Best Buy Pioneers Seamless Shopping With BestBuy.com; Launch of Internet Business Combines the Best of Online Shopping With Existing Stores.

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MINNEAPOLIS--(BUSINESS WIRE)--June 12, 2000

Best Buy Co., Inc., (NSYE: BBY) today launched its new Internet business to the general public at BestBuy.com, Inc. (www.BestBuy.com). BestBuy.com, a wholly owned subsidiary, plans to make shopping better than ever by combining the convenience and fun of online shopping with the service and support of Best Buy's more than 350 retail stores. Best Buy is the nation's retail leader of consumer electronics, technology and entertainment and BestBuy.com integrates existing retail stores with catalog and online product offerings for its consumers nationwide.

"Best Buy seeks to pioneer the clicks-and-mortar revolution by creating a better shopping experience for our customers at every point we interact with them," said BestBuy.com President John Walden. "We are combining the best of traditional retail with the best of online to offer our customers an unprecedented opportunity to interact with one of the nation's most recognized brands."

BestBuy.com will give customers access to all three of Best Buy's shopping channels, in-store, online and catalog. For example, consumers can research and purchase product on the Internet, in the store, or via the catalog and call center. They can obtain product through direct home delivery, store pick-up or traditional retail purchases from Best Buy's retail stores, and return or exchange product via mail or store.

BestBuy.com's user-friendly Internet channel is designed to make shopping easier and fun. Shopping tools include a Compare feature, a Shopping Assistant feature, a Think About(TM) folder and multiple angle product views. Compare allows a customer to select items to review a side- by-side comparison of the products' features. Shopping Assistant asks pertinent questions about needs and usage of a desired product and helps find products that suit customers' specifications.

The Think About(TM) folder allows customers to set aside products of interest for further research, comparisons or later purchase. Additionally, the multiple angle product views enable consumers to view high quality digital images of products from all angles. For example, a digital camcorder can be viewed from close-up, front, back, and top angles, as well as the remote control.

BestBuy.com initially offers consumer electronic products including audio, video, portable electronics, photo and digital imaging, along with music CDs and DVD movies. The product offerings will continually evolve to feature enhanced music and movie selections and content, as well as computers, software and the balance of Best Buy's product assortment. In addition, BestBuy.com will continue to add more comprehensive product information and product reviews, additional features and functionality.

"BestBuy.com is focused on building consumer relationships, and its success will be measured by more than clicks of the `Buy' button," Walden added. "We are dedicated to educating consumers, delivering great after-purchase service, and making it easy to shop in whatever way is most convenient - online, through mail order, or in traditional stores."

The groundbreaking "Intelligent Sourcing" inventory management system makes fulfillment of e-commerce, catalog sales and traditional in-store shopping virtually interchangeable. New Web stations in all Best Buy stores allow customers to research product information, purchase out of stock items, or order products not available in a particular store for home delivery or in-store pick up.

BestBuy.com has created alliances with a number of online, best-of-class companies that will provide customer-friendly content to complement Best Buy's internal efforts. Earlier this year, the Company announced a strategic alliance with Microsoft Corp., equity investments in etown.com and Simplexity.com, as well other alliances with Liquid Audio, Supertracks, Rollingstone.com and Everypath.

Minneapolis-based Best Buy Co., Inc. (NYSE: BBY) is the nation's number one specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Company reaches consumers nationwide through its more than 350 retail stores located in 40 states and online at www.BestBuy.com.

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 the Private Securities Litigation Reform Act of 1995. 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 identified 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.