Auto Superstores, Inc. today raised earnings expectations for the second quarter ending August 31, 2001, to a range of 24 cents to 25 cents per CarMax Group share compared with the prior year's second quarter earnings of 15 cents per share.
    "The strong sales growth that we experienced over the last two quarters has continued through the first two months of our current quarter," said W. Austin Ligon, president of CarMax. "We have added no new stores for more than a year, so all of this growth comes from comparable store sales and provides significant expense leverage. These above-plan sales, especially of used cars, which carry higher gross margins than new cars, lead to the higher-than-anticipated second quarter earnings expectation."
    Second quarter earnings in the range of 24 cents to 25 cents per CarMax Group share will bring first half expectations to a range of 49 cents to 50 cents per CarMax Group share compared with last year's first half earnings of 28 cents per share.
    CarMax is the nation's leading specialty retailer of used cars. With headquarters in Richmond, Va., the company currently operates 40 retail units in 37 locations, including 33 used-car superstores. CarMax also operates 20 new-car franchises, most of which are integrated or co-located with its used-car superstores. For more information, access the company's Web site at CarMax.com .
    CarMax is a subsidiary of Circuit City Stores, Inc. Circuit City Stores, Inc. has two series of common stock, one of which is the CarMax Group stock, which tracks the performance of the CarMax operations, and the other of which is the Circuit City Group stock, which tracks the performance of the Circuit City business and the retained interest in the CarMax Group. A portion of the earnings of the CarMax business is attributed to the CarMax Group stock; the balance is attributed to the Circuit City Group stock.

    This release 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, forecasts, estimates and expectations is contained in the Circuit City Stores, Inc. SEC filings.