AMARILLO, Texas, June 15 /PRNewswire/ -- Hastings Entertainment, Inc. (Nasdaq: HAST - news), a leading multimedia entertainment superstore and Internet retailer today announced its intention to acquire three Arkansas stores from Family Entertainment Superstores. Subject to completion of due diligence, these locations will be converted to the Hastings format with planned grand openings of one store per month over the next three months.

Arkansas continues to be one of Hastings most profitable states with this acquisition increasing Hastings' presence in Arkansas to 11 stores. The stores to be acquired are located in Mountain Home, Batesville, and Springdale and bring Hastings to a total store count of 141 superstores in 22 states.

Hastings Entertainment serves primarily medium to smaller-sized markets across America. All three stores are located in the dominant shopping areas of the respective towns and will have the following features:

    *  Customized inventory in multiple entertainment formats, including about
       20,000 book titles, 15,000 music selections, 6,000 videocassettes and
       video games, 2000 DVD-format titles, 2,000 periodicals, 1500 software
       titles, and 3,000 complementary products, including clothing, greeting
       cards and stationery products, for sale at discounted prices;

    *  Over 10,000 videocassettes, video games and DVDs available for rent;

    *  Extensive children's product section, including free rentals on
       children's videos and weekly StoryTime;

    *  Employment for about 25 to 30 employees, primarily from the market
       where the store operates.

    *  Hastings' "Hardback Cafe" at each store location.

``Arkansas continues to be a great State for us. The addition of these three markets complements our regional strength as a retailer allowing Hastings to bring a wide range of entertainment products in a single location and reflects our commitment to satisfying the many requests customers have made for a Hastings store in these markets,'' said John H. Marmaduke, Chairman and Chief Executive Officer. ``Because we believe that our stores should be fun and informative gathering places for our customers to shop, we offer such amenities as a coffee shop, comfortable chairs for reading, CD listening stations, video game preview stations, interactive information kiosks, telephones for free local calls, children's play areas and in-store promotional events.''

Marmaduke continued, ``All three markets are ideal for the Hastings' model and should reach profitability quickly because they are in states and locations where the Company is well recognized.''

Hastings also operates www.gohastings.com , an e-commerce Internet Web site that makes available to our customers new and used entertainment products and unique, contemporary gifts and toys. The site features exceptional product and pricing offers.

Safe Harbor Statement

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. A number of factors could cause actual results, performance, achievements of the Company, or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the competitive environment in the retail industries within which the Company operates in general and in the Company's specific market area; inflation; economic conditions in general and in the Company's specific market areas; the number of store openings and closings; the profitability of certain product lines, capital expenditures and future liquidity; liability and other claims asserted against the Company. In addition, such forward-looking statements are necessarily dependent upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included herein do not purport to be predictions of future events or circumstances and may not be realized. Given these uncertainties, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligations to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.