ULTE Ultimate Electronics (MM)

Ultimate Electronics Discusses Interim Sales Results for the Second Quarter Ending July 31, 2004 and Revises Sales Expectations for the Second Quarter and Second Half of Fiscal 2005 DENVER, July 15 /PRNewswire-FirstCall/ -- Ultimate Electronics, Inc. (NASDAQ:ULTE) today discussed its interim sales results for the second quarter ending July 31, 2004 and revised its sales expectations for the second quarter and the second half of the fiscal year ending January 31, 2005. On June 3, 2004, Ultimate Electronics provided revised comparable store sales expectations for the second quarter and second half of the fiscal year ending January 31, 2005, estimating comparable store sales to improve to negative low-single digits in the second quarter and positive mid-single digits in the second half of fiscal 2005. The Company's comparable store sales for the second quarter through July 11, 2004 are down approximately 8%, and its total sales for the quarter-to-date are flat compared to the same period in the prior year. As a result, the Company expects comparable store sales for the quarter ending July 31, 2004 to be down 7% to 9% and comparable store sales for the second half of the fiscal year ending January 31, 2005 to be flat to slightly positive at between 0% and 2%. The Company plans to update its earnings guidance when it reports earnings for the quarter on August 26, 2004. David J. Workman, President and Chief Executive Officer, stated, "Store traffic is taking longer to re-establish than we had originally planned. As a result, we are reducing our sales expectations for the second quarter and the second half of fiscal 2005. We continue to expect improved sales performance in the second half, in part because we expect sales in the television category, which has been our strongest performing category in the first half of this year, to account for a larger percentage of our sales in the second half, and in part because we will not be contending with the system integration issues that we experienced in the second half of last year. We continue to fine-tune our message to the consumer and optimize our cost structure in light of current sales trends. With six months into the implementation of our turnaround strategy, we remain focused on improving our market position and long-term operating results." Ultimate Electronics is scheduled to issue a press release covering its sales results for the second quarter on Thursday, August 5, 2004. Ultimate Electronics is scheduled to release its second quarter earnings results on the morning of Thursday, August 26, 2004 and to hold a conference call at 11:00 a.m. Eastern Time on August 26, 2004 to discuss second quarter results. The statements made in this news release, other than those concerning historical financial information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects upon the company. These forward-looking statements include statements regarding: expected sales for the second quarter and second half of fiscal 2005; improved sales performance from strong television sales; the fine-tuning of the message to the consumer; the optimization of the Company's cost structure; market position; and long term results. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, but not limited to: changes in general economic conditions; success of sales promotions and marketing efforts; shifts in merchandise mix; activities of competitors; terrorism and acts of war; consumer acceptance of new technologies; risks associated with the operation of our new management information system; the number of new home starts and closings; and other risk factors identified in the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2004, filed with the Securities and Exchange Commission. There can be no assurance that future developments affecting the company will be those anticipated by management. The company disclaims any obligation to update or revise any of the forward-looking statements that are in this news release. About Ultimate Electronics, Inc. (NASDAQ:ULTE) Ultimate Electronics is a leading specialty retailer of home entertainment and consumer electronics products in 14 states. The company operates 65 stores, including 54 stores in Arizona, Idaho, Illinois, Iowa, Kansas, Minnesota, Missouri, Nevada, New Mexico, Oklahoma, South Dakota, Texas and Utah under the trade name Ultimate Electronics(R) and 11 stores in Colorado under the trade name SoundTrack(R). In addition, the company operates Fast Trak Inc., an independent electronics repair company and a wholly owned subsidiary of Ultimate Electronics. During the past two years, the company received numerous industry awards including Audio Video International's 2003 "Top 10 Audio/Video Retailer of the Year." For further information, please contact David A. Carter, Chief Financial Officer of Ultimate Electronics, Inc., +1-303-801-4025. DATASOURCE: Ultimate Electronics, Inc. CONTACT: David A. Carter, Chief Financial Officer of Ultimate Electronics, Inc., +1-303-801-4025 Company News On-Call: http://www.prnewswire.com/comp/877054.html

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