Movie Gallery, Inc. today issued the following statement in
response to the announcement that the Special Committee and Board of
Directors of Hollywood Entertainment rejected the Blockbuster, Inc.
exchange offer and reaffirmed their earlier recommendation that all
Hollywood shareholders vote to approve the previously announced
definitive merger agreement with Movie Gallery.
We are pleased that Hollywood's Board of Directors has rejected the
exchange offer proposed by Blockbuster and reaffirmed its recommendation
that Hollywood shareholders vote to approve the merger with Movie
Gallery. We concur with its recommendations, and we continue to believe