This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Circuit City Stores, Inc. (CC: chart) on April 9, 2008.

Management:

Chairman of the Board, President, Chief Executive Officer: Philip J. Schoonover
Chief Operating Officer, Executive Vice President: John T. Harlow
Chief Financial Officer, Executive Vice President: Bruce H. Besanko
Chief Merchandising Officer, Senior Vice President: John J. Kelly
Director, Corporate Communications: Bill Cimino

Key Investors Issues

- EPS were 3 cents per share compared to last year’s loss of 3 cents per share.
- Profit was $4.85 million compared to loss of $4.25 million a year earlier.
- Sales fell 7.7% to $3.65 billion from $3.95 billion.

Fourth Quarter Highlights

Net sales decreased 7.7% to $3.65 billion from $3.95 billion in the prior year, with consolidated comparable store sales decreasing 10.4%.

- Net sales for the domestic segment decreased 8.8% to $3.45 billion from $3.78 billion last year, with comparable store sales decreasing 11.3%. Direct channel sales, including Web- and call center-originated sales, grew 14%, and firedog(SM) PC services and home theater installation revenues grew 11% from the prior year''s fourth quarter.
- The domestic segment opened 18 incremental Superstores, relocated 8 Superstores, closed 3 Superstores and closed 2 other locations. An additional Superstore was closed in February in advance of opening a relocated store in fiscal 2009.

In the video category, Circuit City generated a low-double-digit comparable store sales decrease.

- Strong double-digit growth in comparable store sales of flat panel televisions led performance in the category. Total television comparable store sales decreased by a single digit, as comparable store sales decreases in projection and tube televisions more than offset the flat panel television increase. Comparable store sales of digital imaging products and accessories as well as camcorders decreased by double digits.

- In the information technology category, Circuit City generated a high- single-digit comparable store sales decrease in the fourth quarter. Comparable store sales of desktop computers declined by double digits, and comparable store sales of notebook computers increased by a low-single digit.
- In the audio category, Circuit City generated a double-digit comparable store sales decrease. Comparable store sales of navigation products increased by strong double digits. Comparable store sales of portable digital audio, mobile, home audio and digital satellite radio products declined by strong double digits.
- In the entertainment category, Circuit City generated a high-single-digit comparable store sales decrease. Comparable store sales of video gaming products increased by a high-single digit. Comparable store sales of video software and music software declined by double digits.

- Domestic segment extended warranty net sales were $75 million, or 2.2% of domestic segment net sales compared with $110.2 million, or 2.9% of domestic segment net sales, last year. Firedog(SM) PC services and home theater installation revenues increased 11% to $74.3 million from $66.9 million last year.

Net sales for the international segment increased 17.4% to $200.6 million from $170.9 million in the prior year fourth quarter.

The increase was driven by the favorable impact of fluctuations in foreign currency exchange rates of 16% and the comparable store sales increase of 8.6% in local currency for the quarter. These increases were partially offset by the impact of the year-over-year net decrease of 27 retail stores and dealer outlets.

- The consolidated gross profit margin was 20.6% compared with 23.9% in last year''s fourth quarter. Fourth quarter domestic segment gross profit margin decreased 394 basis points from the prior year period. The decrease in gross profit margin was driven by a decrease in product margins, primarily driven by the maturation of the television product cycle and competitive pressures across many product categories, as well as an increase in shrink and a decrease in extended warranty net sales, partially offset by a one-time benefit for the estimated non-redemption of rewards points from the inception of the company''s rewards program.
- The international segment''s gross profit margin increased 719 basis points compared to last year''s result and favorably impacted the consolidated gross profit margin decline by 71 basis points. The international segment''s results for the fourth quarter of fiscal 2007 include $3.3 million, or 195 basis points of international segment sales, for inventory write-offs associated with plans to exit certain product lines, clearance sales associated with store closures, and other actions to align international segment merchandise assortment with consumer demand. Similar expenses were not incurred in fiscal 2008. The improvement also was driven by reduced markdowns from clearance activities compared with the prior year''s fourth quarter.

Selling, general and administrative (SG&A) expenses were 20.2% of consolidated net sales compared with 21.1% of consolidated net sales in last year''s fourth quarter.

- The domestic segment''s SG&A expense-to-sales ratio decreased 65 basis points compared with the prior year''s fourth quarter. The decrease primarily reflects an 87 basis point decrease in expenses associated with store and facility closures and other restructuring activities and a 49 basis point decrease in compensation costs that resulted primarily from the company''s expense reduction initiatives. These decreases were partially offset by the overall de-leveraging impact of lower sales and a 121 basis point increase in expenses related to the 62 domestic segment stores that have opened during the past 12 months.
- During the fourth quarter of fiscal 2007 and the first quarter of fiscal 2008, the company made structural changes to reduce costs and expenses. During the three months and twelve months ended February 29, 2008, the company achieved approximately $65 million and $200 million, respectively, in savings from these initiatives compared with budgeted expenses. These savings were partially offset by investments to support strategic initiatives, including incremental and relocated stores and information technology.
- The international segment''s SG&A expense-to-sales ratio decreased to 27% of international segment sales from 37.3% last year and improved the consolidated expense-to-sales ratio by 13 basis points. During the fourth quarter of fiscal 2007, the segment incurred pre- tax store expenses of $10.3 million, or 602 basis points of international segment net sales, for store closures and severance. Similar expenses were not incurred in fiscal 2008. The improvement in the expense-to-sales ratio also reflects the overall leveraging impact of higher sales.

The company recorded non-cash impairment charge of $26 million, or 71 basis points of fourth quarter consolidated net sales, related to the goodwill associated with the international segment.

- The company performed an impairment analysis, which included a third-party valuation, and determined that an impairment charge would be required primarily due to a decline in comparative market multiples of earnings. The carrying cost of the segment has increased as the value of the Canadian dollar has strengthened. The net assets of the international segment at February 29, 2008, totaled $316 million, of which $118 million is goodwill.
- In the fourth quarter of fiscal 2007, the company recorded a non-cash impairment charge of $92 million, or 233 basis points of fourth quarter consolidated net sales, related to the goodwill associated with the international segment.

- The company recorded an income tax benefit of $7.3 million. The benefit primarily reflects a reduction in the tax valuation allowance recorded in the third quarter, partially offset by income tax expense incurred in Canada. For the fourth quarter of fiscal 2007, income tax expense was $34.3 million.
- Net earnings from continuing operations totaled $4.5 million, or 3 cents per share, compared to a net loss of $7.2 million, or 4 cents per share, for the fourth quarter of fiscal 2007.