Media Contact:

Jon Sandler
Jonathan.Sandler@bestbuy.com

In conjunction with the transaction, Best Buy has agreed to pay CPW £29 million (approximately $45 million as of April 29, 2013) in satisfaction of obligations under existing agreements, including the parties’ Global Connect partnership, which will be terminated at closing.

The boards of directors of both companies have approved this transaction. All directors of CPW have also signed letters of commitment to vote their shares in support of the transaction. The transaction is subject to approval by the shareholders of CPW, but is not subject to any closing conditions in respect of financing. The transaction is expected to close by the end of June 2013.

Beginning in the first quarter of fiscal 2014, Best Buy intends to report the results of the Best Buy Europe joint venture in discontinued operations, including an estimated non-cash asset impairment charge of approximately $200 million, associated with accumulated foreign currency translation losses that will be written off at the time of closing.

Prior to entering into this agreement, U.S. GAAP revenues for Best Buy Europe in fiscal 2014 were expected to be in the range of $5.5 to $5.6 billion. Adjusted (non-GAAP) diluted earnings per share were expected to be immaterial.

“After reviewing the business and spending time with our partners, we concluded that the timing and economics were right to enter into this agreement with CPW,” said Hubert Joly, president and chief executive officer of Best Buy. “This transaction allows us to 1) simplify our business; 2) substantially improve our Return on Invested Capital, one of the five pillars of our Renew Blue transformation; and 3) strengthen our balance sheet,” added Joly.

“Each international market is different and the sale of our European operations should not suggest any similar action in our other international businesses,” said Joly.

Best Buy formed the Best Buy Europe joint venture with CPW in June 2008. The joint venture operates stores in eight countries. Additional details on this transaction are available in the Company’s Form 8-K, to be filed this morning.

Forward-Looking and Cautionary Statements:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management’s current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as “anticipate,” “believe,” ”assume,” “estimate,” “expect,” “intend,” “project,” “guidance,” “plan,” “outlook,” and other words and terms of similar meaning. Factors that could cause such differences include: uncertainties regarding the expected benefits from and effects of the transaction; risks associated with CPW’s ability to obtain shareholder approval of the transaction, the parties’ ability to satisfy the other conditions and terms of the transaction, and to execute the transaction in the estimated time frame, if at all; and other risks and uncertainties, including those detailed from time to time in the registrant’s periodic reports (whether under the caption Risk Factors or Forward-Looking Statements or elsewhere). The registrant assumes no obligation to revise or update any forward-looking statement, except as otherwise required by law.

Investor Contacts:

Bill Seymour
(612) 291-6122 or Bill.seymour@bestbuy.com

Mollie O’Brien
(612) 291-7735 or Mollie.obrien@bestbuy.com

Media Contacts:

Matt Furman
(612) 231-3993 or Matt.furman@bestbuy.com

Amy von Walter
(612) 291-4490 or Amy.vonwalter@bestbuy.com

Prior to joining the company in May 2011, Fradin, 57, was Chairman and Chief Executive Officer of Aon Hewitt. Fradin oversaw the successful 2010 merger between Aon Consulting and Hewitt Associates, having been Chairman of the Board and Chief Executive Officer of Hewitt since 2006.

“We are delighted to have Russ join our Board,” said Hatim Tyabji, Chairman of the Best Buy Board of Directors. “His background in operations, streamlining cost structures, executive compensation and strategic consulting will be beneficial to Best Buy as it continues its Renew Blue transformation,” Tyabji added. “We look forward to Russ offering his insights in support of management’s work to transform Best Buy and make it the preferred destination and authority for technology products and services.”

“I have admired Best Buy for a long time and am honored to be asked to join the company’s Board of Directors,” said Fradin. “I have a high regard for the work Hubert and his executive team have already done to restore Best Buy to its rightful place as a premier specialty retailer. The transformation currently underway has the potential to result in a remarkable business turnaround story,” Fradin added.

Earlier in his career, Fradin served as chief executive officer of the BISYS Group, Inc., and also held various executive positions at Automatic Data Processing, Inc. (ADP). In addition, he worked many years as a management consultant at McKinsey & Company, where he was a senior partner. He holds a BS in Economics from the Wharton School of the University of Pennsylvania and an MBA from Harvard Business School.

Fradin joined the Best Buy Board of Directors on April, 17. He will stand for ratification at the company’s annual shareholder meeting in June 2013.

Ron James, a member of the Best Buy Board since May 2004, has decided to not stand for re-election at this year’s shareholder meeting. James is the president and CEO of the Center for Ethical Business Cultures. He served as chair of the Compensation and Human Resources Committee of the Best Buy Board and as a member of the Finance and Investment Policy Committee.

“Ron and I have been colleagues for nearly 10 years and, in that time, I have come to admire his unflagging commitment to bringing the best governance practices and highest ethical standards to every decision he has been a part of on the Best Buy Board,” said Tyabji. “I know I speak for everyone when I say that we will miss him in the Boardroom, and his contributions in governance, finance and compensation.”

“Leaving the Board is not easy but, with our new CEO and executive team firmly in place, it feels like a good time,” said James. “I will always be rooting for this great company and leave certain that its best days are still ahead.”

James will serve out the rest of his term and will officially step down at the company’s annual shareholder meeting.

Media Contact:

Matt Furman

Matt.Furman@bestbuy.com

Receiving 5 percent back in rewards is just one of two options available to card holders; special financing options are also available on all qualified purchases. Reward Zone credit cards are unique among retailer credit cards for allowing the card holder to choose which benefit they would like to receive with each purchase.

The new changes affect many of Best Buy’s most loyal customers. Reward Zone is one of the largest loyalty programs in the United States of its kind with more than 40 million active members – a substantial portion of which have either a Reward Zone credit card or a Reward Zone MasterCard.

If card holders decide to choose financing, they have a wide selection of options that are available every day. They can choose between six-month interest-free financing for purchases of $149 and up, 18-month no-interest financing for purchases of $429 and up, and 24-month interest-free financing for home theatre purchases of $599 and up.

Media Contact:

press@bestbuy.com

“Over the past several months, I have come to know and respect Hubert, and have a high regard for the work he and his executive team are doing to revitalize Best Buy for the benefit of all stakeholders,” said Schulze. “My dedication to the company that I founded and love is unwavering and, together with Hubert and the Board, I determined that the best way to support Best Buy would be to return in support of the initiatives underway.”

“At the same time, it is a great privilege to nominate to the Board two long-time colleagues, Brad Anderson and Al Lenzmeier, who helped build Best Buy into what it is today and will continue adding great value in their new role,” Schulze added.

“The Board has full confidence in Hubert and the management team, and is entirely supportive of the company’s Renew Blue transformation efforts,” said Hatim Tyabji, chairman of the Best Buy Board of Directors. “My fellow Board members and I are pleased to welcome Dick back to the company as Chairman Emeritus and are confident that the role he will play in support of the management team can only accelerate the progress that Best Buy has already made.”

“I am delighted our Founder, Dick Schulze, is returning to the company as its Chairman Emeritus. His passion, wisdom and insight are legendary, and I know I speak for all my colleagues when I say it was wonderful to see him come to our headquarters recently and engage with employees as he and I walked the halls,” said Joly. “I look forward to his engagement as we move forward. I am also delighted to have Brad and Al join our Board and to have the company benefit from their experience and wisdom.”

Mr. Anderson and Mr. Lenzmeier join the Best Buy Board of Directors, effective immediately. They will stand for election at the company’s annual shareholder meeting in June 2013.

Media Contact:

Matt Furman
Matt.Furman@bestbuy.com

Union Square 24-Hour Store Sells Z10 to First BlackBerry Fan 

Best Buy sold the first BlackBerry Z10 on AT&T when the handset launched at 12:01 a.m. on Friday, March 22.

Best Buy’s Union Square, N.Y. store offered customers the chance to be the first to see, try and buy the Z10 at a midnight launch event. The event featured Z10 demos and giveaways of Alicia Keys tickets, Z10 devices and BlackBerry merchandise.

The BlackBerry Z10 is now available on AT&T at the more than 1,400 Best Buy and Best Buy Mobile stores across the U.S. The Z10 is $199.99 with a two-year contract. The handset will launch at Best Buy on T-Mobile March 26 (BestBuy.com only) and on Verizon March 28.

Best Buy is the only place in the U.S. where consumers can learn about the new phone’s features from a specially-trained BlackBerry Expert blue shirt employee. BlackBerry invested in additional in-person, web-based and on-device training to ensure that each Best Buy and Best Buy Mobile store has a BlackBerry Expert to help customers understand everything they can get out of the new Z10 device.

Best Buy offers consumers the choice of any carrier, any phone and any plan with lots of unbiased advice at all of the Best Buy and Best Buy Mobile stores. Best Buy and Best Buy Mobile stores feature an array of services aimed at improving customers’ experiences including Upgrade Checker to determine eligibility for a new phone; free Walk Out Working service where contacts and data are transferred and e-mail accounts are set up before leaving the store; in-store Trade-In options where customers can get up to a $200 Best Buy gift card instantly for their used mobile phone; Geek Squad Protection, which offers no-hassle repair to protect devices from everyday wear and tear, accidental damage and more; as well as a full array of accessories for customers to protect, personalize and make the most out of their new mobile devices.

Best Buy is now offering pre-registrations for the Samsung Galaxy S4 on BestBuy.com and in all Best Buy and Best Buy Mobile stores.

The pre-registration process is simple. Customers visit www.bestbuy.com/thenextbigthing and sign up to receive text message notifications when the Samsung Galaxy S4 is available for pre-sale on their selected mobile carrier. They will also receive a text message notification when the phone is available for purchase at Best Buy, Best Buy Mobile and on BestBuy.com.

For more details, visit www.bestbuy.com/thenextbigthing.

Best Buy offers consumers the choice of any carrier, any phone and any plan with lots of unbiased advice at all of the Best Buy and Best Buy Mobile stores. Best Buy and Best Buy Mobile stores feature an array of services aimed at improving customers’ experiences including Upgrade Checker to determine eligibility for a new phone; free Walk Out Working service where contacts and data are transferred and e-mail accounts are set up before leaving the store; in-store Trade-In options where customers can get up to a $200 Best Buy gift card instantly for their used mobile phone; Geek Squad Protection, which offers no-hassle repair to protect devices from everyday wear and tear, accidental damage and more; as well as a full array of accessories for customers to protect, personalize and make the most out of their new mobile devices.

“Ron has been an integral part of Best Buy’s success in Canada for more than two decades,” said Shari Ballard, executive vice president and president, Best Buy International. “His exceptional leadership skills, broad operating experience and strategic agility make him the right person to lead the organization during this important time as we look to continue our Renew Blue transformation across our business.”

As senior vice president of merchandising and eCommerce since 2008 for Best Buy Canada, Wilson led the strategic visions of www.bestbuy.ca and www.futureshop.ca, making them the most successful online electronics retail sites in Canada. Wilson previously managed several other units within Best Buy Canada, including merchandising, operations and marketing.

“I am very excited to take on this role with a company that I know so well and truly believe in,” said Wilson. “While we are clearly not satisfied with our recent performance, Best Buy Canada and Future Shop brands remain strong and I am committed to ensuring that we are well positioned in the market far into the future.”

Media Contact:

Matt Furman
matt.furman@bestbuy.com

Amy von Walter
612-437-5956
amy.vonwalter@bestbuy.com

$965 Million Adjusted Annual Free Cash Flow

$150 Million in Phase One Renew Blue Cost Reductions

MINNEAPOLIS, March 1, 2013 - Best Buy Co., Inc. (NYSE: BBY) today announced results for the 13-week fourth quarter (“Q4 FY13”) and 53-week fiscal year ended February 2, 2013 (“FY13”), as compared to the 13-week fourth quarter (“Q4 FY12”) and the 52-week fiscal year ended January 28, 2012 (“FY12”). In FY13, the extra week occurred during the first quarter.

Hubert Joly, Best Buy President and CEO commented, “On revenue growth of 0.2% we delivered non-GAAP diluted earnings per share of $1.64. Adjusted free cash flow for the year reached $965 million as we aggressively reduced inventories and focused on working capital and cash flow management. To deliver these better-than-expected results, renewed momentum in the Domestic business more than offset continued softness in the International business.”

Joly continued, “Fourth quarter Domestic comparable store sales increased 0.9%, with an overall 10 basis point decline in the gross profit rate. Domestic online revenue increased 11%. These results were driven by a compelling assortment of new products in key growth categories, increased “blue-shirt” training and higher customer engagement in our retail stores, and impactful ‘traffic-generating’ marketing activities. It was a quarter that was driven, not given and we are encouraged by the intensity, collaboration and momentum that was generated by both our front line and corporate teams as we began to execute against our Renew Blue initiatives.”

Joly concluded, “To build on this momentum in fiscal 2014, we remain intently focused on the two problems we have to solve: stabilizing and improving our comparable store sales and increasing profitability across our global businesses. We recognize, however, that fiscal 2014 is a year of transition and that further investment will be required to advance our Renew Blue transformation. I would like to highlight six key priorities that will be pursued in fiscal 2014 that fall under the various pillars of Renew Blue. These priorities are (1) accelerating online growth; (2) escalating the multi-channel customer experience; (3) increasing revenue and gross profit per square foot through enhanced store space optimization and merchandising; (4) driving down cost of goods sold through supply chain efficiencies; (5) continuing to gradually optimize the U.S. real estate portfolio; and (6) further reducing SG&A costs. In addition, we will focus on driving operational improvements in our International business.”

Sharon McCollam, EVP, CAO and CFO of Best Buy, commented, “To support these initiatives, we are expecting capital spending in fiscal 2014 to be in the range of $700 to $800 million and incremental SG&A investments in the range of $150 to $200 million. These investments will be principally in the areas of online, mobile and the multichannel customer experience, in addition to non-recurring costs associated with the insourcing of IT (expected to be completed in FY14) and the replatforming of bestbuy.com (expected to be completed in FY15). These incremental SG&A investments, however, are expected to be substantially offset by our Renew Blue cost reduction initiatives, including the $150 million of Phase One reductions that were enacted over the last several weeks and the additional reductions that we are expecting to announce in the second quarter and later this year.”

McCollam continued, “From a revenue and earnings perspective in fiscal 2014, we will not be providing financial guidance. Directionally, however, we do expect the first quarter to be under significant pressure due to (1) the absence of an additional week and the impact of this year’s “pre-Super Bowl” sales shifting into Q4 FY13 versus Q1 FY14 (an impact of approximately $0.14 in diluted EPS); (2) a less favorable product and services mix due to the timing of high velocity product launches that occurred in Q1 FY13 that are not expected to recur in Q1 FY14; (3) the first quarter carry-over effect of sales and marketing investments that were implemented in the second and third quarters of FY13; (4) greater investment in price competitiveness, including the impact of the company’s recently launched price match program; and (5) the timing and impact of capital and SG&A investments in the P&L versus the timing of the realization of the benefits (including the insourcing of IT and replatforming of bestbuy.com).”

McCollam concluded, “Despite these first quarter financial pressures, the energy in the organization around the successful execution of our Renew Blue initiatives is inspiring. Our fourth quarter results and the actions that we have taken since then to begin rationalizing our infrastructure, have given the organization something that they have not had in a long time – pride in the outcome and belief in what is possible. Our fourth quarter results have also affirmed what Hubert shared at the November analyst day and what I knew was true when I joined the company: (1) Best Buy is the market leader in a highly fragmented and growing market; (2) we have a powerful platform from which to deliver a superior multi-channel shopping and service experience to our customers; (3) while already the 11th largest e-commerce retailer in the U.S., Best Buy is underpenetrated from a market share perspective and early investment and the momentum we have seen have validated that this is a significant growth opportunity; and (4) the runway to improve financial returns through increased online growth, enhanced retail execution, and extensive structural cost reductions is tremendous.”

Domestic Segment Fourth Quarter Results

Revenue

Domestic revenue of $12.55 billion declined 0.3% versus last year. This decline was driven by the loss of revenue from 49 big box stores that were closed earlier in the year, but was substantially offset by a positive 0.9% comparable store sales increase and incremental revenue from 126 additional Best Buy Mobile stand-alone stores. It is important to note, however, that comparable store sales in the quarter benefitted from an estimated 35 basis points due to a calendar shift in this year’s “pre-Super Bowl” sales from Q1 FY14 to Q4 FY13. Domestic online sales increased 11.2%, reaching a record $1.3 billion as momentum accelerated throughout the quarter. Highly effective “traffic-generating” marketing initiatives drove these better-than-expected results. From a merchandising perspective in the Domestic segment, strong growth in mobile phone, tablets/eReaders and appliances was partially offset by declines in gaming and digital imaging.

Gross Profit Rate

Adjusted (non-GAAP) Domestic gross profit rate was 22.4% (22.4% on a GAAP basis) versus 22.5% (22.3% on a GAAP basis) last year. This 10 basis point decrease is a net impact of two business drivers. The first, which represents a 40 basis point decrease, is higher promotional activity principally in home theater, that was partially offset by lower sales in gaming which sells at a lower gross profit rate. The second is a 30 basis point benefit from a periodic profit sharing payment that was earned by the company based on the long-term performance of the company’s externally managed extended service plan portfolio.

Selling, General and Administrative Expenses (“SG&A”)

Adjusted (non-GAAP) Domestic SG&A expenses were $2.07 billion ($2.08 billion on a GAAP basis) or 16.5% of revenue versus $1.90 billion ($1.91 billion on a GAAP basis) or 15.1% last year. The 140 basis point increase was primarily driven by (1) increased investments in advertising and other direct selling costs to drive in-store and online revenue; (2) a reversal of incentive compensation expense in the prior year that did not recur in Q4 FY13; (3) an increase in field incentive compensation and executive retention and transition costs; and (4) a year-overyear increase in legal-related reserves.

International Segment Fourth Quarter Results

Revenue

International revenue of $4.16 billion increased 2% versus $4.09 billion last year. This increase was driven by the positive impact of changes in foreign currency exchange rates, partially offset by 6.6% decline in comparable store sales. Positive comparable store sales in Europe were more than offset by declines in Canada and China. In Canada, overall industry softness drove the decline in comparable store sales. In China, however, increased competition from e-commerce and year-over-impacts from expired government stimulus programs in FY12 were the key drivers of the comparable store sales decline.

Gross Profit Rate

International gross profit rate was 23.4% versus 25.5% last year. This 210 basis points rate decline was primarily driven by a lower gross profit rate in Europe. In Europe, the decline was driven by a higher percentage of revenue coming from the wholesale channel, an unfavorable product mix, and greater promotional activity. The International segment’s gross profit rate was also negatively impacted by phone carrier and other periodic payments that were earned by the company in the prior year that did not recur in Q4 FY13.

SG&A

Adjusted (non-GAAP) International SG&A expenses were $791 million ($826 million on a GAAP basis) or 19.0% of revenue versus $782 million ($831 million on a GAAP basis) or 19.1% last year. This 10 basis point decrease was primarily driven by overall lower costs, partially offset by the negative impact of changes in foreign currency exchange rates.

Renew Blue Cost Reduction Initiatives

Over the last several weeks, the company enacted Phase One of its Renew Blue Cost reductions, which totaled $150 million in annualized savings and included an initial headcount reduction of approximately 400 people. These savings are being driven by (1) the discontinuation of non-core activities; (2) the take-out of management layers; and (3) various efficiency improvements, including the removal of organizational silos that have driven up costs and undermined accountability.

Non-Cash Impairments and Restructuring Charges

During Q4 FY13, the company recorded a pre-tax non-cash impairment charge of $822 million primarily to reflect the write-off of goodwill for Canada and China, as recent economic and competitive pressures contributed to a worse-than-expected fourth quarter performance and lowered long-term outlooks for both countries. The same factors that resulted in the goodwill impairments also led to higher than normal non-restructuring, non-cash asset impairments, which are included in the SG&A line and totaled $44 million (including $9 million related to Domestic segment asset impairments).

The company also recorded pre-tax restructuring charges totaling $203 million in Q4 FY13 primarily related to previously announced store closures in Canada and Europe in addition to severance charges associated with the Renew Blue SG&A cost reduction initiatives outlined above. Of this $203 million, approximately $140 million is expected to be paid out in cash primarily over the next two years.

Please see the table titled “Reconciliation of Non-GAAP Financial Measures” attached to this release for more detail.

Adjusted Free Cash Flow

Adjusted free cash flow FY13 was $965 million versus the most recently provided guidance of $500 million. This better-than-expected outcome was primarily driven by an aggressive inventory reduction plan and an intense focus on working capital and cash flow management initiatives that were both implemented after the company’s last financial press release, in addition to the impact of better-than-expected Q4 FY13 earnings.

The adjusted free cash flow excludes the impact of previously announced restructuring activities and includes the benefit from a change in restricted cash related to working capital. Please see the table titled “Consolidated Statement of Cash Flows” attached to this release for more detail.

Dividends

On December 31, 2012, the company paid a quarterly dividend of $0.17 per common share outstanding, or $57 million in the aggregate.

Conference Call

Best Buy is scheduled to conduct an earnings conference call at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) on March 1, 2013. A webcast of the call is expected to be available on its website at www.investors.bestbuy.com both live and after the call. A telephone replay is also available starting at approximately 12:00 p.m. Eastern Time (11:00 a.m. Central Time) on March 1 through March 15, 2013. The dial-in number for the replay is 800-406-7325 (domestic) or 303-590-3030 (international), and the access code is 4596731.

(1) Best Buy’s comparable store sales is comprised of revenue at stores, call centers, and websites operating for at least 14 full months as well as revenue related to other comparable sales channels. Relocated stores, as well as remodeled, expanded and downsized stores closed more than 14 days, are excluded from the comparable store sales calculation until at least 14 full months after reopening. Acquired stores and businesses are included in the comparable store sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of the comparable store sales percentage change attributable to the International segment excludes the effect of fluctuations in foreign currency exchange rates. The calculation of comparable store sales excludes the impact of the extra week of revenue in the first quarter of fiscal 2012, as well as revenue from discontinued operations. The method of calculating comparable store sales varies across the retail industry. As a result, Best Buy’s method of calculating comparable store sales may not be the same as other retailers’ methods. Online revenue is included in Best Buy’s same store sales calculation.

(2) The company defines adjusted gross profit, adjusted SG&A and adjusted operating income for the periods presented as its reported gross profit, SG&A and operating income for those periods calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”) adjusted to exclude the effects of restructuring charges, costs related to the purchase of CPW’s share of the Best Buy Mobile profit share agreement (“BBE transaction costs”), non-restructuring asset impairments and goodwill impairments. The inclusion of non-restructuring asset impairments represents a change from prior periods. In addition, the company defines adjusted net earnings and adjusted diluted earnings per share from continuing operations for the periods presented as its reported net earnings and diluted earnings per share from continuing operations calculated in accordance with GAAP adjusted to exclude the effects of the above referenced items, gains of sales of investments and the noncontrolling interest impact of restructuring charges, BBE transaction costs and the purchase of CPW’s share of the Best Buy Mobile profit share agreement. These non-GAAP financial measures provide investors with an understanding of the company’s gross profit, SG&A, operating income, net earnings, and diluted earnings per share adjusted to exclude the effect of the items described above. These non-GAAP financial measures assist investors in making a ready comparison of the company’s operating income, net earnings, and diluted earnings per share for its fiscal quarter and year ended February 2, 2013, against the company’s results for the respective prior-year periods and against third party estimates of the company’s diluted earnings per share for those periods that may not have included the effect of such items. Additionally, management uses these non-GAAP financial measures as an internal measure to analyze trends, allocate resources, and analyze underlying operating performance. This non-GAAP financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, GAAP financial measures and may differ from similar measures used by other companies. Please see “Reconciliation of Non-GAAP Financial Measures” attached to this release for more detail.

(3) The company defines adjusted return on invested capital (“ROIC”) as adjusted net operating profit after taxes divided by average invested capital for the periods presented (including both continuing and discontinued operations). Adjusted net operating profit after taxes is defined as our operating income for the periods presented calculated in accordance with GAAP adjusted to exclude the effects of: (i) operating lease interest; (ii) investment income; (iii) net earnings attributable to noncontrolling interests; (iv) income taxes; (v) all restructuring charges in costs of goods sold and operating expenses, goodwill and tradename impairments, and BBE transaction costs; and (vi) the noncontrolling interest impact of the restructuring charges, Best Buy Europe transaction costs and the purchase of CPW’s share of the Best Buy Mobile profit share agreement. Average invested capital is defined as the average of our total assets for the trailing four quarters in relation to the periods presented adjusted to: (i) exclude excess cash and cash equivalent and short-term investments; (ii) include capitalized operating lease obligations calculated using a multiple of eight times rental expenses; (iii) exclude our total liabilities, less our outstanding debt; and (iv) exclude equity of noncontrolling interests. This non-GAAP financial measure provides investors with a supplemental measure to evaluate how effectively the company is investing its capital and deploying its assets. Management uses this non-GAAP financial measure to assist in allocating resources, and trends in the measure may fluctuate over time as management balances long-term initiatives with possible short-term impacts. Our ROIC calculation utilizes total operations in order to provide a measure that includes the results of and capital invested in all operations, including those businesses that are no longer continuing operations. This non-GAAP financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, GAAP financial measures and may differ from similar measures used by other companies. Please see “Reconciliation of Non-GAAP Financial Measures” attached to this release for more detail.

(4) Best Buy defines free cash flow as total cash provided by (used in) operating activities less additions to property and equipment. This non-GAAP financial measure assists investors in making a ready comparison of the company’s free cash flow results for the year ending February 2, 2013, against the company’s results for the respective prior-year periods and against management’s previously provided expectations. The company’s free cash flow excludes the impact of previously announced restructuring activities (net of taxes) and includes a benefit from a change in restricted cash related to working capital, which is included within investing activities on the condensed consolidated statements of cash flows. This non-GAAP financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, GAAP financial measures and may differ from similar measures used by other companies. Please see “Condensed Consolidated Statements of Cash Flows” attached to this release for more detail.

Forward-Looking and Cautionary Statements:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management’s current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as “anticipate,” “believe,” ”assume,” “estimate,” “expect,” “intend,” “project,” “guidance,” “plan,” “outlook,” and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions, changes in consumer preferences, credit market constraints, acquisitions and development of new businesses, divestitures, product availability, sales volumes, pricing actions and promotional activities of competitors, profit margins, weather, natural or man-made disasters, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate locations, the company’s ability to react to a disaster recovery situation, the impact of labor markets and new product introductions on overall profitability, failure to achieve anticipated benefits of announced transactions, integration challenges relating to new ventures and unanticipated costs associated with previously announced or future restructuring activities. A further list and description of these risks, uncertainties and other matters can be found in the company’s annual report and other reports filed from time to time with the Securities and Exchange Commission, including, but not limited to, Best Buy’s Annual Report on Form 10-K filed with the SEC on May 1, 2012. Best Buy cautions that the foregoing list of important factors is not complete, and any forward-looking statements speak only as of the date they are made, and Best Buy assumes no obligation to update any forward-looking statement that it may make.

Investor Contacts:

Bill Seymour – Vice President, Investor Relations
(612) 291-6122
bill.seymour@bestbuy.com

Mollie O’Brien – Director, Investor Relations
(612) 291-7735
mollie.obrien@bestbuy.com

Media Contact:

Amy von Walter – Senior Director, Public Relations
(612) 291-4490
amy.vonwalter@bestbuy.com