Hastings Entertainment Enters Into an Amendment to the Amended and Restated Loan and Security Agreement

Hastings Entertainment, Inc. HAST on July 21, 2011, entered into an amendment to the Amended and Restated Loan and Security Agreement with Bank of America, N.A., acting in its capacity as agent for various lenders identified therein (the "Agreement"). The First Amendment increases the revolving credit facility from $100,000,000 to $115,000,000 and also increases the Company's advance rate on eligible inventory. Prior to the First Amendment, the Base Margin (as defined in the Agreement) was between 1.0% and 1.75%, and the Libor Margin (as defined in the Agreement) was between 2.0% and 2.75%, depending on the level of average availability under the facility. Under the First Amendment, the range of the Base Margin is between 1.0% and 1.50% and the range of the Libor Margin is between 2.0% and 2.50%, depending on the level of availability under the facility. In both cases, the greater the availability, the lower the applicable Margin. The First Amendment also allows the payment of dividends, upon the satisfaction of certain conditions. The payment of dividends was previously prohibited under the Agreement. The First Amendment includes a change in the financial performance covenant that requires the Company, at all times, to maintain availability that is greater than or equal to 10% of the lesser of (a) the Borrowing Base (as defined in the Agreement), and (b) the Revolving Credit Ceiling (as defined in the Agreement), but no less than $10 million, at all times. "Amending our loan will enable us to lower our anticipated cost of capital and enhance our financial flexibility," said John H. Marmaduke, Chief Executive Officer and Chairman. "We appreciate the strong level of support we received from Bank of America, N.A."