GameStop Corp. (NYSE: GME), the world’s largest video game and entertainment software retailer, today announced its capital allocation strategy. GameStop, one of the world’s fastest growing retailers with a unique business model generating outstanding free cash flow, today announced its 2010 Capital Allocation Plan. The plan will provide ample investment capital for continued aggressive new store expansion worldwide and allow GameStop to enhance shareholder value through a $300 million share repurchase program approved by its Board of Directors today. Purchases will be executed according to market conditions. The impact of the entire $300 million buyback at today’s share price would result in accretion to EPS of approximately 10%. Over the past three years, GameStop has generated sufficient cash flow to fund the opening of almost 2,000 new stores, redeemed $500 million dollars in long-term debt, and completed the acquisition of Micromania for $580 million. The company believes its cash flow will remain at or above existing levels for the year ahead and believes the video game industry and GameStop will continue to grow in the years to come. The company intends to continue its aggressive roll-out strategy of opening new stores worldwide, exploring acquisition opportunities in retail or in technologies related to the video game business, and implement the capital allocation plan as follows: Estimated Cash From Operations $600 million 400 new stores and other capital expenditures $200 million Reserve for acquisition activity $100 million Share repurchase program $300 million The company expects to end fiscal year 2009 with $700 million of cash on hand and, assuming similar levels of cash from operations as generated in fiscal year 2009, the company should end fiscal 2010 with $700 million of cash after having executed the program above. Daniel DeMatteo, Chief Executive Officer, stated, “As GameStop expects to generate significant excess cash over the next several years, we are pleased that the Board has authorized this program as our equity represents a very attractive investment opportunity. This capital allocation plan underscores the financial strength and long-term confidence of our company and returns significant capital to shareholders even as we continue to expand worldwide.” The capital allocation program does not have any specific limitations and may be suspended or terminated at any time.

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