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CarMax and Nissan Sign Business Agreement

6 May 1998

CarMax and Nissan Sign Business Agreement And Announce Plans for Carson, Calif., Location

  CarMax Superstore Will Combine Used-Vehicle Sales with New Nissan Vehicles

    RICHMOND, Va., May 6 -- The CarMax subsidiary of Circuit City
Stores, Inc. (NYSE: CC, KMX) and Nissan Motor Corporation USA (NMC) announced
today the signing of a framework agreement that will allow CarMax to own and
operate Nissan franchises throughout the U.S., including a new franchise point
at the Carson, Calif., CarMax superstore scheduled to open in the spring of
1999.
    The agreement provides that CarMax can acquire existing Nissan franchises
and obtain new franchise points and that Nissan franchises may be integrated
into CarMax superstores or operated as stand-alone locations.  Specifics of
locations for other Nissan dealerships to be owned and operated by CarMax will
be announced as they develop.
    "This business agreement gives us the opportunity to further expand
CarMax's new-car retailing business with one of the world's leading
manufacturers of new vehicles," said W. Austin Ligon, president of CarMax. "We
believe that new Nissan vehicles will be highly attractive to CarMax customers
and that Nissan buyers will find our consumer-friendly sales process extremely
appealing.  As a result, we believe that CarMax can generate significant sales
volume and customer satisfaction for Nissan."
    "Nissan is pleased to have entered into a formal business agreement with
CarMax which outlines its willingness to agree to Nissan's ownership policies.
This gives us a greater opportunity to expand our customer base and is a win-
win for Nissan and our customers," said Mike Seergy, vice president, general
manager for Nissan Division.  "In addition, by appointing CarMax with the
Carson dealer point, we hope to strengthen our presence and improve our
consumer sales and service convenience."
    "The Carson location is a key element in CarMax's plan to penetrate the
Los Angeles market with superstores, starting in 1999," Ligon said.  "We
expect the combination of Nissan and CarMax will provide exceptional results
for both companies."
    CarMax plans to operate integrated Nissan and CarMax superstore locations
in a format similar to the two Chrysler dealerships it now operates in
Norcross and Stockbridge, Ga.  Both of these locations received Chrysler's
Five Star rating, which is that company's highest award for customer service
excellence in sales and mechanical service.  The Norcross location received
Chrysler's top award for achieving the highest retail sales volume within
Chrysler's Pacesetters Club, composed of the 100 highest volume dealers who
qualify for the Five Star rating.
    The agreement between CarMax and Nissan establishes the basic business
agreement between the two companies so that Nissan franchises can be acquired
and operated by CarMax on a consistent and mutually agreeable basis.  The
specific franchise agreement for Carson grants CarMax a single location in the
Los Angeles market.
    Nissan Motor Corporation USA (NMC), based in Carson, Calif., is the sales
and marketing subsidiary of Nissan North America, Inc.  In North America,
Nissan's operations include styling, engineering, manufacturing, sales,
consumer and corporate finance and industrial and textile equipment.  Nissan
in North America employs more than 22,000 people in the United States, Canada
and Mexico, and generates nearly 75,000 jobs through its more than 1,500
Nissan and Infiniti dealerships across the continent.
    CarMax operates 19 auto superstores, including two with new-car
franchises.  The CarMax superstores offer superior selection, accompanied by a
strong commitment to customer service.  Trained sales consultants help
customers find vehicles that meet their needs and assist them through the
conclusion of the transaction.  CarMax features low, no-haggle pricing and on-
site vehicle financing.  All CarMax superstores include large showrooms,
automotive service and reconditioning centers, supervised "For Kids Only(R)"
play areas and training rooms.
    This release contains forward-looking statements, which are subject to
risks and uncertainties, including, but not limited to, risks associated with
the development of new business concepts.  Additional discussion of factors
that could cause actual results to differ materially from management's
projections, forecasts, estimates and expectations is contained in Circuit
City's SEC filings.

SOURCE  Circuit City Stores, Inc.