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CarMax Announces New Mitsubishi Franchises

3 November 1998

CarMax Announces New Mitsubishi Franchises For the Washington, D.C./Baltimore, Md., Market

    RICHMOND, Va., Nov. 3 -- The CarMax subsidiary of Circuit
City Stores, Inc. (NYSE: CC, KMX) announced today that Mitsubishi Motor Sales
of America, Inc. has granted CarMax two new-car franchise points to be
operated from CarMax's Laurel, Md., and Dulles, Va., superstores in the
Washington, D.C./Baltimore, Md., market.
    CarMax's Laurel superstore, located on U.S. Route 1 just north of Laurel,
opened in August 1997 and is today the nation's top-performing used-car retail
store.  CarMax expects to begin selling new Mitsubishi cars and sport utility
vehicles at the Laurel store within the next month.  The Dulles superstore, on
state Route 28 midway between the Dulles Toll Road and Highway 7, opened in
late September 1998 and will add new Mitsubishi vehicles to its selection
within the next several months.
    "Whether we are selling new or used vehicles, CarMax offers consumers a
fresh and straightforward approach to car buying," said W. Austin Ligon,
president of CarMax.  "These franchise grants for the Washington/Baltimore
market give us the opportunity to combine our unique offer with the quality
vehicles manufactured by Mitsubishi.  It is a winning combination for the
customer, for Mitsubishi and for CarMax."
    CarMax began development of the used-car superstore concept in 1991 and
has been revolutionizing the way consumers think about automobile purchases
since opening its first store in Richmond, Va., in 1993.  CarMax locations
offer hundreds of top-quality used cars and trucks; everyday low prices marked
clearly on every car; quality guarantees; customer-friendly service; and
convenient, dependable repair service.
    CarMax plans to operate integrated Mitsubishi 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.
    Mitsubishi Motor Sales of America, Inc. was established in 1982 by
Mitsubishi Motors Corporation, Tokyo, and markets a full line of vehicles,
including coupes, convertibles, sedans and sport utility vehicles.
    CarMax operates 24 superstores.  The company expects to operate
approximately 27 superstores by the end of its current fiscal year and to open
another 10 stores next fiscal year.  Circuit City Stores, Inc. is the nation's
largest retailer of brand-name consumer electronics and major appliances and a
leading retailer of personal computers and music software.  Additional CarMax
information is available at http://www.carmax.com.  Additional Circuit City
information is available at http://www.circuitcity.com.
    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 and risks associated with year 2000
issues.  Additional discussion of factors that could cause actual results to
differ materially from management's projections, forecasts, estimates and
expectations is contained in the company's SEC filings.