Founder And Largest Shareholder Richard Schulze Submits Proposal To Acquire Best Buy For $24.00 To $26.00 Per Share

Richard Schulze, Founder and former Chairman of Best Buy Co., Inc. (NYSE: BBY), today submitted a written proposal to the Best Buy Board of Directors to acquire all of the outstanding shares of the company that he does not already own for a price of $24.00 to $26.00 per share in cash. The purchase price, which is based on current public information and is subject to due diligence, represents a premium of 36% to 47% to Best Buy's closing stock price of $17.64 on August 3, 2012.

Schulze is Best Buy’s largest shareholder, controlling 20.1% of Best Buy shares. He has developed a business plan that addresses the many challenges Best Buy faces and has held discussions with leading private equity firms interested in participating in the acquisition. Based on these discussions, he plans to finance the proposed acquisition through a combination of investments from the private equity firms, reinvestment of approximately $1 billion of his own equity, and debt financing. Credit Suisse, Schulze’s financial advisor, has informed him it is highly confident it can arrange the necessary debt financing. Schulze has also held discussions with many highly regarded former Best Buy executives, including former CEO Brad Anderson and former President and COO Allen Lenzmeier, interested in rejoining the company.

Schulze said, “There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways. After assessing all of my options, it is my strong belief that Best Buy's best chance for renewed success is to implement with urgency the necessary changes as a private company. It is my strong preference to pursue an acquisition cooperatively with the Best Buy Board of Directors. I have made repeated requests to the Board for several weeks to provide me with due diligence information and the consent to form a group required under Minnesota law, both of which will be necessary to reach a definitive agreement. While I preferred a private negotiation, time is of the essence. I am deeply concerned that further delay and indecision will cause additional loss of both value and talented leaders who are now uncertain of the company’s future. In order to move forward, I am today submitting a concrete proposal for the Board to consider and publicly disclosing it consistent with my obligations as a 13D filer.”

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