ITEM 5.  OTHER EVENTS.

             On August 14, 2001, Best Buy Co., Inc. (“Best Buy”), a Minnesota corporation, announced that it entered into a Support Agreement (the “Support Agreement”), dated August 13, 2001, by and among Best Buy, 3058795 Nova Scotia Limited, a Nova Scotia, Canada corporation and a wholly-owned subsidiary of Best Buy (whose name has been changed to Future Shop Acquisition Inc.) (the “Purchaser”), and Future Shop Ltd., a British Columbia, Canada corporation (the “Company”).  Pursuant to the Support Agreement, the Purchaser will commence a cash takeover bid to acquire all of the issued and outstanding shares of common stock of the Company (the “Company Common Stock”) at a price of CDN$17.00 per share (the “Offer”).

             On August 23, 2001, Best Buy commenced the Offer and mailed to the shareholders of the Company a Takeover Bid Circular.  The Offer expires on October 4, 2001 (the “Expiry Time”).

             Closing of the Offer is subject to the satisfaction of certain closing conditions, including there being validly tendered at least 66 2/3% of the Company’s Common Stock and approval of the Canadian government under the Competition Act (Canada) and the Investment Canada Act.  Shareholders holding approximately 68.6% of the outstanding Company Common Stock have agreed to tender their shares in accordance with a Lock-Up Agreement.

             Following completion of the Offer, there will be an amalgamation, a plan or arrangement or other transaction to acquire all shares of the Company Common Stock not purchased in connection with the Offer (the “Subsequent Acquisition”).  In the Subsequent Acquisition, all shares of the Company Common Stock not tendered to the Purchaser in the Offer will be converted into the right to receive the cash amount payable in the Offer, without interest.  In the event that the Offer has been accepted by holders of less than 90% of the shares (excluding shares held by Best Buy, the Purchaser and their respective affiliates), the Purchaser will cause a special meeting of the shareholders of the Company to be called to consider the Subsequent Acquisition.

             The Company will pay Best Buy a fee of CDN $24.0 million if the Offer is terminated or unsuccessful under certain conditions described in the Support Agreement.  These conditions include, in summary form, but are not limited to: (1) the Board of Directors of the Company withdrawing, modifying or changing its approval or recommendation of the Offer in a manner adverse to Best Buy; (2) the Board of Directors of the Company recommending to its shareholders a third party’s business combination proposal; or (3) the Company failing to reaffirm its recommendation of the Support Agreement within ten (10) days of Best Buy’s request to the Company’s Board of Directors to do so following a public announcement of a third party’s acquisition proposal for the Company and thereafter entering into an acquisition agreement with the third party.