Best Buy Outlines Plans For Fiscal 2008 New Store Expansion.

Fiscal 2008 Growth Plan Includes Approximately 35 New International Stores and 95 New U.S. Stores

MINNEAPOLIS -- As part of its ongoing strategy of listening to customers in order to provide a differentiated experience and serve unmet needs, Best Buy Co., Inc. (NYSE:BBY) said that it plans to open approximately 130 new stores in the United States, Canada and China during its 2008 fiscal year, which begins on March 4, 2007. The company said it expects its total global retail square footage to grow 10 percent to approximately 46 million square feet by the end of fiscal 2008, as compared with the expected square footage at the end of fiscal 2007.

"Our focus is on reaching new customers in new markets or new ways," said Brad Anderson, Best Buy's vice chairman and chief executive officer. "We are very encouraged by the number of growth opportunities in front of us. Our core U.S. Best Buy business is growing as our employees continue to find ways to contribute their unique ideas and experiences in service of our customers. In fact, we believe that employee ingenuity, when coupled with customer insights, provides a platform for retail success around the globe. We know that the better we listen to our customers, the better we are able to provide the experiences that reflect their particular lifestyles and priorities--regardless of whether they interact with us in a store, in their home or business, online or on the phone."

Company Plans 14% International Retail Square Footage Expansion

Best Buy's fiscal 2008 plan includes the addition of approximately 35 new stores internationally. The company anticipates opening 12 to 14 stores in Canada--expected to be equally split between its Best Buy and Future Shop brands. Canadian retail square footage is projected to grow 8 percent in fiscal 2008 to approximately 4.0 million square feet, up from approximately 3.7 million square feet today. The company also plans to relocate two Future Shop stores in the fiscal year, including a move to the Yonge and Dundas Street location in Toronto.

In China, the company plans to add 20 to 23 new Five Star stores during fiscal 2008. Additionally, the company expects to open two to three additional Best Buy locations in China in the next 12 to 18 months. The company estimates that its China retail square footage will exceed 5.0 million square feet by the end of fiscal 2008, compared with approximately 4.6 million square feet projected for the end of fiscal 2007.

"The Canadian team is doing an outstanding job, and we expect another year of solid revenue growth," said Bob Willett, CEO of Best Buy International. "It is indeed a very exciting time; we have learned a tremendous amount about running two brands in Canada, and that experience is supporting our work in China. We will continue to learn how to serve the Chinese consumer and adapt our operating model going forward."

The company also stated that starting in March 2007, Geek Squad will work with Carphone Warehouse (CPW) to provide home computing support services in the United Kingdom. CPW, Europe's leading mobile communications retailer, also is working with Best Buy to improve the U.S. mobile phone shopping experience through the Best Buy Mobile concept. Best Buy currently operates five stand-alone Best Buy Mobile stores and four Best Buy Mobile store-within-a-store experiences in the New York City area.

Company Expects to Operate More Than 900 U.S. Best Buy Stores by Next Year

Brian Dunn, president and chief operating officer, said, "We are intensely focused on driving the earnings growth of Best Buy. We are allocating our capital to extend our growth runway, build business capabilities and enter new markets and customer segments. We continue to find prime new store locations, allowing us to attract new customers, to serve our current customers better and to grow our market share profitably."

In fiscal 2008, the company expects to open approximately 90 new U.S. Best Buy stores. Best Buy estimates that approximately 60 of these stores will be in the 30,000-square-foot format, 20 in the 45,000-square-foot format and 10 in the 20,000-square-foot format. The majority of new stores are projected to be opened in markets where Best Buy has an established presence. The company also expects to relocate eight U.S. Best Buy stores during fiscal 2008. The majority of the new U.S. stores are scheduled to open periodically throughout the company's first three fiscal quarters so that the new stores are open in time for the holiday shopping season.

The company also commented that it plans to open up to five additional Pacific Sales Kitchen and Bath Centers in southern California in the coming fiscal year. The company currently operates 14 Pacific Sales stores.

In total, Best Buy estimates that its U.S. retail square footage will increase to approximately 37 million square feet by the end of fiscal 2008, compared with approximately 34 million square feet projected for the end of fiscal 2007.

Best Buy's New Stores Expected to Add 12,000 Retail Jobs

Best Buy's fiscal 2008 store expansion plans are expected to bring more than 12,000 new retail management, sales and services jobs to communities in its markets. By the end of fiscal 2008, the company expects to employ more than 140,000 people.

Dunn said, "There is nothing more powerful than the energized interactions between our employees and our customers - they're our growth driver. Best Buy's employees--across all of our brands and channels--differentiate us from the competition. By creating an energetic, open and fun work environment, we get the creativity and ideas that we need to drive our growth. I believe that every single one of our employees has the ability to contribute a unique strength or perspective that can help solve our customers' needs."

Best Buy's financial results, store counts and other news releases can be found on the Internet at the company's Web site, www.BestBuy.com by clicking on the "For Our Investors" link, or accessed via Business Wire's Web site at www.businesswire.com.

On April 4, 2007, the company expects to report fourth-quarter results, along with more details about its expectations for fiscal 2008.

Forward-Looking and Cautionary Statements:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management's current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as "anticipate," "believe," "estimate," "expect," "intend," "project," "plan," "outlook," and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to materially differ from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions, acquisitions and development of new businesses, divestitures, product availability, sales volumes, pricing actions and promotional activities of our competitors, profit margins, weather, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate locations, our ability to react to a disaster recovery situation, and the impact of labor markets and new product introductions on our overall profitability. A further list and description of these risks, uncertainties and other matters can be found in the company's annual report and other reports filed from time to time with the Securities and Exchange Commission, including, but not limited to, Best Buy's Annual Report on Form 10-K filed with the SEC on May 10, 2006. Best Buy cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statements that it may make.

About Best Buy Co., Inc.

Best Buy Co., Inc. (NYSE:BBY) operates a global portfolio of brands with a commitment to growth and innovation. Our employees strive to provide customers around the world with superior experiences by responding to their unique needs and aspirations. We sell consumer electronics, home-office products, entertainment software, appliances and related services through more than 1,150 retail stores across the United States, throughout Canada and in China. Our multi-channel operations include: Best Buy (BestBuy.com, BestBuy.ca and BestBuy.com.cn), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com and GeekSquad.ca), Pacific Sales Kitchen and Bath Centers (PacificSales.com), Magnolia Audio Video (Magnoliaav.com) and Jiangsu Five Star Appliance Co. (Five-Star.cn). Best Buy supports the communities in which its employees work and live through volunteerism and grants that benefit children and education.