IPO Company Profile
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Hastings Entertainment, Inc.
3601 Plains Blvd., Suite #1, Amarillo, TX 79102 * (806) 351-2300

The company is a leading multimedia entertainment retailer that combines the sale of books, music, software, periodicals and videotapes with the rental of videotapes and video games in a superstore format.

Primary Underwriting Group
ManagerTierPhone
Salomon Smith BarneyLead Manager (212) 723-7300
A.G. Edwards & Sons, Inc.Co-manager (314) 955-3039
Furman Selz IncorporatedCo-manager (212) 309-8285

Offering Information
NASNTL:HAST Retail: SIC 5942
Type of Shares:Common Shares Filing Date:3/13/98
U.S. Shares:3,380,000 Offer Date:6/11/98
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:3,380,000 Offer Price:$13.00
Secondary Shares:0 Gross Spread:$0.91
Offering Amount: $50,700,000 Selling:$0.54
Expenses: - Reallowance:$0.10
Post-IPO Shares: -

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Locke, Purnell, Rain & Harrell
Bank's Law Firm: Vinson & Elkins
Registrar/Transfer Agent: ChaseMellon Shareholder Services, L.L.C.
Auditor: KPMG Peat Marwick

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
1/31/96 10/31/97 10/31/96 10/31/97
Revenue:$324.29$240.61$224.03Assets:$214.85
Net Income:$3.80$3.43$0.15Curr Assets:
EPS:Liabilities:$148.27
Prior EPS:Curr Liab:
Cash Flow/Oper:$28.85Equity:$66.58
Cash Flow/Fin:$13.13Cash:
Cash Flow/Inv:-$39.74Working Cap:$62.44

Competition
The entertainment retail industry is highly competitive. The Company competes with a wide variety of book retailers, music retailers, software retailers and videotape retailers that rent or sell videotapes, including independent single store operations, local multi-store operators, regional and national chains, as well as supermarkets, pharmacies, convenience stores, bookstores, mass merchants, mail order operations, warehouse clubs, record clubs, other retailers and various noncommercial sources such as libraries. With regard to its videotape sales and rental products in particular, the Company competes with cable, satellite and pay-per-view cable television systems. In addition, continuing technological advances that enhance the ability of consumers by home computer through the Internet or telephonic transmission to shop at home or access, produce and print written works or record music digitally could provide competition to the Company in the future.

Business Plan
The Company's goal is to enhance its position as a leading multimedia entertainment retailer by expanding existing stores, opening new stores in selected markets, and offering its products through the Internet. Each element of the Company's business strategy is designed to build consumer awareness of the company's concept and achieve high levels of customer loyalty and repeat business. The key elements of this strategy are the following: (I) Superior Multimedia Concept, (ii) Small to Medium-Sized Market Superstore Focus, (iii) Customer-Oriented Superstore Format, (iv) Cost-Effective Operations and (v) Low Pricing.

Use of Proceeds
The proceeds from the proposed offering will be used to fund the opening of new superstores and the expansion of existing superstores, to reduce indebtedness under the company's unsecured revolving credit facility and for general corporate purposes.

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