April 28, 2008

Circuit City Stores, Inc.
9950 Mayland Drive
Richmond, Virginia  23233
Attention:  Philip J. Schoonover

Dear Phil:

As you are aware, funds managed by HBK Capital Management beneficially own
approximately 9% of the issued and outstanding common stock of Circuit City
Stores, Inc. ("Circuit City" or the "Company"). HBK's funds also beneficially
own approximately 8% of the class A common stock of Blockbuster Inc.
("Blockbuster") and approximately 5% of the class B common stock of Blockbuster.
Since the public announcement of Blockbuster's proposal to acquire Circuit City,
we have analyzed the indicated transaction extensively and we have concluded
that the combination of the two companies would create significant value for all
shareholders.

We are disappointed by the announcement on April 14, 2008 that Circuit City's
Board will not allow a bona fide bidder interested in acquiring Circuit City to
perform due diligence. We believe that Blockbuster should be allowed to perform
due diligence for the purpose of making a bid for Circuit City.

While we can understand the Board's desire to become comfortable with how
Blockbuster would specifically finance this transaction, this offer should be
taken seriously and Circuit City should immediately provide access to due
diligence information and commence good-faith negotiations for the following
reasons:

          o    We believe that over $300 million per year in increased EBITDA
               could be realized following an acquisition by maximizing cost
               savings between Circuit City and Blockbuster;

          o    Blockbuster is not a competitor of Circuit City so providing such
               information poses no competitive threat. Even if a transaction is
               not consummated and Blockbuster enters the Consumer Electronics
               business, we see little downside to Circuit City's business by
               allowing Blockbuster to conduct full due diligence. Certainly,
               the upside to shareholders of a possible deal greatly outweighs
               the risks;

          o    Blockbuster's Board fully supports the offer;

          o    Cooperating with Blockbuster's request to perform "a very short
               due diligence process immediately" is necessary to answer the
               very transaction financing questions the Company has cited in its
               effort to thwart Blockbuster;

          o    Blockbuster could raise a significant portion of the financing
               from Circuit City's own balance sheet, including, but not limited
               to, excess cash on hand, a multi-




               million dollar tax refund due to the Company this summer and
               proceeds from a potential sale of the Company's international
               InterTAN subsidiary;

          o    We believe a majority of Circuit City's shareholders would be in
               favor of a transaction that provides liquidity at a meaningful
               premium to the Company's current share price;

          o    James Keyes, Blockbuster's Chairman and CEO, stated in a letter
               to you that the Blockbuster offer is "conditioned upon timely
               commencement of the due diligence process," and has subsequently
               indicated to the media that Blockbuster is unlikely to pursue a
               hostile bid for Circuit City; and

          o    If Blockbuster withdraws its offer because of a lack of
               cooperation by Circuit City's Board, we believe Circuit City
               shareholders will be immediately and substantially damaged.

For the reasons discussed above, we urge the Board to quickly allow Blockbuster
access to due diligence materials and to actively engage in negotiations with
Blockbuster so they can make a definitive proposal. We understand that Carl
Icahn, or an affiliate, would finance the transaction. HBK might also be
prepared to provide financing for such a transaction, as we are very optimistic
about the future prospects of a combined company.

In closing, while we believe that an acquisition at a substantial premium to
today's share price is in the best interest of Circuit City's shareholders,
there also may be other parties interested in acquiring Circuit City or entering
into a material transaction with Circuit City that may provide even greater
value to shareholders. As a result, we urge the Board to take the necessary
steps to create a competitive bidding process in order to maximize shareholder
value.


Sincerely,




HBK Capital Management





Cc:      Circuit City Board Members