Electronics Boutique Forms Strategic Alliance With MSN.

Business Editors/High-Tech Writers

WEST CHESTER, Pa.--(BUSINESS WIRE)--Oct. 25, 2000

Innovative Program Expands Upon Companies' Successful Relationship;

Offers Consumers Rebates Up to $400 When Signing

Up for MSN Internet Access 

Electronics Boutique Holdings Corp. (NASDAQ: ELBO), a leading global specialty retailer of interactive entertainment products, today announced a strategic alliance with Microsoft Corp. (NASDAQ: MSFT), whereby its retail customers will receive rebates up to $400 after they have purchased eligible merchandise and signed up for MSN Internet Access. The promotion, beginning today, expands upon Electronics Boutique's internet arm EBWorld.com and its successful relationship with MSN as the premier video game and PC retailer on Zone.com.

"We're thrilled to expand upon our mutually beneficial relationship with MSN and are excited to offer our loyal customers an exciting value-added promotion that will let them take full advantage of the Internet," said Jeff Griffiths, Senior Vice President of Merchandising and Distribution for Electronics Boutique. "Today's agreement strengthens our leadership position as the best interactive entertainment destination for consumers throughout this holiday season."

"The MSN Internet Access reach is broadening through this agreement with Electronics Boutique," said Jay Goldstein, director for MSN at Microsoft. "Electronics Boutique has a great audience that will thoroughly complement our current MSN offering."

In addition, Electronics Boutique will support the promotion with in-store counter cards and feature spots within the company's November and December catalogs. Consumers who sign up for 12 months of MSN service will receive $100 in rebates, $200 for 24 months and $400 for 36 months, which will be directly issued by MSN to the subscriber for use in their local Electronics Boutique store.

Electronics Boutique, based in West Chester, Pennsylvania is among the world's largest specialty retailers of video and computer games and also sells video game hardware, PC productivity software and accessories, and interactive toys and trading cards. Electronics Boutique currently operates 676 stores in 46 states, Puerto Rico, Canada, Australia and South Korea primarily under the names Electronics Boutique, EBX and EBKids. EBWorld.com provides customers with a broad selection of electronic games and accessories, plus the latest video game news and reviews, backed by solid customer service. For more information, visit www.ebworld.com.