CarMax Signs Sale/Leaseback Agreement With Capital Automotive

Business Wire, August 15, 2001

Business Editors/Automotive Writers

RICHMOND, Va.--(BUSINESS WIRE)--Aug. 15, 2001

CarMax Auto Superstores, Inc. (NYSE: KMX) today announced that it has entered into a sale/leaseback agreement with Capital Automotive REIT (Nasdaq: CARS) covering nine CarMax superstore properties valued at $102.4 million.

"CarMax now has the financial strength to undertake this sale/leaseback transaction on a standalone basis, at competitive rates and without any guarantees from our parent Circuit City Stores," said Keith D. Browning, CarMax's executive vice president and chief financial officer. "We are particularly pleased that our first solo property financing is with an organization the caliber of Capital Automotive."

Thomas D. Eckert, president and chief executive officer of Capital Automotive, said, "We look forward to a long-term relationship with CarMax, an excellent partner and a superior credit in our portfolio."

The nine CarMax superstores covered by the transaction are located in the following seven states: California, Florida, Maryland, South Carolina, Tennessee, Texas and Virginia. The initial lease term is 15 years with two 10-year renewal options.

CarMax is the nation's leading specialty retailer of used cars. With headquarters in Richmond, Va., the company currently operates 40 retail units in 37 locations, including 33 used-car superstores. CarMax also operates 20 new-car franchises, most of which are integrated or co-located with its used-car superstores. For more information, access the company's Web site at CarMax.com.

CarMax is a subsidiary of Circuit City Stores, Inc. Circuit City Stores, Inc. has two series of common stock, one of which is the CarMax Group stock, which tracks the performance of the CarMax operations, and the other of which is the Circuit City Group (NYSE: CC) stock, which tracks the performance of the Circuit City business and the retained interest in the CarMax Group. A portion of the earnings of the CarMax business is attributed to the CarMax Group stock; the balance is attributed to the Circuit City Group stock.

Capital Automotive, headquartered in McLean, Va., is a self-administered, self-managed real estate investment trust formed to acquire the real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related businesses. Capital Automotive currently owns 259 properties with an asset value of approximately $1.2 billion, consisting of 379 franchises in 27 states. Additional information on Capital Automotive is available at the company's Web site at www.capitalautomotive.com.

This release contains forward-looking statements, which are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Circuit City Stores, Inc. SEC filings.

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