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GameStop Corp. Revises Earnings Expectations; Revised Full Year Earnings Growth Projected at 90%

GRAPEVINE, Texas--(BUSINESS WIRE)--Dec. 18, 2002--GameStop Corp. (NYSE:GME), the nation's largest video game and entertainment software specialty retailer, today revised earnings expectations based on business trends to date through the holiday season.

Based on these trends, we are now forecasting comparable store sales to be between -4% and -6% for the fourth quarter, with quarterly earnings per share between $0.48 and $0.52 compared to earlier forecasted comparable store sales of between 8% and 12%, and earnings per share of between $0.62 and $0.68. This brings full year earnings per share guidance to between $0.83 and $0.87, which is within our original guidance issued at the beginning of the fiscal year.

The combination of having to exceed our own 59% comparable stores sales from the prior year, coupled with the fact that there are six fewer shopping days in the season, and the effects of a weak economy, have resulted in a revision of our quarterly expectations.

Despite the revised forecast, we are now projecting total sales growth for the year of between 20% and 22%, comparable store sales for the year between 12% and 14%, with annual earnings growth of approximately 90% over the previous year.

About GameStop Corp.

Headquartered in Grapevine, Texas, GameStop Corp. (NYSE:GME), is the nation's largest video game and entertainment software specialty retailer. The company operates over 1,200 retail stores throughout 49 states and Puerto Rico, under the GameStop(R), Babbage's(R), Software Etc.(tm) and FuncoLand(R) brands. In addition, the company owns a commerce-enabled Web property, GameStop.com, and Game Informer magazine, a leading video and computer game publication.

GameStop Corp. sells the most popular new software, hardware and game accessories for the PC and next generation video game systems from Sony, Nintendo, and Microsoft, and is also the industry's largest reseller of used video games. In addition, the company sells computer and video game magazines and strategy guides, action figures, and other related merchandise to more than 30 million customers.

¶ Barnes and Noble Inc. (NYSE:BKS), the world's largest bookseller, has approximately a 60 percent interest in GameStop. General information on GameStop Corp. can be obtained via the Internet by visiting the company's corporate Web site: http://www.gamestop.com/investor-relations.

SAFE HARBOR

This press release (including any attached schedules) contains "forward-looking statements." GameStop Corp. is including this statement for the express purpose of availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements. These forward-looking statements are based on currently available information and represent the beliefs of the management of the company. These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, general economic and market conditions, decreased consumer demand for the company's products, possible disruptions in the company's computer or telephone systems, possible work stoppages or increases in labor costs, possible increases in shipping rates or interruptions in shipping service, effects of competition, possible disruptions or delays in the opening of new stores or the inability to obtain suitable sites for new stores, higher than anticipated store closing or relocation costs, higher interest rates, the performance of the company's online and other initiatives, the successful integration of acquired businesses, unanticipated increases in merchandise or occupancy costs, unanticipated adverse litigation results or effects, product shortages, and other factors which may be outside of the company's control. Please refer to the company's reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially.

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CONTACT: GameStop Corp., Grapevine
Media Contact:
Lori M. Milovich, 817/424-2130
Director, Public & Investor Relations
or
Investor Contact:
David W. Carlson, 817/424-2130
Executive Vice President & Chief Financial Officer