Gregg Appliances, Inc. Announces Results for the Quarter Ended December 31, 2006.

INDIANAPOLIS -- Gregg Appliances, Inc. ("Gregg Appliances") today reported operating results for its third quarter ended December 31, 2006.

Gregg Appliances reported a 19.2% increase in total sales for the three months ended December 31, 2006, as sales increased to $335.1 million compared to $281.2 million for the comparable prior year period. This increase in sales was attributable to the addition of seven stores during the past 12 months and a 5.6% comparable store sales gain for the third quarter of fiscal 2007. The comparable store sales performance was driven by gains in video, major appliances and bedding. Video sales performance was fueled by flat panel television sales growth outpacing the sales decline in projection and tube televisions. It is anticipated that the Company's comparable store sales growth will range between the mid- to high- single digits during the fourth quarter of fiscal 2007.

Net income for the three months ended December 31, 2006 was $10.9 million as compared to net income of $22.6 million for the comparable prior year period. The prior year results included a $27.9 million pretax gain associated with the Company entering into an agreement with a third party to transfer the product service obligations for previously sold extended service plans. The current year earnings were primarily attributable to improved product mix, an increase in select core product margins, the leveraging effect of our sales growth across many expense categories and productivity gains in labor.

Sales for the nine months ended December 31, 2006 increased 14.3% to $776.1 million from $679.1 million for the nine months ended December 31, 2005. This increase in sales was primarily attributable to the addition of seven stores during the past 12 months and a 2.9% increase in comparable stores sales during the first nine months of fiscal 2007. The comparable store sales performance was driven by gains in video, major appliances and bedding.

Net income for the first nine months of fiscal 2007 was $13.0 million compared to net income of $18.5 for the nine months ended December 31, 2005. Net income in the prior year included a $2.5 million pretax charge related to the decision to outsource product service and repair offerings as well as a $27.9 million pretax gain for the sale of product service obligations for previously sold extended service plans. The improvement in earnings was primarily attributable to an increase in core product margin and the levering effect of our sales growth across many expense categories, coupled with our decision last year to outsource our product service and repair work to third-party providers and sell third-party ESPs.

Gregg Appliances will be conducting a conference call to discuss operating results for the nine months ended December 31, 2006, on Thursday, February 15, 2007 at 10:00 a.m. (Eastern). You may access this call starting at 9:45 a.m. (Eastern).

The conference phone number is 1-800-640-9765. When joining the call, please refer to reference number 16726519. Jerry Throgmartin, the Chief Executive Officer of Gregg Appliances, is the conference call leader. In consideration of other participants, it is requested that cellular phones not be used. The conference call will be recorded and available for playback through Thursday, March 1, 2007 at 11:59 p.m. (Central). Playback can be reached by dialing 1-877-213-9653 and requesting reference number 16726519. Information regarding non-GAAP financial measures, including EBITDA (earnings before net interest expense, income tax expense, depreciation and amortization), discussed in the conference call can be found at www.hhgregg.com on the investor relations page.

Gregg Appliances is a specialty retailer of consumer electronics, home appliances, bedding and related services. It operates under the hhgregg[R] and Fine Lines[R] brands in 76 retail stores in Alabama, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Safe Harbor 

The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release and the conference call that will address Gregg Appliances' operating results include forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the expectations, beliefs, plans, objectives, assumptions or future events or performance of Gregg Appliances are forward-looking statements.

Gregg Appliances has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While Gregg Appliances believes these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These and other important factors may cause Gregg Appliances' actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from Gregg Appliances' expectations are: changes in consumer preferences; its ability to effectively manage and monitor its operations, costs and service quality; competition in existing, adjacent and new markets; its reliance on a small number of manufacturers; the failure of manufacturers to introduce new products and technologies; customer acceptance of new technology; its dependence on our key management personnel and its ability to attract and retain qualified sales personnel; its ability to negotiate with its suppliers to provide product on a timely basis at competitive prices; the identification and acquisition of suitable sites for its stores and the negotiation of acceptable leases for those sites; the effect of general and regional economic and employment conditions on its net sales; its ability to maintain its rate of growth and penetrate new geographic areas; its ability to obtain additional financing and maintain its credit facilities; its ability to maintain and upgrade its information technology systems; changes in cost for print, radio and television advertising; and changes in trade regulations, currency fluctuations and prevailing interest rates.

Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release and the earnings conference call are more fully described in the "Risk Factors" section and elsewhere in Gregg Appliances' Form 10-K filed with the SEC on June 26, 2006. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release and that will be made on the earnings conference call are made only as of the date hereof. Gregg Appliances does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.

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