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Sales Ahead of Expectations for the CarMax Group

1 August 2000

Earnings Expectations for the Second Quarter And the Fiscal Year Ahead

    RICHMOND, Va. - CarMax Auto Superstores, Inc. today announced that sales 
have continued to exceed expectations in the second fiscal quarter and that 
management has raised its earnings expectations for the second quarter and the 
fiscal year.

    "Through the first two months of the quarter, we have produced strong
double-digit comparable store sales increases," said W. Austin Ligon,
president of CarMax.  "The growth continues to be driven by both used and new
cars, but used-car sales, which carry higher gross profit margins, are ahead
of plan.  In addition to improved execution of our consumer offer at each
store, we believe the better-than-anticipated results reflect higher customer
flow and sales generated by our enhanced Web site."

    For the second quarter ending August 31, 2000, the company expects to
produce net earnings attributed to the CarMax Group stock in the
range of 11 cents per share to 13 cents per share.  The Circuit City Group
holds a retained interest in the CarMax Group.  CarMax is expected
to contribute 4 cents per share to 5 cents per share to the Circuit City
Group's second quarter net earnings.

    For the second half of the fiscal year, the company expects to produce net
earnings attributed to the CarMax Group stock in the range of 4 cents per
share to 6 cents per share, with the majority of these earnings produced in
the fourth quarter.  For the six-month period, CarMax is expected to
contribute 2 cents per share to the Circuit City Group's net earnings.

    Given the higher earnings expectations for the second quarter and the
second half, the company expects net earnings per share attributed to the
CarMax Group of approximately 28 cents to 32 cents for the fiscal year ending
February 28, 2001, compared with net earnings per share of 1 cent for the
fiscal year ended February 29, 2000.  CarMax is expected to contribute 11
cents per share to 12 cents per share to the Circuit City Group's fiscal 2001
net earnings.

    CarMax is the nation's leading specialty retailer of used cars.  With
headquarters in Richmond, Va., the company currently operates 40 locations.
CarMax operates 21 new-car franchises, most of which are integrated or co-
located with its used-car superstores.  

    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 operations and the retained interest in the CarMax Group.  A portion of
the earnings of the CarMax Group is attributed to the CarMax Group stock; the
balance is attributed to the Circuit City Group stock.