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Circuit City Stores, Inc. Estimates 52 Percent EPS Increase

7 September 1999

Circuit City Stores, Inc. Estimates 52 Percent EPS Increase for Circuit City Business, Reports Record August and Second Quarter Sales For The Circuit City and CarMax Groups

    RICHMOND, Va., Sept. 7 -- Circuit City Stores, Inc. today
announced that it expects a second quarter earnings per share increase of
approximately 52 percent for the Circuit City business and reported record
August 1999 and second quarter sales for the company, the Circuit City Group
and the CarMax Group .

    Circuit City Stores, Inc.
    For the month, total sales for Circuit City Stores, Inc. rose 14 percent
to $1.05 billion from $916.4 million in August 1998.  For the second quarter
ended August 31, 1999, total sales for Circuit City Stores, Inc. rose 17
percent to $2.95 billion from $2.52 billion in the second quarter of last
year.

    Circuit City Group Sales and Earnings Expectations
    "We expect that the second quarter operating trends will produce earnings
per share of approximately 35 cents for the Circuit City business, a 52
percent increase from last year's second quarter.  This expectation exceeds by
5 cents the average analyst estimate of 30 cents per share," said Richard L.
Sharp, Circuit City's chairman and chief executive officer.  "For the Circuit
City Group, which includes the Circuit City business and the Group's retained
interest in the CarMax Group, we anticipate earnings per share of
approximately 36 cents, which would represent a 64 percent increase from last
year's second quarter earnings per share from continuing operations of 22
cents."  Circuit City expects to release second quarter earnings on September
16.
    For the month of August, total sales for the Circuit City Group were
$859.6 million, which represents a 10 percent increase from August 1998 sales
of $781.6 million and a 6 percent increase in comparable store sales.  For the
quarter ended August 31, 1999, total sales for the Circuit City Group were
$2.42 billion, which represents a 14 percent increase from last year's second
quarter sales of $2.12 billion and a 10 percent increase in comparable store
sales.
    "Sales for the month and the quarter followed the trends we have seen for
the past year with strong sales of personal computers and robust consumer
demand for highly featured products and new consumer electronics
technologies," said Sharp.   "August sales were consistent with our
performance throughout the year and reflect one less Saturday in August of
this year compared with August of last year."
    During August, Circuit City opened its first Superstore in Panama City,
Fla.; its seventh Superstore in Indianapolis, Ind.; and its 27th Superstore in
the New York metropolitan market.

    CarMax Group Sales and Earnings Expectations
    "We are pleased to announce that we expect the CarMax Group to again
report a quarterly profit," Sharp said.  "We expect earnings of approximately
3 cents per CarMax Group share compared with a loss of 3 cents per share in
last year's second quarter."
    For the month of August, total sales for the CarMax Group were $188.3
million, which represents a 40 percent increase from August 1998 sales of
$134.8 million and a 2 percent decrease in comparable store sales.  For the
quarter ended August 31, 1999, total sales for the CarMax Group were $535.7
million, which represents a 34 percent increase from last year's second
quarter sales of $400.0 million and a 6 percent decrease in comparable store
sales.
    "A better used-car sales pace and ongoing strength in new-car sales
produced CarMax's improved sales rate," said Sharp. "Like Circuit City's,
CarMax's sales include one less Saturday this year compared with last year."
    On August 3, CarMax grand-opened a used-car superstore in Nashville,
Tenn., and on September 1, CarMax grand-opened in Duarte, Calif.  These
openings give CarMax a total of 32 used-car superstores.

    Circuit City is a leading national retailer of brand-name consumer
electronics, personal computers, major appliances and entertainment software.
CarMax is the nation's leading specialty retailer of used cars and a rapidly
growing new-car retailer.  With headquarters in Richmond, Va., Circuit City
Stores, Inc. currently operates 551 Circuit City Superstores, two consumer
electronics-only stores, 46 mall-based Circuit City Express stores and 37
CarMax locations, including 32 used-car superstores and 21 new-car franchises.

    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.