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Lou Provost Lou Provost Lou Provost Lou Provost Lou Provost Lou Provost Lou Provost Lou Provost Executive Division VP Sales Channels Executive Division VP Sales Channels

NEW YORK METRO MANHATTAN

RadioShack Store Operations RadioShack Store Operations • Associates • Associates • Why They’re A Competitive • Why They’re A Competitive Edge Edge • Compensation: Making • Compensation: Making RadioShack Worth Their RadioShack Worth Their While While • Programs to Drive • Programs to Drive Performance in 2003 Performance in 2003 • Environment: • Environment: Benefits of Retrofitting Benefits of Retrofitting and Redesigning and Redesigning

People: Competitive Edge People: Competitive Edge 70% of RadioShack Customers 70% of RadioShack Customers Are Mission Driven* Are Mission Driven* So RadioShack Associates So RadioShack Associates Have to Have Answers Have to Have Answers * Source: Envirosell * Source: Envirosell

Consumers: RadioShack’s Sales Associates Consumers: RadioShack’s Sales Associates Are More Knowledgeable than the Competition’s Are More Knowledgeable than the Competition’s Percentage Agreeing Retailer has Knowledgeable Percentage Agreeing Retailer has Knowledgeable Employees Employees 75% 75% 50% 50% 62% 53% 61% 62% 53% 61% 48% 48% 25% 25% 18% 25% 18% 25% 0% 0% RSH BBY CC S TGT WMT RSH BBY CC S TGT WMT * Source: Savitz Research; Brand Health Tracker * Source: Savitz Research; Brand Health Tracker

RadioShack: Experienced Store Managers RadioShack: Experienced Store Managers Percentages of RadioShack Manager Retention Percentages of RadioShack Manager Retention 100% 100% 50% 50% 75% 75% 40% 40% 30% 30% 50% 50% 82% 75% 40% 30% 27% 82% 75% 40% 30% 27% 20% 20% 25% 25% 10% 10% 0% 0% 0% 0% RadioShack NRF Mgr RadioShack NRF Mgr Mgr 1-5 yrs Mgr. 5-10 Mgr. 10+ Mgr 1-5 yrs Mgr. 5-10 Mgr. 10+ Mgr Retention Mgr Retention yrs. yrs. yrs. yrs. Retention Retention * Source: 2001 RSH Data and NRF Report * Source: 2001 RSH Data and NRF Report

Consumers: RadioShack’s Store Associates Consumers: RadioShack’s Store Associates More Willing to Take Time to Help More Willing to Take Time to Help Percentage Agreeing Retailer has Helpful Employees Percentage Agreeing Retailer has Helpful Employees 75% 75% 50% 50% 59% 51% 59% 51% 54% 48% 54% 48% 25% 25% 39% 32% 39% 32% 0% 0% RSH BBY CC S TGT WMT RSH BBY CC S TGT WMT * Source: Savitz Research; Brand Health Tracker * Source: Savitz Research; Brand Health Tracker

Consumers: RadioShack’s Sales Associates Consumers: RadioShack’s Sales Associates Provide Prompt Assistance More Than Competitors Provide Prompt Assistance More Than Competitors Percentage Agreeing Retailer has Employees who Percentage Agreeing Retailer has Employees who Provide Prompt Assistance Provide Prompt Assistance 75% 75% 50% 50% 48% 53% 60% 48% 53% 45% 60% 45% 25% 25% 29% 29% 35% 35% 0% 0% RSH BBY CC S TGT WMT RSH BBY CC S TGT WMT * Source: Savitz Research; Brand Health Tracker * Source: Savitz Research; Brand Health Tracker

Highlights of Select the Best Highlights of Select the Best Shares Realistic Information Shares Realistic Information Evaluates Candidates in Evaluates Candidates in Consistent Way Consistent Way Identifies Those with Identifies Those with Highest Probability of Success Highest Probability of Success Predicts Integrity Predicts Integrity

Selecting Best People Means More Sales Selecting Best People Means More Sales Performance by Advice Range Avg. Sales Per Hour Performance by Advice Range Avg. Sales Per Hour $92 $92 $88 $88 $84 $84 $80 $80 $76 $76 $72 $72 OK Good Better Best OK Good Better Best Sample of 2000 hires from Sept 2000 - July 2001. Sample of 2000 hires from Sept 2000 - July 2001.

Compensation – Rewarding Top Performers Compensation – Rewarding Top Performers • Manager & Sales Associate • Manager & Sales Associate • Base Salary or Commission • Base Salary or Commission – Minimum Wage – Minimum Wage – Commission “bands” – – Commission “bands” – PB&A receive highest PB&A receive highest percentage percentage • Spiffs • Spiffs – Special incentives that drive – Special incentives that drive associate behavior + results associate behavior + results • Managers Only • Managers Only • Monthly Bonus • Monthly Bonus • Year-End Bonus • Year-End Bonus

Floor Leader Program Floor Leader Program New 2003 Test to Drive Sales Through Better Service New 2003 Test to Drive Sales Through Better Service • Compensation • Compensation • Higher dollar per hour than regular associate • Higher dollar per hour than regular associate • Vested interest in stores success with compensation plan • Vested interest in stores success with compensation plan • Role • Role • Excel at Sales • Excel at Sales • Lead, Teach • Lead, Teach • Decision Maker • Decision Maker • Scope • Scope • Test in 200 stores • Test in 200 stores • Over Two Quarters • Over Two Quarters • Midwest Division • Midwest Division

Adding-On: Strong Early Sales Improvement Adding-On: Strong Early Sales Improvement Mystery Shopper Program to Jump Start 2003 Results Mystery Shopper Program to Jump Start 2003 Results Wireless Accessory Wireless Accessory Add-On Rate Add-On Rate Adding On 1 Accessory Adding On 1 Accessory Grew 31% in Latest Year Grew 31% in Latest Year Add-on 1 Add-on 1 Add-on 2 Add-on 2 Add-on 3 Add-on 3 Adding On 3 Grew Triple-Digits Adding On 3 Grew Triple-Digits 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02

Driving Sales Through Training Driving Sales Through Training The 2003 Plan The 2003 Plan Answers Online Content Answers Online Content • Dynamic • Dynamic • Instant Measurement • Instant Measurement • Interactive Learning • Interactive Learning High Speed Improving High Speed Improving Communications To Communications To Stores Through Stores Through • Instant Bulletins • Instant Bulletins • Reference Material • Reference Material

RetroFest 2002: RetroFest 2002: Improved RadioShack Selling Environment Improved RadioShack Selling Environment

Jacksonville Prototype (a.k.a. Best to Shop) Jacksonville Prototype (a.k.a. Best to Shop) Plans to Extend Test in 2003 Plans to Extend Test in 2003 New Relocate or Remodel New Relocate or Remodel Mall 5 45 Mall 5 45 Strip 43 134 Strip 43 134

‘Best to Shop’ Test ‘Best to Shop’ Test Sales Trending Favorably Sales Trending Favorably Tucson Sales* vs. Total RSH Tucson Sales* vs. Total RSH 4Q01 -500 bps 4Q01 -500 bps 1Q02 +200 bps 1Q02 +200 bps 2Q02 +700 bps 2Q02 +700 bps 3Q02 +1000 bps 3Q02 +1000 bps 4Q02 +900 bps 4Q02 +900 bps * = Adjusted for new and closed stores * = Adjusted for new and closed stores