GTRC Guitar Center (MM)

Guitar Center (Nasdaq:GTRC) today announced the introduction of GuitarCenter.com as the centerpiece of the Company's online retail offering. For the first time, consumers can visit GuitarCenter.com to search, compare and buy direct from one of the largest selections of guitars, basses, amps, keyboards, drums, pro audio, DJ, lighting and accessories. The enhanced website broadens Guitar Center's online presence and builds upon its existing direct response business and eCommerce website, MusiciansFriend.com. The introduction of the GuitarCenter.com online store completes the first phase of the Company's plan to become a fully integrated retailer. The next phases of the Company's plan involve the addition of kiosks in Guitar Center stores to allow customers to search for products throughout the chain and on the website and eventually the integration of its Guitar Center stores and GuitarCenter.com to enable customers to complete purchases online and pick up or exchange merchandise at stores. "The introduction of GuitarCenter.com as an eCommerce website is an integral component of our overall direct response strategy for the Company," stated Marty Albertson, Chairman and Chief Executive Officer of Guitar Center. "From a long-term perspective an integrated retailer can build stronger customer loyalty and, in turn, increase repeat traffic and sales. By leveraging both GuitarCenter.com as well as our existing direct response business and MusiciansFriend.com, we are better able to cater to different types of customers. We are not only strengthening our offerings of music gear but we are also extending Guitar Center's brand awareness. Our vision is to turn Guitar Center into a world class multi-channel retailer that better understands and serves the musician community across all purchase occasions and expanding our online presence positions us to achieve this goal." About Guitar Center Guitar Center is the leading United States retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment. Our retail store subsidiary presently operates 183 Guitar Center stores across the United States. In addition, our Music & Arts division operates 90 stores specializing in band instruments for sale and rental, serving teachers, band directors, college professors and students. We are also the largest direct response retailer of musical instruments in the United States through our wholly owned subsidiary, Musician's Friend, Inc., and its catalog and web site, www.musiciansfriend.com. More information on Guitar Center can be found by visiting the Company's web site at www.guitarcenter.com. Business Risks and Forward Looking Statements This press release contains forward-looking statements relating to, among other things, plans regarding GuitarCenter.com. Sales and earnings trends are affected by many factors including, among others, world and national political events, including general economic conditions, the effectiveness of our promotion and merchandising strategies, our ability to integrate and profitably operate acquired businesses, the efficient operation of our supply chain, including the continued support of our key vendors, our effective management of business risks, including litigation, and competitive factors applicable to our retail and direct response markets. In light of these risks, the forward-looking statements contained in this press release are not guarantees of future performance and in fact may not be realized. Our actual results could differ materially and adversely from those expressed in this press release. Further, the statements made by us above represent our views only as of the date of this press release, and it should not be assumed that the statements made herein remain accurate as of any future date. We do not presently intend to update these statements prior to our next quarterly earnings release and undertake no duty to any person to effect any such update under any circumstances. Investors are also urged to review carefully the discussion under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2005, which has been filed with the Securities and Exchange Commission and may be accessed through the EDGAR database maintained by the SEC at www.sec.gov.