May 22 – May 29, 2008 Edition

Hastings Entertainment
Reports Record
First Quarter Earnings

AMARILLO, TX/5/19/08–Hastings Entertainment, Inc. (Nasdaq: HAST), a leading multimedia entertainment retailer, today reported results for the three months ended April 30, 2008. Net income was approximately $3.0 million, or $0.28 per diluted share, for the first quarter of fiscal 2008 compared to net income of $2.5 million, or $0.22 per diluted share, for the first quarter of fiscal 2007.

Net income grew for the fifth consecutive quarter. Total comparable store revenues increased 4.2% for the first quarter of fiscal 2008 compared to a Comp decrease of 3.9% during the same period in fiscal 2007.

“I’m excited by the record profits our new management team delivered on top of a very strong first quarter during fiscal 2007,” said Chief Executive Officer John Marmaduke. “BUY, SELL, TRADE, RENT creates a new retailing synergy by offering greater value and selection from a seamless assortment of new and used products, while monetizing our customers’ unwanted entertainment. We have an opportunity to take advantage of weakened competitors with our new and used Entertainment Superstore, while additionally delivering exceptional value to our customers in a difficult economic environment.”

Total revenues for the first quarter increased $3.9 million, or 3.1%, to $131.9 million compared to $128.0 million for the first quarter of fiscal 2007. The Books segment increased 5.6% during the first quarter, primarily due to increased sales of new trade paperback books, as well as strong sales of used hardback and trade paperback books. Hit titles driving book sales during the quarter included New Earth, by author Eckhart Tolle, and The Last Lecture, by author Randy Pausch. In the previous year, sales had declined by 1.3%.

Fiscal Year 2008 Guidance

“Net income for the quarter was substantially better then our internal forecast, which is the basis for our guidance,” said Dan Crow, Vice President and Chief Financial Officer. “From an internal perspective, we are confident about our ability to grow our earnings for the remainder of the year; however, we are concerned about the uncertain economic outlook for the remainder of the year. Consequently, we are reaffirming our guidance of net income per diluted share ranging from $0.95 to $1.00 for the full fiscal year ended January 31, 2009.”

Founded in 1968, Hastings Entertainment, Inc. is a leading multimedia entertainment retailer that combines the sale of new and used books, videos, video games and CDs, as well as trends merchandise, with the rental of videos and video games in a superstore format. We currently operate 153 superstores, averaging approximately 20,000 square feet, primarily in medium-sized markets throughout the United States.

The company also operates, an e-commerce Internet Web site that makes available to our customers new and used entertainment products and unique, contemporary gifts and toys. The site features exceptional product and pricing offers. The Investor Relations section of our web site contains press releases, a link to request financial and other literature and access our filings with the Securities and Exchange Commission.