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Circuit City Stores, Inc. Amends Shareholder Rights Plan.

RICHMOND, Va., July 10 /PRNewswire/ --

Circuit City Stores, Inc. (NYSE: CC; KMX) announced today that its board of directors has amended the Shareholders Rights Plan to revise the beneficial ownership threshold at which a person or group of persons becomes an "acquiring person" and triggers certain provisions of the plan.

As revised, a person or group would become an "acquiring person" if that person or group acquires or obtains the right to acquire beneficial ownership of either:

* 15 percent or more of the outstanding shares of Circuit City group

stock, or

* 30 percent or more of the outstanding shares of CarMax group stock and

15 percent or more of the voting power of the outstanding shares of

common stock, which includes both the Circuit City group stock and

CarMax group stock.

Any person or group who when the amendment was adopted was below the former threshold, which was 20 percent or more of the voting power of the outstanding shares of common stock, but who at that time met the new threshold, will be grandfathered under the former threshold until such time as the holding drops below the new threshold.

The amendment also made a number of technical changes relating to the operation of the plan.

Circuit City is a leading national retailer of brand-name consumer electronics, personal computers and entertainment software. The company's CarMax subsidiary is the nation's leading specialty retailer of used cars. With headquarters in Richmond, Va., the company operates 595 Circuit City Superstores and 32 mall-based Circuit City Express stores, giving it more locations in more markets than any other consumer electronics specialty retailer. CarMax operates 40 retail units in 37 locations, including 33 used- car superstores. CarMax operates 21 new-car franchises, most of which are integrated or co-located with used-car superstores. For more information, access the company's Web sites at http://www.CircuitCity.com and http://www.CarMax.com .

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Publication:PR Newswire
Geographic Code:1USA
Date:Jul 10, 2001
Words:326
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