Circuit City Stores Announces Special Pricing, Rebate and Return Procedures For Divx Customers

RICHMOND, VA -- In conjunction with the announcement that Digital Video Express will cease operations, Circuit City Stores, Inc. (NYSE: CC, KMX) has announced plans to provide Divx rebates at its store locations, special pricing for Divx-featured DVD players and Divx software, and extensions on its normal 30-day low price guarantee and return policies.

"We have received positive feedback from customers who have purchased Divx-featured DVD players," said W. Alan McCollough, president and chief operating officer of Circuit City Stores, Inc. "We regret that a lack of support from studios and other retailers will prohibit consumers from receiving the exceptional benefits of the Divx system. At this point, however, we want to make sure that all Circuit City customers receive a refund for the added cost of the feature and that the refund process works smoothly and conveniently."

Digital Video Express is providing via mail a $100 cash rebate to all consumers who purchased Divx players prior to June 16, 1999. All Divx-featured DVD players are fully functional DVD players and will continue to operate as such; but the rebate will compensate consumers for the maximum added retail price of the Divx feature. Rebate forms will be available at www.divx.com, www.circuitcity.com, Circuit City stores or by calling 1-888-639-DIVX.

In addition, Circuit City will immediately reduce the price of all Divx-featured DVD players. Prices will vary based on player brand and DVD features. The company will extend its normal 30-day low price guarantee and its 30-day product return policy to 60 days from date of purchase for all Divx-featured players purchased prior to June 16, 1999. Circuit City customers who have purchased players in the last 60 days may choose the $100 Divx rebate, the new lower Circuit City price or an exchange or refund.

Circuit City also is reducing the price of all Divx discs to $1.99. For that price, consumers will continue to receive a 48-hour viewing period that begins when they insert their discs into a registered Divx-featured player; however, all initial and any desired additional viewing periods must now be completed by June 30, 2001.

Circuit City is a leading national retailer of brand-name consumer electronics, personal computers, major appliances and entertainment software. With headquarters in Richmond, Va., Circuit City Stores, Inc. operated at the end of May 546 Circuit City Superstores, two consumer electronics-only stores and 46 mall-based Circuit City Express stores.

This release may contain forward-looking statements, which are subject to risks and uncertainties, including, but not limited to, risks associated with the development of new business concepts and risks associated with year 2000 issues. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the company's SEC filings.

SOURCE Circuit City Stores, Inc.