DIRECTV Broadband Signs Agreement With Circuit City to Sell Residential DSL Services At Retail Stores Throughout the Nation

Business Wire, August 29, 2001

Business Editors

CUPERTINO, Calif.--(BUSINESS WIRE)--Aug. 29, 2001

DIRECTV Broadband, Inc. and Circuit City Stores, Inc., one of the largest national retailers of consumer electronics, today announced an agreement that will for the first time make DIRECTV DSL(TM)available in the national retail marketplace. The partnership marks DIRECTV Broadband's entry into the national retail marketplace and is a hallmark of the acquisition in April of this year by Hughes Electronics Corporation (NYSE:GMH), which also owns DIRECTV, Inc., and further positions Circuit City as a leading retailer for broadband technology.

In September, Circuit City will roll out its in-store service offering of DIRECTV DSL(TM), the high-speed Internet service offered by DIRECTV Broadband. By the end of October, 435 Circuit City stores throughout the nation will offer DIRECTV DSL(TM). At conveniently placed kiosks, customers will be able to enter their phone number and find out instantly if they have access to DIRECTV DSL service in their area. From that point, the ordering process can be completed right in the store.

"Circuit City knows that staying connected is important to our customers," said W. Alan McCollough, Circuit City's president and chief executive officer. "That's why we're committed to being the leading retailer of the most comprehensive selection of broadband technology. This alliance strongly enhances the high speed Internet access choices available in Circuit City stores and is one more way to let our customers know, 'We're with You.'"

"This agreement sharpens our competitive edge and is a turning point in our sales strategy as part of the HUGHES and DIRECTV family," said Ned Hayes, president and chief executive officer DIRECTV Broadband. "We are able to leverage DIRECTV's strong historical partnership with Circuit City to build loyal relationships with our subscribers, offering more choices of how and where they would like to order our service. As we work in partnership with DIRECTV to offer consumers a bundled whole-house entertainment and information solution, it will be critical to have a strong national retail strategy and partnership in place."

DIRECTV Broadband, which was formerly known as Telocity, has specialized since its inception in offering the simplest, integrated service platform to its customers. The company has designed and manufactures its own proprietary, award-winning, self-installable residential gateway. Once a customer has ordered DIRECTV DSL(TM), the company works with the phone companies in the customer's area to provide the DSL technology to the customer's home. DIRECTV Broadband then will ship the company's award-winning, residential gateway to the customer, who self installs the gateway and is up and surfing within minutes in most cases. Because DIRECTV Broadband provides end-to-end services to its customer base, a retail partner does not need to store or track inventory.

DIRECTV Broadband's residential gateway is designed to enable value-added services for consumers, such as home networking, secure telecommuting, home monitoring and automation, voice bundling and entertainment services.

About DIRECTV Broadband, Inc.

DIRECTV Broadband, Inc. is a leading nationwide provider of broadband services for the home. DIRECTV Broadband, Inc. provides its customers with the DIRECTV DSL(TM) service, which improves the dial-up experience through faster and reliable services that enhance Internet surfing, shopping and communications. The company's award-winning gateway has been designed to enable secure telecommuting, home networking, home monitoring and automation, voice bundling and entertainment services. DIRECTV Broadband, Inc. was formerly known as Telocity, and was acquired in April 2001 by HUGHES (NYSE:GMH). HUGHES, which also owns DIRECTV, Inc., is the country's first provider to offer on a national basis a portfolio of consumer entertainment and information services that includes digital multi-channel television, and wired and satellite broadband Internet access. Learn more about DIRECTV Broadband, Inc. and its DIRECTV DSL(TM) service offering at www.DIRECTVDSL.com. DIRECTV, the Cyclone Design logo, and DIRECTV DSL are trademarks of DIRECTV, Inc., a unit of Hughes Electronics Corp. All other trademarks belong to their respective owners.

About Circuit City Stores, Inc.

With 598 Circuit City Superstores and 32 mall-based Circuit City Express stores, Circuit City (NYSE:CC) operates more consumer electronics specialty superstores in more markets than any other retailer. Circuit City's online site, www.CircuitCity.com, offers an integrated clicks-and-mortar experience with a comprehensive selection of consumer electronics, personal computers, movies, music and games; extensive product information; and Express Pick-up, which allows customers to order online and pick up in store. Circuit City's headquarters are located in Richmond, Va.

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