Freeman Spogli and H.H. Gregg Executive Management Invest in Gregg Appliances, Inc.

Indianapolis, IN, January 14, 2005 - Gregg Appliances, Inc. (“H.H. Gregg” or the “Company”), announced today that it has entered into a definitive agreement to be recapitalized by Freeman Spogli & Co. (“Freeman Spogli”), a leading private equity investment firm, and H.H. Gregg’s executive management. Since its founding in 1955, H.H. Gregg has evolved into a leading specialty retailer of premium video products, including digital televisions and home theatre systems, brand name appliances, audio products and accessories. The Company currently operates 58 retail stores in Ohio, Indiana, Georgia, Tennessee, Kentucky and Alabama. Following the recapitalization, Freeman Spogli will own a majority interest in the Company, with members of H.H. Gregg’s executive management team continuing to own a significant interest in the Company. The recapitalization is subject to customary closing conditions and is expected to be completed during the first quarter of 2005.

“We are very excited to be partnering with Freeman Spogli, a knowledgeable investor with a long and successful track record in the specialty retail industry,” said Jerry Throgmartin, Chairman and CEO of H.H. Gregg. “Freeman Spogli recognizes the special relationships we have with our customers, vendors and employees and we believe our affiliation with Freeman Spogli will help us to continue the growth of the H.H. Gregg franchise.” Mr. Throgmartin, along with H.H. Gregg’s existing executive management team, will continue to operate the Company in their current capacities.

H.H. Gregg has become a market leader by providing consumers with a comprehensive assortment of major appliances and digital and home theater products through an extensively trained, professional sales force. Since 1955, H.H. Gregg has been owned and operated by the Gregg/Throgmartin family, who have been responsible for expanding the Company’s store base beyond its home market in central Indiana.

“H.H. Gregg has established itself as a leader in the premium video and appliance business in each of its markets due to its extraordinary focus on customer service and superior product assortments,” said John Roth, a Partner with Freeman Spogli. “Jerry Throgmartin, Dennis May and their team have done an outstanding job expanding the business and we are pleased to become a long-term investor and strategic partner. We look forward to helping H.H. Gregg continue its expansion.”

KeyBanc Capital Markets, based in Cleveland, Ohio, acted as financial adviser to H.H. Gregg. Ice Miller, based in Indianapolis, Indiana, acted as legal adviser to H.H. Gregg. Wachovia Securities, based in Charlotte, North Carolina acted as financial adviser to Freeman Spogli. Bingham McCutchen LLP, New York, New York acted as legal adviser to Freeman Spogli.

About Freeman Spogli

Freeman Spogli & Co. (www.freemanspogli.com) is a private equity firm dedicated exclusively to investing and partnering with management in companies in the retailing, direct marketing and distribution industries in the United States. The firm’s sector focus provides Freeman Spogli with a detailed knowledge and understanding of changes in consumer and business buying patterns, demographic trends, competitive dynamics and shifting distribution channels. Since its founding in 1983, the firm has invested $2.0 billion in 36 portfolio companies and is currently making investments from FS Equity Partners V, L.P., a $1.0 billion fund. Freeman Spogli has offices in Los Angeles and New York.

Contact Information: Jayne Atkisson jatkisson@hhgregg.com 317-816-6605

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