[Funco, Inc. Letterhead]

FOR IMMEDIATE RELEASE

CONTACT:
Stanley A. Bodine
President
Funco, Inc.
612-946-8883


                FUNCO APPROVES REVISED ACQUISITION PROPOSAL FROM
                      ELECTRONICS BOUTIQUE AT $21 PER SHARE


MINNEAPOLIS, MN, April 21, 2000 -- Funco, Inc. (Nasdaq: FNCO) announced that it
has entered into an amendment to its March 31, 2000 definitive merger agreement
with Electronics Boutique Holdings Corp. The amendment increases the per share
acquisition price from $17.50 to $21.00 per share, payable in cash. Electronics
Boutique proposed the increase following an offer by Barnes & Noble, Inc. to
acquire the Funco shares at $21.00 per share in cash. Under the terms of the
March 31 merger agreement, Electronics Boutique had five business days following
notice from Funco of the Barnes & Noble offer to propose adjustments that would
enable Funco's Board of Directors to maintain its recommendation of the
Electronics Boutique merger agreement, offer and merger. The Electronics
Boutique tender offer is expected to commence next week.

         Funco currently owns and operates 401 retail stores, that are
predominately located in strip malls throughout the United States, and also
operates an e-commerce division, located at http://www.funcoland.com.

         THIS ANNOUNCEMENT IS NEITHER AN OFFER TO PURCHASE NOR A SOLICITATION OF
AN OFFER TO SELL SHARES OF FUNCO, INC. AT THE TIME AN OFFER IS COMMENCED FUNCO,
INC. WILL FILE WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION A
SOLICITATION/RECOMMENDATION STATEMENT WITH RESPECT TO THE OFFER. THE OFFEROR
WILL FILE A TENDER OFFER STATEMENT WITH THE COMMISSION. THE TENDER OFFER
STATEMENT (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND
OTHER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT WILL
CONTAIN IMPORTANT INFORMATION WHICH SHOULD BE READ CAREFULLY BEFORE ANY DECISION
IS MADE WITH RESPECT TO THE OFFER. THE OFFER TO PURCHASE, THE RELATED LETTER OF
TRANSMITTAL AND CERTAIN OTHER OFFER DOCUMENTS, AS WELL AS THE
SOLICITATION/RECOMMENDATION STATEMENT, WILL BE MADE AVAILABLE TO ALL
SHAREHOLDERS OF FUNCO, INC. AT NO EXPENSE TO THEM. THE TENDER OFFER STATEMENT
(INCLUDING THE OFFER TO PURCHASE, THE RELATED LETTER OF TRANSMITTAL AND ALL
OTHER OFFER DOCUMENTS FILED WITH THE COMMISSION) AND THE
SOLICITATION/RECOMMENDATION STATEMENT WILL ALSO BE AVAILABLE FOR FREE AT THE
COMMISSION'S WEBSITE AT WWW.SEC.GOV.