New York, April 24, 2008 -- Moody's Investors Service today upgraded the long term debt ratings of GameStop Corp., corporate family and probability of default ratings to Ba1 from Ba2, and affirmed the speculative grade liquidity rating at SGL-1. The rating outlook is stable. The upgrade reflects the company's strong operating performance combined with a continuous reduction in its funded debt level. This has resulted in a significant improvement in credit metrics to investment grade levels, debt to EBITDA has fallen to 3.0 times, EBITA to interest expense has risen to 4.0 times, and free cash flow to net debt has risen to 17.0%.

The following ratings are upgraded:

Corporate family rating to Ba1 from Ba2;

Probability of default rating to Ba1 from Ba2; and Senior unsecured notes to Ba1 (LGD4, 63%) from Ba3 (LGD4, 61%).

The following rating is affirmed:

Speculative grade liquidity rating of SGL-1. GameStop's Ba1 corporate family rating is supported by the company's strong credit metrics and the company's market position as the leading specialty retailer of electronic games with a particular strength in the used game business. The electronic games segment is one of the few retail segments that continues to exhibit growing demand and has not yet become impacted by the downloading of content off the internet.

In addition, the rating category also reflects the company's moderate scale with revenues of $7.1 billion, its international store footprint, and its very good liquidity, including a $400 million asset based revolving credit facility. The rating category is primarily constrained by the long term future risk that electronic gaming content will be made available to download off the internet; potentially placing GameStop in a challenging competitive position given its sizable store base. The rating category also reflects the risk of the company over expanding its store base given its very aggressive store expansion plans. In addition, the rating category reflects the company's product offering, which is highly discretionary and exposed to frequent renewal cycles, and by its high seasonality, which exposes the company to a "make or break" fourth quarter holiday selling season.

The stable rating outlook reflects Moody's expectation that the company will maintain its current level of strong credit metrics along with moderate financial policies, which include very good liquidity and a very modest level of fold in acquisitions.

GameStop Corp., headquartered in Grapevine, Texas, is the world's largest specialty retailer of video game products and PC entertainment software. The company operates 5,266 stores in the United States, Australia, Canada, and Europe primarily under the names GameStop and EBGames. Revenues for the fiscal year ended February 2, 2008 were approximately $7.1 billion.