SCHEDULE I

GUITAR CENTER HOLDINGS, INC. (PARENT COMPANY ONLY)

CONDENSED BALANCE SHEETS

(in thousands, except par values)

	December 31, 2012			December 31, 2011
Assets
Investment in Guitar Center, Inc.	$	127,925		$	123,275
Receivable from Guitar Center, Inc.	224,113			303,715
Deferred income taxes	77,993			73,581
Other assets, net	2,197			2,610
Total assets	$	432,228		$	503,181

Liabilities and Stockholders’ Deficit
Current liabilities:
Accrued interest	$	16,575		$	16,575
Current portion of long-term debt	129,784			—
Total current liabilities	146,359			16,575
Long-term debt	434,889			564,673
Total liabilities	581,248			581,248
Commitments and contingencies	—			—
Stockholders’ deficit:
Preferred stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding	—			—
Common stock, $0.01 par value, 20,000 shares authorized, 9,740 and 9,742 shares issued and outstanding, respectively	97			97
Additional paid-in capital	633,800			632,757
Accumulated deficit	(782,917		)	(710,748		)
Accumulated other comprehensive loss	—			(173		)
Total stockholders’ deficit	(149,020		)	(78,067		)
Total liabilities and stockholders’ deficit	$	432,228		$	503,181

See accompanying notes to condensed financial statements

The combined notes to consolidated financial statements of Guitar Center Holdings, Inc. and Subsidiaries and Guitar Center, Inc. and Subsidiaries are an integral part of these statements.

SCHEDULE I

GUITAR CENTER HOLDINGS, INC. (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

	Year ended December 31,
	2012			2011			2010
General and administrative expenses	$	—		$	277		$	—
Interest expense	79,975			79,973			74,391
Equity in net income (loss) of Guitar Center, Inc., net of income tax	3,395			(153,705		)	(8,864		)
Loss before income taxes	(76,580		)	(233,955		)	(83,255		)
Income tax expense (benefit)	(4,411		)	2,984			(26,878		)
Net loss	(72,169		)	(236,939		)	(56,377		)
Equity in other comprehensive income (loss) of Guitar Center, Inc., net of income tax	173			210			(440		)
Comprehensive loss	$	(71,996	)	$	(236,729	)	$	(56,817	)

See accompanying notes to condensed financial statements

The combined notes to consolidated financial statements of Guitar Center Holdings, Inc. and Subsidiaries and Guitar Center, Inc. and Subsidiaries are an integral part of these statements.

SCHEDULE I

GUITAR CENTER HOLDINGS, INC. (PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Year ended December 31,
	2012			2011			2010

Operating activities:
Net loss	$	(72,169	)	$	(236,939	)	$	(56,377	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in net (income) loss of Guitar Center, Inc.	(3,395		)	153,705			8,864
Amortization of deferred financing fees	412			410			400
Non-cash interest expense	19,891			8,288			57,415
Deferred income taxes	(4,411		)	2,984			(26,878		)
Changes in operating assets and liabilities:
Accrued expenses and other current liabilities	—			(8,288		)	16,576
Net cash used in operating activities	(59,672		)	(79,840		)	—

Financing activities:
Repurchase of common stock	(39		)	(286		)	(729		)
Financing fees	—			(902		)	—
Repayments from Guitar Center, Inc.	59,711			81,028			729
Net cash provided by financing activities	59,672			79,840			—
Net change in cash	—			—			—
Cash at beginning of year	—			—			—
Cash at end of year	$	—		$	—		$	—

Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	59,672		$	79,562		$	—
Income taxes	—			—			—

See accompanying notes to condensed financial statements

The combined notes to consolidated financial statements of Guitar Center Holdings, Inc. and Subsidiaries and Guitar Center, Inc. and Subsidiaries are an integral part of these statements.

SCHEDULE I

GUITAR CENTER HOLDINGS, INC. (PARENT COMPANY ONLY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

1. Basis of Presentation

Schedule I, Condensed Financial Information of Registrant, is required in Securities and Exchange Commission (“SEC”) filings when restricted net assets of consolidated subsidiaries exceed 25% of consolidated net assets at the end of the most recent fiscal year. The restricted net assets of Guitar Center, Inc. were $243 million as of December 31, 2012.

Pursuant to the rules and regulations of the SEC, the condensed parent company financial statements do not include all of the information and notes normally included with financial statements prepared in accordance with United States generally accepted accounting principles. In addition, for purposes of this schedule, the investment in wholly-owned subsidiary, Guitar Center, Inc., is accounted for using the equity method of accounting, which is not in accordance with United States generally accepted accounting principles. The condensed financial statements of the parent company should be read in conjunction with the consolidated financial statements of Guitar Center Holdings, Inc. and Guitar Center, Inc. and the combined notes thereto.

2. Dividends from Subsidiary

The parent company did not receive any dividends from Guitar Center, Inc. during 2012, 2011 or 2010.

3. Long-Term Debt

The terms and future maturities of the parent company’s long-term debt are presented in Note 5 of the combined notes to consolidated financial statements of Guitar Center Holdings, Inc. and Guitar Center, Inc.

Holdings’ interest payments on the senior PIK notes are funded by repayments received from Guitar Center, Inc. on intercompany debt. Interest payments due on the senior PIK notes totaled $79.6 million in 2012. Interest payable in 2012 was settled with cash payments of $59.7 million and a reinvestment by the holders of the senior PIK notes in newly issued Guitar Center, Inc. senior notes totaling $19.9 million.

4. Litigation, Contingencies and Commitments

See Note 12 of the combined notes to consolidated financial statements of Guitar Center Holdings, Inc. and Guitar Center, Inc. for a discussion of litigation contingencies.

The parent company did not have any separate material long-term obligations or guarantees as of December 31, 2012.