Source Interlink Companies Lands New DVD, Magazine and Book Business in More Than 1,000 West Coast Stores

Source Interlink Companies Lands New DVD, Magazine and Book Business in More Than 1,000 West Coast Stores

New agreements add approximately $30 million in annual run rate revenue and showcase company's cross-selling capabilities

BONITA SPRINGS, Fla., Nov. 4 /PRNewswire-FirstCall/ -- Source Interlink Companies, Inc. (NASDAQ:SORC), a premier provider of family entertainment products and marketing services, announced today a series of new and expanded relationships with key retail customers across its platform of home entertainment product distribution and fulfillment services that are scheduled to roll out over the next several months. The new agreements showcase the company's efforts to drive revenue synergies across its broad, diversified home entertainment product portfolio and efficient nationwide distribution platform.

New agreements include:

* DVD distribution and fulfillment services at two leading Western
supermarket chains totaling more than 600 stores and almost 42,000 DVD
display positions, including approximately 30,000 display positions at
checkout at Ralph's supermarket stores in California and southern
Nevada.

* Magazine distribution and fulfillment services at 32 Fry's Electronics
stores in California, Texas, Arizona and elsewhere. Source Interlink
currently distributes CDs and DVDs through its Alliance division to
Fry's stores nationally.

* Magazine distribution and fulfillment services to an additional 386
Walgreens locations in southern California. With this additional
business, Source Interlink now distributes magazines and books to
more than 1,300 Walgreens locations, and CDs and DVDs to 2,500
Walgreens locations nationwide.

* Exclusive U.S. magazine and comic book distribution and fulfillment
services to all Virgin Megastores nationwide. Source Interlink had
previously serviced Virgin Megastores in combination with other
distributors, but now becomes the retail chain's exclusive U.S.
magazine and comic book supplier.

James R. Gillis, President and COO of Source Interlink, commented, "This new business we're announcing today should drive $30 million or more in additional annual revenue for Source, and more importantly, demonstrates the true capacity of our new scaled national platform across general merchandise, drug, grocery and specialty retail chains. As a result of the consolidation of Source Interlink, Alliance Entertainment and Chas. Levy Circulating Co., we are now able to cross-sell a full suite of home entertainment products and services to our client base, creating efficient and cost-effective solutions for our retail customers and raising our own revenue and profit potential. These new and expanded relationships illustrate the value of our strategic positioning. We can provide a comprehensive marketing and distribution system of magazines, CDs, DVDs, and books to retailers on a national level. As we continue to implement our strategy, we will pursue additional cross-category penetration and we expect to see further market share gains in the near future."

About Source Interlink

Source Interlink Companies is a premier marketing, merchandising and fulfillment company of entertainment products including DVDs, music CDs, magazines, books and related items. The company's fully integrated businesses include:

-- Distribution and fulfillment of entertainment products to major
retail chains throughout North America and direct-to-consumers via
the Internet
-- Import and export of periodicals sold in more than 60 countries
worldwide
-- Coordination of product selection and placement for impulse items
sold at checkout counters
-- Processing and collection of rebate claims as well as management of
sales data obtained at the point-of-purchase
-- Design, manufacture and installation of wire fixtures and custom wood
displays in major retail chains

Source Interlink serves approximately 110,000 retail store locations throughout North America. Supply chain relationships include movie studios, record labels, magazine and newspaper publishers, confectionary companies and manufacturers of general merchandise. For more information, please visit the company's website at http://www.sourceinterlink.com/.

This press release contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995, including statements relating to, among other things, future business plans, strategies and financial position, working capital and capital expenditure needs, growth opportunities, and any statements of belief and any statements of assumptions underlying any of the foregoing.

These forward-looking statements reflect Source Interlink's current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements. Factors that could cause actual results to differ include: (i) market acceptance of and continuing retail demand for magazines, books, DVDs, CDs and other home entertainment products; (ii) our ability to realize operating efficiencies, cost savings and other benefits from recent acquisitions, (iii) an evolving market entertainment media, (iv) the ability to obtain product in sufficient quantities; (v) adverse changes in general economic or market conditions; (v) the ability to attract and retain employees; (vi) intense competition in the marketplace and (vii) other events and other important factors disclosed previously and from time to time in Source Interlink's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 18, 2005.

Source Interlink does not intend to, and disclaims any duty or obligation to, update or revise any forward-looking statements or industry information set forth in this press release to reflect new information, future events or otherwise.

Source: Source Interlink Companies, Inc.

CONTACT: Investors: Dean Heine, Investor Relations of Source Interlink
Companies, Inc., +1-212-683-0376, dheine@sourceinterlink.com; or Todd St.
Onge, stonge@braincomm.com, or Media: Kim Holt, holt@braincomm.com, both of
Brainerd Communicators, +1-212-986-6667, for Source Interlink Companies, Inc.

Web site: http://www.sourceinterlink.com/

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