Best Buy Exits the Analog TV Business, Outlines Plans to Help With Digital Broadcast Transition

Business Wire, Oct 17, 2007

Leading Consumer Electronics Retailer Will Work to Educate Consumers About DTV, Participate in the Converter Box Coupon Program

MINNEAPOLIS -- As the end of the analog broadcast era draws near, Best Buy, the nation's largest consumer electronics retailer, is taking steps to create a smooth transition to digital television (DTV) for all consumers. That's why Best Buy today announced that they have pulled all remaining analog television products from store shelves and will only sell digital video tuners in the future. The company also announced that they will participate in the NTIA DTV Converter Box Coupon Program to help people purchase digital converter boxes for their analog televisions. Coupon-eligible converter boxes will be available in Best Buy stores beginning in early 2008.

Best Buy is the first CE retailer to publicly announce an exit from the analog television business. Stores were instructed to stop selling these products on October 1, 2007.

"We are committed to helping people understand the digital television transition, and exiting the analog video business is one way we can help avoid confusion," said Mike Vitelli, senior vice president of electronics for Best Buy. "Customers can now be sure that any television they purchase at Best Buy will be fully compliant with the digital television transition. And for customers who aren't in the market for a new television, we can help you find the best solution to meet your needs."

Best Buy has been providing in store and online information about the DTV transition since early 2006. Brochures are available in stores and detailed information can be found on BestBuy.com. Best Buy's home theater specialists have also been trained to answer questions and help customers figure out the best way to comply with the DTV transition. These education efforts will continue to grow through the remainder of 2007 all the way through the transition date in February 2009.

Three Options For Consumers to Comply with the DTV Transition

By February 17, 2009, consumers who receive over-the-air TV programming will have three options to receive TV broadcast signals after the DTV transition. These three options include:

* Purchase a digital-to-analog converter box that plugs in to an existing television. The converter boxes will be available at Best Buy locations in early 2008.

* Subscribe to a cable, satellite or telecommunications service provider if all desired local broadcast stations are carried by that service.

* Purchase a new television set with a built-in digital tuner. For consumers choosing to purchase a new digital TV, Best Buy will provide recycling options for the existing television.

Best Buy will Accept NTIA DTV Converter Box Coupons

Beginning January 1, 2008, US households can request up to two electronic coupons, at a value of $40 each, that can be used at Best Buy and other participating retailers toward the purchase of eligible digital-to-analog converter boxes.

Best Buy will begin to stock and sell coupon-eligible DTV converter boxes and will be accepting NTIA coupons beginning in early 2008. An exact date for the rollout of the boxes in stores is still being determined.

About Best Buy Co., Inc.

Best Buy Co., Inc. (NYSE:BBY) operates a global portfolio of brands with a commitment to growth and innovation. Our employees strive to provide customers around the world with superior experiences by responding to their unique needs and aspirations. We sell consumer electronics, home-office products, entertainment software, appliances and related services through approximately 1,200 retail stores across the United States, throughout Canada and in China. Our multi-channel operations include: Best Buy (BestBuy.com, BestBuy.ca and BestBuy.com.cn), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com and GeekSquad.ca), Pacific Sales Kitchen and Bath Centers (PacificSales.com), Magnolia Audio Video (Magnoliaav.com), Jiangsu Five Star Appliance Co. (Five-Star.cn) and Speakeasy (Speakeasy.net). Best Buy supports the communities in which its employees work and live through volunteerism and grants that benefit children and education.