1. Best Buy Co. Inc. (BBY) $47.46 Wednesday, April 11, 2007

2. Best Buy Co. Inc. Index Membership – NYSE – S&P 500 – S&P Composite 1500 Index Sector – Services Industry – Electronic Stores

3. Best Buy Co., Inc. is an innovative Fortune 100 growth company and North America No. 1 consumer electronics retailer and entertainment software which operates more than 1,100 stores in the U.S., Canada, and China. Based in Minneapolis, Minnesota Founded in 1966 – 128,000 Employees – 2,000 Stockholders Best Buy Co. Inc.

4. Best Buy Operations Operate retail stores and commercial websites under the brand names: –Best Buy Stores Consumer Electronics –Future Shop Canadian Based Electronic Retail Store –Magnolia Audio Video High-end audio and video products and services –Geek Squad 24-Hour Computer support

5. Overall Store Development Best Buy (US): 771 Best Buy (Canada): 44 Future Shop (Canada): 119 Magnolia Audio Stores: 20 Pacific Sales Showroom: 14 Five Star Stores (China): 131

6. Best Buy Product Groups Consumer Electronic – Largest Product Group for 2006 – Video Products, Audio Products, and Services Home Office – Notebook, Desktop, and Services Entertainment Software – DVDs, Video Games, Software, and CDs Appliances – Refrigerators, microwaves, washers & dryers

7. Product Groups’ Performance

8. Acquisitions 2001 –Magnolia Audio and Video –Future Shop Ltd. –Musicland Stores Corp. 2002 –Geek Squad 2003 –Echo Networks Inc.

9. Acquisitions (cont.) 2006 –Assets of AV Audiovisions, Inc. –Howell & Associates –Jiangsu Five Star Appliance Co. –Pacific Sales Kitchen and Bath Centers, Inc. 2007 –Speakeasy Inc.

10. Acquisitions

11. Competitors Online Retail – Amazon Regional Discount Store Wholesale Clubs – Sam’s Club, Costco Video Rental Stores – Blockbuster, Netflix Specialty Retail Store – Circuit City, Comp USA, Lowe’s

12. Best Buy Vs. Circuit City

13. Financial Statistics Current Ratio: 1.44 –Capable of paying off obligations Quick Ratio: 0.80 –Suggests that Best Buy holds a lot of inventory; retail store Inventory Turnover: 7.89 –Days in inventory: 46.26 days Total Debt/Equity: 0.105 Beta: 1.8

14. Financial Statistics (cont.) ROA: 9.82% –Management is using and selecting assets efficiently ROE: 24.04% –Suggests possible stock price increase TIE: 58.36 –Likelihood of bankruptcy is low Profit Margin: 3.83%

15. Stock Performance FY 06 return on invested capital was 18.7%, above the Computer and Electronics Trail sub-industry (16.7%) and the Consumer Discretionary sector (5.3%) –Superior gross margins –Reduction in the cost of new store openings –Improved sales productivity at new stores

16. Stock Performance

17. Recent Company News March 27, 2007: Best Buy Acquires Speakeasy Inc. April 4, 2007: Best Buy to offer Apple Computers in 200 stores April 5, 2007: Best Buy Announces Regular Quarterly Cash Dividend Raise

18. Risk Factors Competition –Numerous rivals & strong price competition Reliance –Reliance on suppliers –Rely on 4th Quarter Earnings Economy –Sharp decline in economic climate resulting in declined consumer confidence

19. Best Buy Goals International Growth –Canada & China Build small business capabilities –Best Buy for Business –Training 900 Microsoft Employees Grow organically –Plan on establishing 90 new stores in North America in 2007

20. Conclusion Buy No. 1 specialty retailer of consumer electronics –18% market share of the consumer electronics retailer market in US Potential growth through subsidiaries High-quality Customer Service Potential increase in sales