Digital Convergence Initiative

Fort Worth, Texas-based RadioShack Corporation (NYSE: RSH) is the nation's most trusted consumer electronics specialty retailer and a growing provider of business-to-business retail support services. The company operates a vast network of sales channels, including: nearly 7,000 company-owned and dealer stores; almost 100 RadioShack locations in Mexico; and over 600 Sprint and SAM'S CLUB wireless kiosks. RadioShack's knowledgeable and helpful sales associates deliver convenient product and service solutions within five minutes of where 94 percent of all Americans either live or work.

RadioShack is executing a multi-faceted long-term growth strategy aimed at reinvigorating the customer shopping experience and capitalizing on new initiatives that leverage the company's retail expertise.

The growth plan includes:
    - Accelerated rollout of the latest retail store format and
        reinvigorating the retail experience
    - New retailing services business
    - International geographic expansion in North America
    - Third-party retailing

RadioShack intends to reinvigorate the customer experience in three areas: store environment, product and people. The new store environment will include a merchandise and service assortment that showcases wireless, accessories, power, modern home, personal electronics, technical and services. In addition, store personnel will be retrained and new store processes put in place to provide a superior customer shopping experience.

Leveraging retail expertise. Over its history, RadioShack has gained notoriety for accelerating the adoption rates of new technologies as evidenced by the introduction of CDMA wireless technology in 1996. As part of its growth plan, the company will leverage its retail expertise to benefit current and new strategic partners.

New retailing services business. Capitalizing on its proven success in providing retailing services to other companies, RadioShack will seek new business opportunities that leverage its expertise. Today, RadioShack operates wireless kiosks, provides wireless repair services, and conducts global sourcing for other companies.

International geographic expansion. Currently, RadioShack operates retail stores in Mexico through a joint venture with Mexico-based retailer Gigant. In mid-2005, RadioShack formed a subsidiary to oversee the expansion of operations in Canada as part of the planned North American expansion strategy. It is expected that 20-30 company-owned stores, mostly in the Toronto area, will be operating in Canada by the end of 2005. Independent dealers in Canada are also operating under the RadioShack brand.

Third-party retailing. Through strategic alliances, RadioShack intends to accelerate the adoption rates of certain technology products and benefit from sales through the original equipment manufacturer channel. The company also plans to further leverage its product development and global procurement expertise through sales of its unique products to other retailers.

Thinking customers first! The company's long-term strategy is to dominate cost-effective solutions to meet everyone's routine electronics needs and families' distinct electronics wants. Consumers need all sorts of cables, connectors, accessories and batteries to help them get the most from their personal electronics - and RadioShack is famous for supplying these gadgets and gizmos. In addition, tech-savvy consumers increasingly want innovative, cutting-edge electronics, including wireless communications, digital imaging, portable computing, and home entertainment components and services - all of which RadioShack is uniquely positioned to offer.