Circuit City to Extend E-Commerce Product Pickup Service to Amazon.com Customers in Time for the Holidays.

Business Editors

RICHMOND, Va.--(BUSINESS WIRE)--Aug. 20, 2001

Circuit City Stores today announced a multi-year agreement with Amazon.com that will enable Circuit City to offer its products and services, including the popular in-store product pickup option now available on its own Web site, to Amazon.com's millions of customers.

By the holidays, Amazon.com's customers will, for the first time, be able to order online and immediately pick up several thousand consumer electronics products at a convenient brick-and-mortar location. With more than 600 stores nationwide, Circuit City operates more superstores than any other consumer electronics specialty retailer in the U.S. Amazon.com's customers will be able to determine if product is available at a local Circuit City store and select products for immediate purchase and pickup. By early next year, Circuit City will add the option of direct shipment for selected Circuit City products. All product fulfilled by Circuit City may be returned to any Circuit City store.

Circuit City will recognize all revenue from orders fulfilled by Circuit City. For its presentation and order handling services, Circuit City will pay Amazon.com a percentage of the revenue from each Circuit City order.

"Circuit City customers find the store pickup option especially advantageous, with almost half our online customers choosing to purchase this way," said W. Alan McCollough, president and chief executive officer of Circuit City Stores, Inc. "For more than two years, our customers have been able to use our own Web site, CircuitCity.com, to check product availability, purchase products and pick them up at their convenience. We are delighted to begin offering this important service through Amazon.com and extend our `We're with You' commitment to Amazon.com's millions of customers.

"We also are excited to join the Circuit City name with that of the leading customer-focused e-tailer," said McCollough. "We believe this new agreement will serve as a revenue generator for both companies."

"We're thrilled to be working with Circuit City to provide our customers with an even greater selection of cool electronics products, as well as the option of in-store pickup," said Jeff Bezos, founder and chief executive officer of Amazon.com. "For electronics shoppers who want their merchandise right away, our new in-store pickup option is a great way for them to get exactly what they want, when they want it."

With 597 Circuit City Superstores and 32 mall-based Circuit City Express stores, Circuit City operates more consumer electronics specialty superstores in more markets than any other retailer. Circuit City's online presence, CircuitCity.com, offers an integrated clicks-and-mortar experience with a comprehensive selection of consumer electronics, personal computers, movies, music and games; extensive product information; and Express Pickup, which allows customers to order online and pick up in store. Headquarters for Circuit City Stores, Inc. (NYSE: CC, KMX) are located in Richmond, Va.; the company includes both the Circuit City and CarMax retail stores.

Circuit City Stores, Inc. Forward-Looking Statement 

This release contains forward-looking statements related to Circuit City Stores, Inc. These statements are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in Circuit City Stores, Inc.'s filings with the Securities and Exchange Commission.

Amazon.com Forward-Looking Statement

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, among others, the rate of growth of the Internet and online commerce, customer spending patterns, the amount that Amazon.com (NASDAQ: AMZN) invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, risks of inventory management, the degree to which the company enters into service relationships and other strategic transactions, fluctuations in the value of securities and non-cash payments Amazon.com receives in connection with such transactions, foreign currency exchange risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, Amazon.com's anticipated losses, significant amount of indebtedness, competition, seasonality, potential fluctuations in operating results, management of potential growth, system interruption, consumer trends, fulfillment center optimization, inventory, limited operating history, fraud and Amazon Payments, new business areas, international expansion, business combinations, strategic alliances and strategic partnerships. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2000, and all subsequent filings, including Quarterly Reports on Form 10-Q.

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