Movie Gallery to Introduce Online Video Rental Service

movie gallery web screenshotMovie Gallery, Inc. 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 (Nasdaq: MOVI) 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 at:

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