Exhibit 99.1

NEWS RELEASE

Hastings
Entertainment, Inc. CONTACT: Dan Crow            PR04-111
Vice President and Chief Financial Officer
(806) 351-2300, ext. 6000
www.gohastings.com

Hastings Entertainment, Inc. Reports Pre-Tax Loss of $0.25 per Share
for 3Q 2004 Compared to $0.34 per Share for 3Q 2003
Raising Guidance for Fiscal Year 2004

Pre-Tax Income for Year to Date 2004 of $0.07 per Diluted Share Compared to a
Pre-Tax Loss of $0.41 per Share for 2003

AMARILLO, Texas, November 22, 2004—Hastings Entertainment, Inc. (NASDAQ: HAST), a leading multimedia entertainment superstore retailer, today reported results for the three and nine months ended October 31, 2004. Net loss for the third quarter of fiscal 2004 was approximately $1.8 million, or $0.15 per diluted share, compared to a net loss of approximately $3.8 million, or $0.34 per diluted share for the third quarter of fiscal 2003. For the nine months, net income was approximately $0.5 million, or $0.05 per diluted share in fiscal 2004 compared to a net loss of approximately $4.7 million, or $0.41 per share for fiscal 2003.

Pre-tax loss was approximately $2.8 million, or $0.25 per share, for the three months ended October 31, 2004 and pre-tax income was approximately $0.9 million, or $0.07 per diluted share, for the nine months ended October 31, 2004. This compares with pre-tax losses of approximately $3.8 million and $4.7 million, or $0.34 and $0.41 per share, for the three and nine months ended October 31, 2003, respectively.

Below is a tabular presentation comparing and reconciling net income (loss) and pre-tax income (loss), and related per share amounts, for the three and nine months ended October 31, 2004 and 2003 (dollars in thousands, except per share amounts):

	Three Months Ended October 31,						Nine Months Ended October 31,
	2004			2003			2004			2003
Pre-tax income (loss)	$	(2,825	)	$	(3,810	)	$	871		$	(4,690	)
Income tax (expense) benefit		1,062			—			(322	)		—
Net income (loss)	$	(1,763	)	$	(3,810	)	$	549		$	(4,690	)
Per basic share amounts:
Pre-tax income (loss)	$	(0.25	)	$	(0.34	)	$	0.08		$	(0.41	)
Income tax (expense) benefit		0.10			—			(0.03	)		—
Net income (loss)	$	(0.15	)	$	(0.34	)	$	0.05		$	(0.41	)
Per diluted share amounts:
Pre-tax income (loss)	$	(0.25	)	$	(0.34	)	$	0.07		$	(0.41	)
Income tax (expense) benefit		0.10			—			(0.02	)		—
Net income (loss)	$	(0.15	)	$	(0.34	)	$	0.05		$	(0.41	)

“We are pleased with our overall results for the third quarter,” said John H. Marmaduke, Chairman and Chief Executive Officer. “Rental revenues continue to reflect weaker sales industry-wide, and the high television viewership of the Summer Olympics had a greater impact than we had forecasted internally. We also

continued to incur higher distributions costs, which are a component of gross margin, as a result of the conversion to our new warehouse management system, previously disclosed in our earnings release dated August 23, 2004. In spite of these challenges we were able to reduce our third quarter pre-tax loss by approximately $1.0 million over the prior year.”

Financial Results for the Third Quarter of Fiscal Year 2004

Revenues. Total revenues for the third quarter increased $6.7 million, or 6.0%, to $119.5 million compared to $112.8 million for the third quarter of fiscal 2003, resulting principally from an increase of 3.8% in comparable-store revenues (“Comps”). The following is a summary of our revenue results (dollars in thousands):

	Three Months Ended October 31,
	2004					2003					Increase/(Decrease)
			Percent					Percent
	Revenues		of Total			Revenues		of Total			Dollar			Percent
Merchandise revenue	$	96,257		80.5	%	$	88,901		78.8	%	$	7,356			8.3	%
Rental revenue		23,322		19.5	%		23,942		21.2	%		(620	)		-2.6	%
Total revenues	$	119,579		100.0	%	$	112,843		100.0	%	$	6,736			6.0	%

Comparable-store revenues:
Merchandise	6.6	%
Rental	-5.9	%
Total	3.8	%

The higher merchandise Comps were primarily the result of Comp increases in our video for sale and video game categories driven by strong title releases during the quarter. Below is a summary of the Comp results for our major merchandise categories:

	Three Months Ended October 31,
	2004			2003
Music		-0.7	%		-6.3	%
Books		1.9	%		0.8	%
Video for sale		9.8	%		18.5	%
Video games		51.2	%		30.8	%
Sidelines		2.8	%		21.2	%

Our decrease in rental Comps reflects a continuing shift to purchase industry-wide, an area we have emphasized. This rental Comp does not include video for sale and video game sell-through revenues, as do most of our ‘rentailing’ competitors. On a comparable basis with our competitors, our total ‘video’ Comp for rental revenues combined with video for sale and video game sell-through revenues was 6.8% for the third quarter.

Gross Profit. For the third quarter, total gross profit dollars increased approximately $1.8 million, or 4.6%, to $40.2 million from $38.4 million for the same period last year, primarily as a result of higher revenues and increases in merchandise margin rates. As a percentage of total revenues, gross profit decreased slightly to 33.6% for the quarter compared to 34.0% for the same quarter in the prior year primarily driven by lower rental margin rates.

Selling, General and Administrative expenses (“SG&A”). SG&A increased approximately $0.8 million to $42.5 million compared to $41.7 million principally from higher occupancy costs associated with the operation of a greater number of new, expanded and relocated superstores. As a percentage of total revenues, SG&A decreased 140 basis points to 35.5% for the current quarter compared to 36.9% for the same quarter in the prior year. This decrease was primarily the result of lower net advertising costs along with increased store labor productivity as a percentage of total revenues for the current quarter compared to the same period in the prior year.

Financial Results for the Nine Months Ended October 31, 2004

Revenues. Total revenues for the first nine months of fiscal 2004 increased $23.8 million, or 6.9%, to $368.9 million compared to $345.1 million for the same period in the prior year, resulting principally from an increase of 5.3% in comparable-store revenues (“Comps”). The following is a summary of our revenue results (dollars in thousands):

	Nine Months Ended October 31,
	2004					2003					Increase/(Decrease)
			Percent					Percent
	Revenues		of Total			Revenues		of Total			Dollar			Percent
Merchandise revenue	$	294,755		79.9	%	$	269,904		78.2	%	$	24,851			9.2	%
Rental revenue		74,173		20.1	%		75,173		21.8	%		(1,000	)		-1.3	%
Total revenues	$	368,928		100.0	%	$	345,077		100.0	%	$	23,851			6.9	%

Comparable-store revenues:
Merchandise	8.0	%
Rental	-3.8	%
Total	5.3	%

The higher merchandise Comps were primarily the result of increases in the following major categories:

	Nine Months Ended October 31,
	2004			2003
Music		3.4	%		-10.9	%
Books		2.7	%		-1.1	%
Video for sale		19.9	%		18.5	%
Video games		20.7	%		60.7	%
Sidelines		3.2	%		7.8	%

Our video Comp increase, including the rental and sell-through revenues from all video and video game products, was 7.8% for the nine months ended October 31, 2004.

Gross Profit. For the current nine months, total gross profit dollars increased approximately $11.1 million, or 9.4%, to $128.4 million from $117.3 million for the same period last year, primarily as a result of higher revenues and increases in merchandise margin rates. As a percentage of total revenues, gross profit increased to 34.8% for the nine months ended October 31, 2004 compared to 34.0% for the same period in the prior year.

Selling, General and Administrative expenses (“SG&A”). SG&A increased approximately $5.6 million to $126.1 million for the current nine month period compared to $120.5 million for the same period in the prior year, due primarily to higher human resource and occupancy costs associated with the operation of a greater number of new, expanded and relocated superstores. As a percentage of total revenues, SG&A decreased to 34.2% for the nine months ended October 31, 2004 compared to 34.9% for the nine months ended October 31, 2003.

Stock Repurchase

On September 18, 2001, we announced a stock repurchase program of up to $5.0 million of our common stock. During the third quarter of fiscal year 2004, we purchased a total of 76,600 shares at a cost of approximately $452,000, or $5.90 per share. As of October 31, 2004, a total of 937,023 shares had been purchased under the program at a cost of approximately $4.7 million, for an average cost of $4.99 per share.

Fiscal Year 2004 Guidance

“In our press release dated August 23, 2004, we reaffirmed our guidance of $0.80 to $0.85 per diluted share on a pre-tax basis and $0.50 to $0.53 per share on a diluted net income basis,” said Dan Crow, Vice President and Chief Financial Officer. “Our performance for the third quarter exceeded our internal forecast, which is the basis for our guidance. Consequently, we are raising our guidance for the fiscal year ending January 31, 2005 to a range of $0.90 to $0.95 per diluted share on a pre-tax income basis and a range of $0.55 to $0.58 per share on a diluted net income basis.”

Store Activity

Since August 23, 2004, which is the date of our last earnings release, we have had the following superstore activity:

				Selling Square
Community	Type	Population		Footage		Date Opened
Meridian, ID	New		35,000		17,900		9/27/2004
Helena, MT	Relocation		26,000		20,700		8/27/2004
Manhattan, KS	Relocation		38,000		24,300		9/18/2004

All of our new, remodeled, relocated and expanded stores are built with Hastings’ 3-Across store format that enables us to merchandise more product, provide better customer service, satisfy a more diverse customer base and promote more logical product adjacencies for improved customer traffic flow.

2005 Annual Meeting of Shareholders

The Annual Meeting of Shareholders of Hastings Entertainment, Inc. has been scheduled for June 8, 2005. Notice of the meeting, including location and other pertinent information, will be mailed on or around May 16, 2005.

Safe Harbor Statement

Certain written and oral statements set forth above or made by Hastings or with the approval of an authorized executive officer of the Company constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, the words “believe,” “expect,” “intend,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements which are not necessarily historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements regarding our general guidance for fiscal year 2004, are forward-looking statements. Such statements are based upon Company management’s current estimates, assumptions and expectations, which are based on information available at the time of this disclosure, and are subject to a number of factors and uncertainties, including, but not limited to, our inability to attain such estimates, assumptions and expectations, a downturn in market conditions in any industry, including the current economic state of retailing (relating to the products we inventory, sell or rent) and the effects of or changes in economic conditions in the U.S. or the markets in which we operate. We undertake no obligation to affirm, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Hastings

Founded in 1968, Hastings Entertainment, Inc. is a leading multimedia entertainment retailer. We operate entertainment superstores that sell and rent various home entertainment products, including books, music, software, periodicals, new and used CDs, DVDs, video games and videocassettes, video game consoles and DVD players. We currently operate 152 superstores, averaging approximately 20,000 square feet, primarily in small to medium-sized markets in 20 states, primarily in the Western and Midwestern United States.

Hastings also operates an e-commerce Internet Web site that makes available to our customers new and used entertainment products, and unique, contemporary gifts. The Investor Relations and Corporate Governance sections of our Web site contain corporate, board of director and management information, press releases, a link to request financial and other literature and access to filings with the Securities and Exchange Commission, which include officer certifications filed as exhibits to interim and annual filings.

Consolidated Balance Sheets
(Dollars in thousands)

	October 31,			October 31,			January 31,
	2004			2003			2004
	(unaudited)			(unaudited)
Assets
Current assets
Cash	$	7,081		$	3,566		$	7,124
Merchandise inventory		180,664			153,252			138,552
Income tax receivable		131			539			511
Deferred income taxes, current		4,657			—			1,779
Prepaid expenses and other current assets		6,144			5,705			6,585
Total current assets		198,677			163,062			154,551
Property, equipment and rental assets, net		82,172			78,237			79,633
Deferred income taxes, net of valuation allowance at October 31, 2003		—			1,036			1,246
Intangible assets, net		564			652			630
Other assets		16			189			188
Total assets	$	281,429		$	243,176		$	236,248
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities on capital lease obligations	$	237		$	218		$	221
Trade accounts payable		102,381			82,915			82,072
Accrued expenses and other current liabilities		30,215			30,758			34,308
Total current liabilities		132,833			113,891			116,601
Long-term debt, excluding current maturities		56,906			51,479			29,623
Deferred income taxes		1,886			—			—
Other liabilities		2,515			3,315			3,031
Commitments and contingencies		—			—			—
Shareholders’ equity:
Preferred stock		—			—			—
Common stock		119			119			119
Additional paid-in capital		36,295			36,635			36,598
Retained earnings		53,558			40,568			53,009
Treasury stock, at cost		(2,683	)		(2,831	)		(2,733	)
Total shareholders’ equity		87,289			74,491			86,993
Total liabilities and shareholders’ equity	$	281,429		$	243,176		$	236,248

Consolidated Statements of Operations (unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2004			2003			2004			2003
Merchandise revenue	$	96,257		$	88,901		$	294,755		$	269,904
Rental revenue		23,322			23,942			74,173			75,173
Total revenues		119,579			112,843			368,928			345,077
Merchandise cost of revenue		70,387			65,774			211,710			200,029
Rental cost of revenue		9,028			8,668			28,796			27,708
Total cost of revenues		79,415			74,442			240,506			227,737
Gross profit		40,164			38,401			128,422			117,340
Selling, general and administrative expenses		42,480			41,684			126,070			120,449
Pre-opening expenses		26			53			360			234
Operating income (loss)		(2,342	)		(3,336	)		1,992			(3,343	)
Other income (expense):
Interest expense		(539	)		(547	)		(1,353	)		(1,579	)
Other, net		56			73			232			232
Income (loss) before income taxes		(2,825	)		(3,810	)		871			(4,690	)
Income tax expense (benefit)		(1,062	)		—			322			—
Net income (loss)	$	(1,763	)	$	(3,810	)	$	549		$	(4,690	)
Basic income (loss) per share	$	(0.15	)	$	(0.34	)	$	0.05		$	(0.41	)
Diluted income (loss) per share	$	(0.15	)	$	(0.34	)	$	0.05		$	(0.41	)
Weighted-average common shares outstanding:
Basic		11,421			11,317			11,400			11,319
Dilutive effect of stock options		—			—			519			—
Diluted		11,421			11,317			11,919			11,319

Consolidated Statements of Cash Flows (unaudited)
(Dollars in thousands)

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2004			2003			2004			2003
Cash flows from operating activities:
Net income (loss)	$	(1,763	)	$	(3,810	)	$	549		$	(4,690	)
Adjustments to reconcile net income (loss) to net cash provided by operations
Rental asset depreciation expense		5,676			4,860			16,668			14,396
Property and equipment depreciation expense		5,097			4,731			14,968			14,000
Amortization expense		22			22			66			65
Loss on rental assets, lost, stolen and defective		1,179			966			3,623			3,237
Loss on disposal of other assets		196			162			665			802
Deferred income taxes		358			—			254			—
Non-cash compensation		—			—			60			90
Changes in operating assets and liabilities:
Merchandise inventory		(28,834	)		(12,576	)		(36,629	)		(1,796	)
Prepaid expenses and other current assets		1,488			125			441			264
Trade accounts payable		29,323			15,098			20,309			7,203
Accrued expenses and other liabilities		(3,249	)		520			(4,093	)		(1,785	)
Income taxes receivable		64			(6	)		380			(52	)
Other assets and liabilities, net		(83	)		(187	)		(344	)		(85	)
Net cash provided by operations		9,474			9,905			16,917			31,649
Cash flows from investing activities:
Purchases of rental assets		(9,894	)		(6,965	)		(25,197	)		(20,756	)
Purchases of property and equipment		(6,773	)		(5,608	)		(18,749	)		(16,693	)
Net cash used in investing activities		(16,667	)		(12,573	)		(43,946	)		(37,449	)
Cash flows from financing activities:
Borrowings under revolving credit facility		131,834			121,552			411,235			362,112
Repayments under revolving credit facility		(123,118	)		(119,070	)		(383,775	)		(356,985	)
Payments under capital lease obligations		(56	)		(52	)		(161	)		(143	)
Purchase of treasury stock		(452	)		—			(904	)		(235	)
Proceeds from exercise of stock options		155			167			591			170
Net cash provided by financing activities		8,363			2,597			26,986			4,919
Net increase (decrease) in cash		1,170			(71	)		(43	)		(881	)
Cash at beginning of period		5,911			3,637			7,124			4,447
Cash at end of period	$	7,081		$	3,566		$	7,081		$	3,566

Balance Sheet, Cash Flow and Other Ratios (A)
(Dollars in thousands, except per share amounts)

	October 31,			October 31,			January 31,
	2004			2003			2004
Merchandise inventories, net	$	180,664		$	153,252		$	138,552
Inventory turns, trailing 12 months (B)		1.84			1.83			1.90
Long-term debt	$	56,906		$	51,479		$	29,623
Long-term debt to total capitalization (C)		39.5	%		40.9	%		25.4	%
Book value (D)	$	87,289		$	74,491		$	86,993
Book value per share (E)	$	7.32		$	6.58		$	7.58

	Three Months Ended October 31,						Nine Months Ended October 31,
	2004			2003			2004			2003
EBITDA (F)		8,509		$	6,350		$	33,926		$	25,350
Adjusted EBITDA (F)		(1,385	)	$	(615	)	$	8,729		$	4,594
Comparable-store revenues (G):
Merchandise		6.6	%		2.4	%		8.0	%		0.2	%
Rental		-5.9	%		-1.4	%		-3.8	%		4.0	%
Total		3.8	%		1.6	%		5.3	%		1.0	%

(A)	Calculations may differ in the method employed from similarly titled measures used by other companies.
(B)	Calculated as merchandise cost of goods sold for the twelve months ended October 31, 2004 divided by average merchandise inventory for the twelve months ended October 31, 2004.
(C)	Defined as long-term debt divided by long-term debt plus total shareholders’ equity (book value).
(D)	Defined as total shareholders’ equity.
(E)	Defined as total shareholders’ equity divided by weighted average diluted shares outstanding as of period end.
(F)	It is important to note that EBITDA and Adjusted EBITDA are supplemental non-GAAP measures. EBITDA is defined as “net income before interest, taxes, depreciation and amortization” and is a widely used indicator of a company’s ability to service debt. Adjusted EBITDA is defined as “net income before interest, taxes, depreciation and amortization” less “expenditures for rental assets” and could be viewed as an indicator of our ability to service debt following the procurement of rental assets. Neither EBITDA nor Adjusted EBITDA are intended to represent or to be considered as alternatives to operating income or cash flows from operations.

     The following table reconciles EBITDA to our unaudited consolidated financial statements contained herein:

	Three Months Ended October 31,						Nine Months Ended October 31,
	2004			2003			2004		2003
Net income (loss)	$	(1,763	)	$	(3,810	)	$	549	$	(4,690	)
Interest expense		539			547			1,353		1,579
Income tax expense (benefit)		(1,062	)		—			322		—
Rental asset depreciation expense		5,676			4,860			16,668		14,397
Property and equipment depreciation expense		5,097			4,731			14,968		13,999
Amortization expense		22			22			66		65
EBITDA	$	8,509		$	6,350		$	33,926	$	25,350

     The following table reconciles Adjusted EBITDA to our unaudited consolidated financial statements contained herein:

	Three Months Ended October 31,						Nine Months Ended October 31,
	2004			2003			2004			2003
Net income (loss)	$	(1,763	)	$	(3,810	)	$	549		$	(4,690	)
Interest expense		539			547			1,353			—
Income tax expense (benefit)		(1,062	)		—			322			1,579
Rental asset depreciation expense		5,676			4,861			16,668			14,397
Property and equipment depreciation expense		5,097			4,730			14,968			13,999
Amortization expense		22			22			66			65
Purchase of rental assets		(9,894	)		(6,965	)		(25,197	)		(20,756	)
Adjusted EBITDA	$	(1,385	)	$	(615	)	$	8,729		$	4,594

(G) Stores included in the comparable-store revenues calculation are those stores that have been open for a minimum of 60 weeks. Also included are stores that are remodeled or relocated during the comparable period. Sales via the Internet are not included and closed stores are removed from each comparable period for the purpose of calculating comparable -store revenues.

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