lehman brothers retail conference

Lehman BrothersRetail Conference

April 29, 2008

Brad AndersonVice Chairman and Chief Executive Officer

Safe Harbor

Cautionary Statement Pursuant to the Private Securities Litigation Reform Act of 1995

This presentation may contain forward-looking statements, which are subject to risk and uncertainty. A variety of factors could cause our actual results to differ materially from the anticipated results expressed in such forward-looking statements, including, among other things, factors listed in our Annual Report on Form 10-K filed with the SEC on 5/02/07. That 10-K describes additional factors that could cause actual results to differ materially from those contemplated by the forward-looking statements made in this presentation.

What We Believe….• Technology is increasingly important in the lives of our

customersComplexity is a reality & opportunityInspiring the possible is an opportunity

• A growth model rooted in employee insights is…QuickerLess riskyHard to doHarder to copy

• The customer demand and our philosophy have global applications

• $40 billion of scale at the command of local insights = options for greater growth

Assets at the Command of our Leaders

I need a wireless network

I would like a home theater system

I want to link my Xbox to my computer

Can I have a movie Screen in my house?

Who can I get HDTV from?

I need a GPS for my car

When will all TV’s be digital?

What is 7.1 surround sound?

How many minutes do I need on my cell phone plan?

Can I listen to my iPod through my car speakers?

How do I get rid of Spyware on my computer?

What appliances help me save on energy costs?

What is the difference between Plasma and LCD?

What is HDMI, and do I need it?

Sean SkelleySenior Vice President, Services

Services – Who We Are

+ Services

6% of Domestic Revenues

=

Services – Positioned for Success

Dominant Product Seller+

Strong Technology Service Brand

Services – Mix of Domestic

* Geek Squad included Appliances installation business

FY06 FY07 FY08

* Services as % of Best Buy Domestic Revenues

>2.5%3%

2%

4%

2%<2.5%

Computing Services – In-StoreNew PC (50%)

Attach Rate

Unit Growth

ASP

Overall, we expect Computing Services to continue to grow despite product growth deceleration.

New offerings may increase attachment rates, expand Old PC repair business, and maintain ASPs.

Revs

Old PC (50%)

n/a

Home Theater ServiceNew TV (>99%)

Attach Rate

Unit Growth

ASP

Revs

Old TV (<1%)

Home Theater business continues to grow in units, but faces pressure due to declining product ASPs.

Future growth expected through new offers (such as Calibration) and Old TV repair

The Future

• Services’ growth model is rooted in the interaction with the customer and empowerment of our agents to meet their needs on a local basis.