Electronics Boutique Reports First Quarter Results ~ Comparable Store Sales Up 14.5% ~ ~ Total Revenue Increases 36.2% ~ ~ EPS i

Electronics Boutique Reports First Quarter Results ~ Comparable
Store Sales Up 14.5% ~ ~ Total Revenue Increases 36.2% ~ ~ EPS is $0.15
Excluding Merger Costs; Ahead of Expectations ~ 


WEST CHESTER, Pa., May 26  /PRNewswire-FirstCall/ -- Electronics Boutique
Holdings Corp. (NASDAQ:ELBO), a leading global specialty retailer of video
games and related products, today announced financial results for the first
quarter ended April 30, 2005.

Financial Results

For the first quarter of fiscal 2006, total revenue increased 36.2% to $507.1
million from $372.4 million in the comparable period last year. Comparable
store sales rose 14.5%, with double-digit gains in all markets and particular
strength in European stores and domestic strip center locations. The sales
growth was driven by strong demand for hardware, particularly Sony's PSP and
PS2, as well as a 30.4% increase in total software sales.  First quarter gross
margin on sales was 26.0% versus 26.9% last year due to the sales mix shift to
lower margin hardware.

Excluding costs related to the pending merger with GameStop Corp., net income
increased 22.6% to $3.7 million, or $0.15 per diluted share, which was ahead of
previously announced expectations.  This compares to net income of $3.0
million, or $0.12 per diluted share, in the same period last year.  On a GAAP
basis, which includes approximately $1.5 million of pre-tax merger- related
costs, net income for the first quarter of fiscal 2006 was $2.8 million, or
$0.11 per diluted share.  Please see the schedule accompanying this release for
the full reconciliation of GAAP to comparable basis net income and net income
per share.

Jeffrey Griffiths, President and Chief Executive Officer, stated, "We continued
to successfully execute our key business initiatives, as evidenced by our
double-digit comparable store sales and the announced acquisition of Spanish
retailer, Jump.  During the quarter, we generated strong hardware growth that
was driven primarily by sales of the PS2 slim and the Nintendo DS as well as
the successful launch of the Sony PSP.  At the same time, we also drove growth
in our software business, which was led by Sony's 'Gran Turismo 4' and
continued increases in our pre-played business."

During the quarter, the Company opened 106 new stores, increasing the total
store count to 2,071 as of April 30, 2005.  The Company operated 1,623 stores
at the end of the first quarter of fiscal 2005.

Business Outlook

Based on current business trends, the Company reiterates its previous fiscal
2006 outlook for total revenue to increase from 15% to 20%, assuming comparable
store sales of flat to 3%, and diluted earnings per share to range from
approximately $2.34 to $2.44.  The Company's outlook does not include the
potential dilutive impact of the recently announced acquisition of Jump
Ordenadores S.L.U. or the impact of any merger-related costs.

In addition, as previously announced on April 18, 2005, Electronics Boutique
and GameStop Corp. entered into a definitive agreement and plan of merger that
will create a leading video game retailer with over 4,000 stores worldwide. 
This transaction is subject to certain regulatory and shareholder approvals and
is currently expected to close in the third quarter of fiscal 2006.

Mr. Griffiths concluded, "We are looking forward to joining forces with
GameStop and believe our complementary strengths will result in a compelling
combination.  However, until the transaction is finalized we are operating our
business as usual and continue to focus on executing our key growth
initiatives.  We are very optimistic about the long-term prospects of both our
business and our industry.  In particular, we are looking forward to the launch
of Microsoft's Xbox 360 this holiday season, which will mark the beginning of
an exciting new cycle and phase of growth in the video game market."

Conference Call Information

The Company will host an investor conference call today at 5 p.m. Eastern to
review its financial results.  The call will be open to all interested
investors through a simultaneous Internet broadcast at
http://www.ebholdings.com/, and it will be archived for two weeks on the
website.  A recording of the call will also be available at 8 p.m. Eastern on
May 26, 2005 through midnight on June 2, 2005.  Listeners should call 1-800-
642-1687 (domestic) or 1-706-645-9291 (international), and use access code
6448550.

About Electronics Boutique Holdings Corp.

Electronics Boutique, a Fortune 1000 company, is a leading global specialty
retailer dedicated exclusively to video game hardware and software, PC
entertainment software, accessories and related products. As of April 30, 2005,
the company operated 2,071 stores in the United States, Australia, Canada,
Denmark, Germany, Italy, New Zealand, Norway, Puerto Rico and Sweden - -
primarily under the names EB Games and Electronics Boutique. The company
operates an e-commerce website at http://www.ebgames.com/. Additional company
information is available at http://www.ebholdings.com/.

This release contains forward-looking statements, including statements by
Jeffrey Griffiths and those related to the financial performance of Electronics
Boutique for the first quarter and full fiscal year ending January 28, 2006, to
the proposed acquisition of Jump and proposed merger with GameStop, video game
industry events and trends and the impact of those events and trends on
Electronics Boutique, and to growth prospects for Electronics Boutique.
Forward-looking statements refer to expectations, projections and other
characterizations of future events or circumstances and are often identified by
the use of words such as "may," "will," "expect," "believe," "anticipate,"
"intend," "could," "estimated," "continue" or comparable terminology. In
addition to factors specified in Electronics Boutique's recent filings with the
Securities and Exchange Commission, there are other factors that could cause
actual results to materially differ from those expressed or implied in these
forward-looking statements, such as the schedule and sell- through for new
hardware and software releases, consumer demand for video game hardware and
software, the timing of the introduction of new generation hardware systems,
pricing changes by key vendors for hardware and software and the timing of any
such changes, the adequacy of supplies of new and pre-played products, currency
fluctuations, increased competition and promotional activity from other
retailers, and the availability of locations for, and timing of the opening of,
new domestic and international stores, the fulfillment of the conditions
necessary to complete the acquisition of Jump and the merger with GameStop, and
the ability to successfully integrate Jump's business with Electronics
Boutique's existing operations. In light of the risks and uncertainties
inherent in the forward-looking statements, these statements should not be
regarded as a representation by Electronics Boutique or any other person that
the projected results, objectives or plans will be achieved. Electronics
Boutique undertakes no obligation to revise or update the forward-looking
statements to reflect events or circumstances after the date hereof.

                     Electronics Boutique Holdings Corp.
                      Consolidated Statements of Income
              (Amounts in thousands, except per-share amounts)

                                                  13 Weeks Ended
                                             April 30,        May 1,
                                               2005            2004

  Net sales                                   $505,961       $370,964
  Management fees                                1,124          1,453
  Total revenues                               507,085        372,417

  Cost of goods sold                           374,360        271,154

  Gross profit                                 132,725        101,263

  Costs and expenses:
  Selling, general and administrative
   expense                                     118,502         88,517
  Depreciation and amortization                 10,802          8,361

  Operating income                               3,421          4,385
  Interest income, net                             917            452

  Income before income tax expense               4,338          4,837
  Income tax expense                             1,561          1,791

  Net income                                    $2,777         $3,046


  Net income per share:
  Basic                                          $0.11          $0.12
  Diluted                                        $0.11          $0.12


  Weighted average shares outstanding:
  Basic                                         24,696         24,526
  Diluted                                       25,079         24,913



                     Electronics Boutique Holdings Corp.
     Supplemental Information - Reconciliation of Merger Related Expenses
               (Amounts in thousands, except per-share amounts)

                                                    13 Weeks Ended
                                                        April 30,
                                                          2005
  Selling, general and administrative expense           $118,502
   Less: Merger related expenses                           1,496
  Selling, general and administrative expense
   excluding merger related expenses                     117,006

  Net income                                              $2,777
   Add: After-tax merger related expenses                    958
  Net income excluding merger related expenses             3,735

  Net income per share - diluted                           $0.11
   Add: After-tax merger related expenses
    per share - diluted                                     0.04
  Net income per share excluding merger
   related expenses - diluted                              $0.15



                     Electronics Boutique Holdings Corp.
                  Selected Consolidated Balance Sheet Data
                           (Amounts in thousands)

                                         April 30,     May 1,   January 29,
                                           2005         2004       2005

  Cash and cash equivalents                $92,752     $62,820     $94,345

  Marketable securities                     45,225      19,470      80,950

  Merchandise inventories                  329,650     265,529     291,678

  Total current assets                     514,127     385,946     515,636

  Total assets                             723,068     552,361     724,200


  Accounts payable                         236,098     165,231     228,825

  Total current liabilities                332,358     236,662     340,214

  Total liabilities                        365,635     262,686     372,732

  Total stockholders' equity               357,433     289,675     351,468



                                 Schedule 1
                     Electronics Boutique Holdings Corp.
                          Domestic Retail Sales Mix

                                   13 Weeks Ended    13 Weeks Ended
                                      April 30,           May 1,
                                        2005              2004

  Video Game Software                    57%               61%
  Video Game Hardware                    23%               17%
  PC Software                             7%                9%
  Accessories                             9%               11%
  Other                                   4%                2%


DATASOURCE: Electronics Boutique Holdings Corp.



CONTACT:  James A. Smith, Chief Financial Officer, Electronics Boutique

Holdings Corp., [phone], or Financial Dynamics: Investors: Cara

O'Brien/Melissa Myron, or Media:  Melissa Merrill, [phone]



Web site:  http://www.ebgames.com/

http://www.ebholdings.com/ 

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