DOTHAN, Ala., March 19, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Movie Gallery, Inc.
(Nasdaq: MOVI) today announced that it will launch an online video rental
service in mid-to-late 2007. The pilot phase implementation will be a low-
cost "friends and family" program that will provide existing customers with
another easy way to rent movies. The Company believes that this new channel
will complement its retail brick and mortar business and enhance consumer
convenience and satisfaction.
Movie Gallery also announced today that it is extending its movie kiosk
program, which operates automated movie vending machines in supermarkets,
malls and other high traffic areas. The Company currently has approximately
74 kiosk units in operation under the Hollywood Video brand and plans to
rollout approximately 200 additional units during the course of 2007. The
kiosk units provide around the clock availability of movies with minimal
overhead and fixed costs.
"Together with our recently completed MovieBeam transaction, the
introduction of Movie Gallery's online video rental service and the extension
of our movie kiosk program demonstrate our commitment to providing our
customers with movies how they want them, when they want them and where they
want them," said Joe Malugen, Chairman, President and Chief Executive Officer
of Movie Gallery. "While we firmly believe that our retail brick and mortar
stores will remain the foundation of our business, over the past three years
we have been diligently pursuing alternative delivery platforms to further
complement our base business. After considerable research and testing, we
believe that we can enter into the online space in a cost-effective manner
without spending significant resources on advertising to acquire new
customers. Our goal is to increase customer satisfaction and retention by
providing consumers with the benefits of greater choice and convenience."
About Movie Gallery
Movie Gallery is the second largest North American video rental company
with over 4,600 stores located in all 50 U.S. states and Canada operating
under the brands Movie Gallery, Hollywood Video and Game Crazy. The Game
Crazy brand represents 633 in-store departments and 17 free-standing stores
serving the game market in urban locations across the United States. Since
Movie Gallery's initial public offering in August 1994, the Company has grown
from 97 stores to its present size through acquisitions and new store
openings. For more information about the Company, please visit our website
Forward Looking Statements
To take advantage of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, you are hereby cautioned that this
release contains forward-looking statements, including statements regarding
the Company's plans and intentions for the Company's online video rental
service and plans regarding new technologies, including kiosk units and
MovieBeam, that are based upon the Company's current intent, estimates,
expectations and projections and involve a number of risks and uncertainties.
Various factors exist which may cause results to differ from these
expectations. These risks and uncertainties include, but are not limited to,
risks related to the integration of acquisitions generally and the risk
factors that are discussed from time to time in the Company's SEC reports,
including, but not limited to, the Company's annual report on Form 10-K for
the fiscal year ended December 31, 2006. The Company undertakes no obligation
to update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Analysts and Investors: Michelle K. Lewis, Movie Gallery, Inc.,
Media: Andrew B. Siegel of Joele Frank, Wilkinson Brimmer Katcher,
212-355-4449 ext. 127
SOURCE Movie Gallery, Inc.
Michelle K. Lewis of Movie Gallery, Inc., +1-503-570-1950; or Andrew B. Siegel of
Joele Frank, Wilkinson Brimmer Katcher, for Movie Gallery, Inc., +1-212-355-4449 ext.