hhgregg to Explore Strategic Alternatives

INDIANAPOLIS–(BUSINESS WIRE)–hhgregg, Inc. (NYSE: HGG) (“hhgregg” or the “Company”) today announced
that it has engaged Stifel, Nicolaus & Co., Inc. and Miller Buckfire &
Co., LLC, each subsidiaries of Stifel Financial Corp. (NYSE: SF) to
pursue a range of potential strategic and financial transactions that
will support the Company’s initiatives to improve liquidity and return
to profitability.

“We are committed to improving our results through our business
strategy, including investments made to shift our focus to appliances
and furniture, and additional expected cost reductions,” said Robert J.
Riesbeck, hhgregg’s President and CEO. “We believe it is an appropriate
time to explore potential strategic transactions. As the Company
undertakes this exploration process, we are focused on the execution of
our business strategy and remain fully committed to serving our
customers’ needs.”

Stifel Nicolaus and Miller Buckfire have been engaged as hhgregg’s
financial advisor and investment banker. The Company, working with its
advisers, plans to proceed in a timely and orderly manner, but has not
set a definitive timetable for completion of this process. There can be
no assurance that this review process will result in a transaction or
other strategic alternative of any kind. The Company does not intend to
disclose developments or provide updates on the progress or status of
this process unless it deems further disclosure is appropriate or
required.

About hhgregg

hhgregg is an appliance, electronics and furniture retailer that is
committed to providing customers with a truly differentiated purchase
experience through superior customer service, knowledgeable sales
associates and the highest quality product selections. Founded in 1955,
hhgregg is a multi-regional retailer currently with 220 stores in 19
states that also offers market-leading global and local brands at value
prices nationwide via hhgregg.com.

Forward Looking Statements

The following is a Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995:

This press release includes forward-looking statements, including with
respect to hhgregg’s intentions and plans to explore strategic
alternatives. hhgregg has based these forward-looking statements on its
current expectations, assumptions, estimates and projections. While
hhgregg believes these expectations, assumptions, estimates and
projections are reasonable, these forward-looking statements are only
predictions and involve known and unknown risks and uncertainties, many
of which are beyond its control. These and other important factors may
cause hhgregg’s actual results, performance or achievements to differ
materially from any future results, performance or achievements
expressed or implied by these forward-looking statements. Some of the
key factors that could cause actual results to differ from hhgregg’s
expectations are: the ability to successfully execute the Company’s
strategies and initiatives, particularly in returning the Company to
profitable growth; the Company’s ability to increase customer traffic
and conversion; competition in the retail industry; the Company’s
ability to maintain a positive brand perception and recognition; the
Company’s ability to attract and retain qualified personnel; the
Company’s ability to maintain the security of customer, associate and
Company information; rules, regulations, contractual obligations,
compliance requirements and fees associated with accepting a variety of
payment methods; the Company’s ability to effectively achieve cost
cutting initiatives; the Company’s ability to generate strong cash flows
to support its operating activities; the Company’s relationships and
operations of its key suppliers; the Company’s ability to generate
sufficient cash flows to recover the fair value of long-lived assets;
the Company’s ability to maintain and upgrade its information technology
systems; the fluctuation of the Company’s comparable store sales; the
effect of general and regional economic and employment conditions on the
Company’s net sales; the Company’s ability to meet financial performance
guidance; disruption in the Company’s supply chain; changes in trade
regulation, currency fluctuations and prevailing interest rates; and the
potential for litigation.

Other factors that could cause actual results to differ from those
implied by the forward-looking statements in this press release are more
fully described in the “Risk Factors” section in the Company’s Annual
Report on Form 10-K for fiscal year 2016 filed May 19, 2016 and the
Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended
December 31, 2016 filed on January 26, 2017. Given these risks and
uncertainties, you are cautioned not to place undue reliance on these
forward-looking statements. The forward-looking statements included in
this press release are made only as of the date hereof. hhgregg does not
undertake, and specifically declines, any obligation to update any of
these statements or to publicly announce the results of any revisions to
any of these statements to reflect future events or developments.

Contacts

hhgregg, Inc.
Lance Peterson, 317-848-8710
Vice President,
Finance and Planning
investorrelations@hhgregg.com