Best Buy Expands in North America; 73 Stores Planned, Including First Store in Hawaii.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 29, 2004

Best Buy Co., Inc. (NYSE:BBY) today said that it plans to open up to 73 new stores in the United States and Canada during its 2005 fiscal year, which begins on Feb. 29.

Included in that total, the Company expects to open approximately 60 domestic Best Buy stores. Approximately one-third of the stores are to be in the 45,000-square-foot format, another third in the 30,000-square-foot format and the remainder in the smaller-market format. Most of the new stores are to be opened in markets where the company already has stores, leveraging the Company's infrastructure and making shopping more convenient for customers. Plans include the Company's first store in Hawaii as well as a new flagship superstore in West Hollywood, Calif.

"We have made significant gains in market share in the current year. Our plans for next year allow us to maintain that momentum and provide even more consumers with the opportunity to enjoy the thousands of possibilities offered by Best Buy stores," said Allen Lenzmeier, president and chief operating officer. "The consumer is at the center of our growth strategy, and we build from there. Our broad assortment of technology and entertainment products, knowledgeable employees, fun in-store experience, and technical support and services bring it all together for our customers and allow us to be their first choice for consumer electronics."

The Company's growth plans extend to its other store brands as well. It anticipates opening 10 Best Buy stores in Canada, predominantly in the 30,000-square-foot format. New markets include Calgary, Alberta; Regina, Saskatchewan; and Langley, British Columbia. The Company also said it expects to open additional Best Buy stores in the Greater Toronto area. Future Shop anticipates opening three new Canadian stores, each approximately 25,000 square feet, as well as relocating four existing stores.

"Earlier this year we reached a milestone by opening our 600th store in the United States, and we are on track to open eight additional Best Buy stores by the end of February," said Lenzmeier. "We have grown because we have never stopped focusing on our customers. We will continue to redefine how consumers interact with Best Buy and provide them with the best possible shopping experience. We are committed to opening great new stores and upgrading our existing stores when appropriate."

By the end of its 2004 fiscal year, the Company expects to operate a total of 630 Best Buy and Magnolia stores in the United States and a total of 127 Future Shop and Best Buy stores in Canada.

The Company estimates that its total domestic retail square footage (excluding distribution centers) will increase from approximately 26.6 million square feet at the end of fiscal 2004 to approximately 28.5 million square feet at the end of fiscal 2005. The Company estimates that its international retail square footage will increase from approximately 2.79 million square feet to approximately 3.08 million square feet during that same period. The majority of the new stores are expected to be opened in the Company's fiscal third quarter, prior to the holiday season.

As part of its growth management plan, Best Buy regularly evaluates the performance of existing stores for expansion, closing or relocation opportunities. Such activities would not be expected to have a material impact on the Company.

Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are based on management's beliefs and assumptions regarding information currently available, and are made pursuant to the "safe harbor" provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company's actual results could differ materially from those expressed in the forward-looking statements. Factors that could cause results to vary include, among others, those expressed in the Company's filings with the Securities and Exchange Commission. The Company has no obligation to publicly update or revise any of the forward-looking statements that may be in this news release.

About Best Buy Co., Inc.

Minneapolis-based Best Buy Co., Inc. (NYSE:BBY) is North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Company's subsidiaries operate retail stores and/or Web sites under the names: Best Buy (BestBuy.com), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com), and Magnolia Audio Video (Magnoliaav.com). The Company's subsidiaries reach consumers through approximately 750 stores in the United States and Canada.