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CarMax Acquires Chrysler-Plymouth-Jeep And Dodge New-Car Franchises

3 May 1999

CarMax(R) Completes Acquisitions of Chrysler-Plymouth-Jeep And Dodge New-Car Franchises

    RICHMOND, Va., May 3 -- The CarMax subsidiary of Circuit City
Stores, Inc. (NYSE: CC; KMX) announced today that it has completed the
acquisition of two new-car franchises, Prince Chrysler Jeep Eagle Company and
LAX Dodge, Inc., located in the Los Angeles market.
    The franchises are in close proximity to one another at the West
Manchester intersection with the 405 Freeway.  CarMax plans to operate the
franchises as LAX Chrysler-Plymouth-Jeep and LAX Dodge beginning later this
week.  LAX Chrysler-Plymouth-Jeep will sell a full-line selection of new
Chrysler and Plymouth cars and minivans as well as Jeeps and Jeep sport
utility vehicles.  LAX Dodge will sell a full line of Dodge cars, trucks and
vans.
    Both stores will ultimately relocate to a new CarMax auto mall on the west
side of the 405 Freeway at La Cienega and Olive.  CarMax is acquiring this
premiere site through a redevelopment agreement with the City of Inglewood and
will construct the new facility over the next couple of years.
    "We are excited to have completed the acquisition of these very attractive
stand-alone franchises and to extend our new-car offer to the people of Los
Angeles.  The redevelopment project will further enhance a great, high-traffic
location, convenient to downtown, the Westside and the South Bay," said W.
Austin Ligon, president of CarMax.  "With the new auto mall facility, we
expect to create one of the premiere auto retailing locations in Los Angeles.
    "Our experience has shown us that when we combine the CarMax consumer
offer with DaimlerChrysler vehicles, it is a winning combination for the
customer, for DaimlerChrysler and for CarMax shareholders," said Ligon.
    CarMax operates two Chrysler-Plymouth-Jeep franchises in the Atlanta, Ga.,
market.  In 1998, the CarMax store in Norcross, Ga., was the leading Chrysler-
Plymouth dealer in the U.S.  Both CarMax Atlanta-market Chrysler franchises
carry the Five Star rating, DaimlerChrysler Corporation's highest award for
customer service excellence, and both received DaimlerChrysler's Pacesetter
Award for producing retail sales that rank them among the nation's top 100
Five Star dealers.  CarMax also operates a Chrysler-Plymouth-Jeep franchise in
the Orlando, Fla., market and a Jeep franchise at the CarMax Auto Mall, a
nine-franchise auto mall and used-car superstore in Kenosha, Wis., halfway
between Chicago and Milwaukee.
    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. With the addition of
the Los Angeles franchises, CarMax will operate 33 locations, including 29
used-car superstores and 19 new-car franchises.  Circuit City Stores, Inc. is
a leading national retailer of consumer electronics, major appliances,
personal computers and entertainment software.  Additional CarMax information
is available at http://www.carmax.com(SM).  Additional Circuit City information is
available at http://www.circuitcity.com(SM).
    This release contains forward-looking statements, which are subject to
risks and uncertainties, including, but not limited to, risks associated with
the development of a new retail concept.  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.