Guitar Center 8-K Regulation FD Disclosure

Exhibit 99.1

Guitar Center, Inc.
Management Operating Model for 2004
As of December 4, 2003
($ in thousands, except per share amounts)

GC Retail	Q1		Q2		Q3		Q4		2004 Year
Net sales
Bottom end of range	243,318		252,228		259,793		328,166		1,083,505
Top end of range	250,767		259,949		267,746		338,212		1,116,674
Comp store sales increase
Bottom end of range	5	%	5	%	5	%	5	%	5	%
Top end of range	7	%	7	%	7	%	7	%	7	%
Operating income
Bottom end of range	3.8	%	3.1	%	3.8	%	8.2	%	5.0	%
Top end of range	4.0	%	3.3	%	4.0	%	8.6	%	5.2	%
American Music Retail	Q1		Q2		Q3		Q4		2004 Year
Net sales
Bottom end of range	9,532		8,928		11,010		12,489		41,959
Top end of range	9,922		9,292		11,460		12,999		43,673
Comp store sales increase
Bottom end of range	4	%	10	%	10	%	13	%	9	%
Top end of range	6	%	12	%	12	%	15	%	11	%
Operating income
Bottom end of range	-10.2	%	-11.4	%	-9.1	%	-4.4	%	-8.4	%
Top end of range	-9.8	%	-11.0	%	-8.7	%	-3.6	%	-7.9	%
Direct Response	Q1		Q2		Q3		Q4		2004 Year
Net sales
Bottom end of range	70,316		67,731		68,985		91,440		298,472
Top end of range	73,186		70,495		71,801		95,172		310,654
Operating income
Bottom end of range	8.4	%	8.3	%	8.5	%	11.4	%	9.3	%
Top end of range	8.8	%	8.7	%	8.9	%	12.2	%	9.8	%
Consolidated Company	Q1		Q2		Q3		Q4		2004 Year
Net sales
Bottom end of range	323,166		328,887		339,788		432,095		1,423,936
Top end of range	333,875		339,736		351,007		446,383		1,471,001
Operating income
Bottom end of range	4.4	%	3.7	%	4.3	%	8.5	%	5.5	%
Top end of range	4.7	%	4.0	%	4.6	%	9.0	%	5.8	%
Interest expense
Bottom end of range	1,300		1,400		1,300		1,200		5,200
Top end of range	1,500		1,600		1,500		1,400		6,000
Net earnings
Bottom end of range	8,021		6,768		8,294		22,147		45,230
Top end of range	8,718		7,427		9,018		24,162		49,325
Weighed diluted shares	25,500		25,500		25,500		25,500		25,500
EPS
Bottom end of range	0.31		0.27		0.33		0.87		1.77
Top end of range	0.34		0.29		0.35		0.95		1.93
EBITDA
Bottom end of range	19,750		18,250		20,750		43,250		102,000
Top end of range	21,250		19,500		22,000		46,250		109,000
Capital Expenditure
Bottom end of range	11,000		9,500		3,500		3,500		27,500
Top end of range	11,750		10,250		4,250		4,250		30,500

Reconciliation of EBITDA to Net Income:	Q1		Q2	Q3		Q4		2004 Year
Bottom end of range
Projected Net Income	8,021		6,768	8,294		22,147		45,230
Income Taxes (38%)	4,916		4,148	5,083		13,574		27,721
Interest Expense (mid-point)	1,400		1,500	1,400		1,300		5,600
Depreciation and Amortization (mid-point)	5,600		5,800	6,000		6,100		23,500
Rounding	(187	)	34	(27	)	129		(51	)
Projected EBITDA	19,750		18,250	20,750		43,250		102,000
Top end of range
Projected Net Income	8,718		7,427	9,018		24,162		49,325
Income Taxes (38%)	5,343		4,552	5,527		14,809		30,231
Interest Expense (mid-point)	1,400		1,500	1,400		1,300		5,600
Depreciation and Amortization (mid-point)	5,600		5,800	6,000		6,100		23,500
Rounding	189		221	55		(121	)	344
Projected EBITDA	21,250		19,500	22,000		46,250		109,000

Earnings before interest, taxes, depreciation and amortization, or EBITDA, is not a measure of financial performance under generally accepted accounting principles.  In accordance with Regulation G promulgated by the Securities and Exchange Commission, we are providing a reconciliation of projected EBITDA, a “non-GAAP” financial measure, to projected net income, the GAAP-based financial measure that we believe is most comparable.

We present this non-GAAP data because many investors view this information as a useful measure of a company’s performance or its ability to generate cash flow and service debt or capital obligations.  This financial measure should not, however, be considered as a substitute for measures determined under generally accepted accounting principles, such as net income and cash flow from operations.  Further, the calculation of EBITDA varies from company to company and thus the results that we calculated using the methodology specified above might not be comparable to the amounts reported by other companies.

The data provided in the above tables represents forward-looking statements and must be read in conjunction with the information provided in the attached Form 8-K, including that provided under the caption “Risk Factors.”