BIG THINGS ARE HAPPENING AT THE NEW RADIO SHACK.

NEW YORK--(BUSINESS WIRE)--Aug. 8, 1995--Radio Shack has launched a major re-imaging campaign to contemporize and further differentiate the nationwide chain of consumer electronics retail stores from other electronics retailers. The campaign was launched at a briefing for members of the media and financial analysts attended by John V. Roach, chairman and CEO of Tandy Corporation, and Leonard Roberts, president of Radio Shack.

At the briefing, Roberts outlined a "thoroughly planned, well-executed strategy that will take Radio Shack into the 21st century." The strategy involves new directions in marketing, merchandising and customer service as well as important new strategic alliances with other industry leaders in the computer, telecommunications and home security industries.

Roberts characterized the changes as a major break with tradition. "They include a dramatic and comprehensive program to revitalize store signage, in-store environment and layout and product packaging," he said.

"The foundation for the re-imaging campaign is a bold, assertive and confident new Radio Shack logo that links together the two words: RadioShack." Roberts also introduced a new "circle R" symbol "designed to convey quality, value and product excellence."

The new logo will first appear in the 1996 RadioShack(SM) catalog available in mid-August. "The new logo will be phased into store signage over the next three to four years," Roberts said, "while updated packaging designs will appear next summer."

Designs for the new logo, store signage, in-store environment and product packaging were created by San Francisco-based Landor Associates, an international identity consultant and design firm.

RadioShack Unlimited --------------------

Roberts said, "RadioShack will follow the success of its repair and gift programs with another new customer service, RadioShack Unlimited(SM)." This innovative special order program provides consumers convenient access to over 100,000 unique and hard-to-find personal electronics products and accessories, replacement parts and components from many name-brand manufacturers -- products that can be delivered directly to the customer within a few days. RadioShack Unlimited features the most comprehensive consumer electronics and personal computer reference guide available contained in a specially designed kiosk prominently displayed in each RadioShack(SM) store and participating dealer.

Strategic Alliances -------------------

Roberts announces new strategic alliances with some of the most powerful forces and brands in consumer electronics.

o RadioShack and IBM -- This fall, IBM's award-winning line of Aptiva(TM) desktop and ThinkPad(TM) notebook computers will be the featured PC offering at RadioShack. RadioShack will feature the nation's broadest array of Aptiva and ThinkPad models and IBM software titles available. IBM and RadioShack will also participate in an unprecedented joint national print and broadcast advertising campaign as well as an extensive direct mail effort. In addition, The Repair Shop at RadioShack(SM) will provide in-warranty and out-of-warranty service on all Aptiva and other IBM(R) computer products. This includes models sold by both RadioShack and other retailers.

o RadioShack and GTE -- In partnership with the Intercarrier Service Bureau of GTE Telecommunications Services, more than 4,500 company- owned RadioShack stores will provide cellular phone activation service for any city or town in the United States. Customers may buy a RadioShack cellular phone and have it activated for another market or can take their phone to any RadioShack for activation when moving to another market. The RadioShack cellular phone can be delivered as a gift for a friend or loved one in another city already programmed for the recipient's home market.

o RadioShack and ADT Security Systems -- The sales and marketing alliance with ADT Security Systems is one of the first of its kind for ADT. RadioShack customers will be able to sign up for installation of ADT's popular Safewatch home security systems and services at any of the more than 6,500 RadioShack stores and participating dealers nationwide. ADT will provide professional 24-hour monitoring services through its existing nationwide network of customer monitoring centers. Local customer service will also be readily available. RadioShack and ADT plan to test market the program prior to a national roll-out targeted for 1996.

o RadioShack and Orca Monitoring Systems -- For customers who prefer to install their own home alarm systems, RadioShack will offer two new, affordable wireless home security systems. Optional monitoring services will be provided by Orca Monitoring Services at a new, state-of-the-art central monitoring station.

"These new alliances capitalize on recognized brand leadership," said Roberts. "Coupled with RadioShack's unmatched distribution strength and marketing leverage, they form a powerful retail service concept that will extend our promise of quality, value and commitment to an unprecedented level in RadioShack's 75-year history."

"RadioShack's announcements today, combined with its growth in sales and profits, not only define a 'new RadioShack' but increase its significance to the Tandy growth scenario," said Roach.

Repositioning -------------

Roberts reviewed the repositioning campaign launched in 1994. "A year ago we announced a major new campaign to reposition RadioShack towards it strength," he said. "We demystified technology for all Americans, at the same time repositioning RadioShack as a service-oriented retailer with 'smart answers' for millions of people." Roberts cited an aggressive advertising campaign with its central theme, "You've got questions. We've got answers," as a major element of RadioShack's repositioning.

Recent Initiatives ------------------

Roberts described several new marketing and merchandising initiatives RadioShack has implemented over the past 12 months to further enhance the company's position as a New Retail Service Concept:

o RadioShack Gift Express -- the first nationwide electronics gift

distribution network that wraps the gift in an attractive box,

encloses a personalized card and ships it anywhere in the United

States.

o The Repair Shop st RadioShack -- an out-of-warranty program to

repair most major brands of consumer electronics and personal

computers.

o United Against Crime -- an alliance with the National Crime

Prevention Council and the National Sheriff's Association to provide

free information on crime prevention to consumers.

o A store expansion program which could add as many as 500 new

RadioShack stores over the next five years.

o An in-warranty repair program for Nokia cellular telephones and now,

IBM computers.

o Corporate sponsorship of the Rock and Roll Hall of Fame and Museum,

scheduled to open Labor Day weekend in Cleveland, Ohio.

o A toll-free number -- 1-800-The-Shack -- for direct customer access

to RadioShack gift programs and assistance in finding the nearest

RadioShack store.

"From new services and new, powerful strategic alliances, to new store signage and packaging design, to new logos, new advertising and new marketing initiatives, we are truly reshaping our image and our opportunities as a company," Roberts concluded.

RadioShack, with annual revenues of $3 billion, is the largest division of Fort Worth-based Tandy Corporation. The chain is America's ultimate electronics store for audio, video, personal computer, home security, telephone, personal electronic products and components with more than 6,500 company-owned retail stores and participating dealers nationwide.

CONTACT: Tony Magoulas, Radio Shack, 817/878-4852.