Filed by Circuit City Stores, Inc.
                           Pursuant to Rule 425 under the Securities Act of 1933
                                        And deemed filed pursuant to Rule 14a-12
                                          Of the Securities Exchange Act of 1934
                                      Subject Company: Circuit City Stores, Inc.
                                                   Commission File No. 001-05767

                 REGISTRATION STATEMENT FOR SEPARATION OF CARMAX
                      FROM CIRCUIT CITY DECLARED EFFECTIVE


                   Shareholder Vote Set for September 10, 2002


Richmond, Va., August 6, 2002 - Circuit City Stores, Inc. announced today
that the Securities and Exchange Commission has declared effective the CarMax,
Inc. registration statement, which includes a proxy statement/prospectus
relating to the previously announced plan to separate the CarMax auto superstore
business from the Circuit City consumer electronics business through a tax-free
transaction in which CarMax, Inc., presently a wholly owned subsidiary of
Circuit City Stores, Inc., would become an independent, separately traded public
company.

Holders of record of outstanding shares of Circuit City Group Common Stock and
CarMax Group Common Stock at the close of business on July 22, 2002, will be
entitled to vote upon a proposal to approve the separation and other related
matters at a special meeting of shareholders scheduled for September 10, 2002.
Circuit City Stores expects to mail proxy solicitation materials, including the
proxy statement/prospectus for the special meeting, to shareholders by
mid-month.

If the shareholders and the board of directors approve the separation plan,
Circuit City Stores will redeem its CarMax Group stock in exchange for shares of
CarMax, Inc. common stock. Simultaneously, a number of shares of CarMax, Inc.
common stock equal to the number of shares of CarMax Group stock reserved for
the Circuit City Group will be distributed as a tax-free dividend to the holders
of Circuit City Group stock. The company expects the separation, if approved, to
be effective October 1, 2002.

With headquarters in Richmond, Va., Circuit City Stores, Inc. (NYSE:CC,KMX)
operates 605 Circuit City Superstores, 17 mall-based Circuit City Express stores
and 40 CarMax stores in 38 locations. Circuit City is a leading national
retailer of brand-name consumer electronics, personal computers and
entertainment software, operating more locations in more markets than any other
consumer electronics specialty retailer. CarMax is the nation's leading
specialty retailer of used cars. Its locations include 36 used-car superstores
and 17 new-car franchises, 15 of which are integrated or co-located with its
used-car superstores. For more information, access the company's Web sites at
circuitcity.com and CarMax.com.



Security holders are urged to read the proxy statement/prospectus, as well as
the other materials filed as part of the registration statement, when they
become available because they will contain important information. Investors may
obtain a copy of these materials when they become available, as well as other
materials filed with the SEC concerning Circuit City and CarMax, Inc., at the
SEC's Web site at http://www.sec.gov. In addition, these materials and other
documents may be obtained free of charge by directing a request to Circuit City
Stores, Inc., 9950 Mayland Drive, Richmond, Virginia 23233, Attention: Corporate
Secretary, Telephone: (804) 527-4022.

With respect to the separation, Circuit City and its officers and directors may
be deemed to be participants in the solicitation of proxies from the company's
shareholders. Information regarding Circuit City's officers and directors is
included in Circuit City's proxy statement for its 2002 annual meeting of
shareholders filed with the SEC on May 15, 2002. This document is available free
of charge at the SEC's Web site or from Circuit City Stores, Inc. as described
above.

This release contains forward-looking statements, which are subject to risks and
uncertainties. Additional discussion of factors that could cause actual results
to differ materially from management's projections, forecasts, estimates and
expectations is contained in the company's SEC filings.


                                      # # #


Contact:   Ann Collier, Vice President of Financial and Public Relations,
                        Circuit City Stores, Inc., (804) 527-4058
           Dandy Barrett, Director of CarMax Investor Relations, (804) 935-4591
           Celeste Gunter, Director of Circuit City Investor Relations,
                        (804) 418-8237