To Our Valued Customers,

At Hastings, our mission is to bring you the array of entertainment products, collectibles and basics that have made us a fixture in our local communities while also creating experiences that delight you and grow with you over the years. We have been working diligently to transform our stores with these objectives in mind and already have completed 20 refreshed stores with overwhelmingly positive reviews.

We believe we are on the right path, but we need additional financial support to fully execute our plan for the future. That is why we have initiated a comprehensive process to evaluate potential buyers for our business and, as part of that sale process, have filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code along with our corporate parent (Draw Another Circle) and sister brands (Movie Stop and SPImages). The Chapter 11 process will help to prepare our business for the intended sale while also providing additional protections and financing to allow us to serve you as usual.

Please be assured that Hastings stores and e-commerce business remain open and continue to bring you the superior selection of multimedia and entertainment products you have come to expect from us. In addition, our Passport program is continuing with all your accumulated benefits intact, and we continue to launch exciting new promotions on an ongoing basis.

At this time, we will be changing a few other programs, as outlined below:

* Hastings will no longer accept nor honor customer deposits for future movie purchases. Instead, existing deposits may be applied towards additional purchases in the store.

* Game rentals will no longer be available.

* Gift cards will expire on July 13, 30 days from today’s announcement.

* Hastings’ buyback program has been suspended.

We apologize for any inconvenience this news may cause. We have addressed more Frequently Asked Questions below and will continue to keep you updated as we work to identify a buyer. Whether its toys for the kids, on-trend merchandise for teens, electronics, comics, supplies for adults’ favorite hobbies or the opportunity to sip coffee while reading a new book, Hastings seeks to be a place where our communities come together and where everyone belongs.

We sincerely appreciate your business and hope to have the opportunity to serve you for many years to come.

Sincerely,

Jim Litwak