Media 8 Entertainment and Blockbuster Inc. Enter Into Business Arrangement

Media 8 Entertainment and Blockbuster Inc. Enter Into Business Arrangement

LOS ANGELES, Dec. 7 /PRNewswire/ -- Media 8 Entertainment, a leading film entertainment company engaged in the production, financing, acquisition, and worldwide licensing of theatrical feature films, and Blockbuster Inc., a leading global provider of in-home movie and game entertainment, today announced the commencement of a comprehensive long-term business arrangement between the two companies. "We are very happy to enter into this arrangement with Media 8," said Matthew Smith, Senior Vice President Media Development & Studios for Blockbuster. "Media 8 has produced an exceptional slate of independent theatrical product, and we welcome the opportunity this deal gives us to benefit from, and to help Media 8 maintain and enhance, its flow of these high quality theatrical films."

"We are exceedingly pleased with this new business association with Blockbuster and look forward to a mutually beneficial relationship over the coming years," said Stewart Hall, President of Media 8 Entertainment. "As we assemble and go into production on our next slate of films, it's of great value to know that this relationship will significantly strengthen the commercial prospects of our future projects."

Media 8 has also entered into agreements to secure the continued employment of certain officers and other key personnel necessary to the ongoing activities of the company.

This press release contains forward-looking statements. These statements are forward-looking as they are based on our current expectations about our business and the markets we operate in, and on various estimates and assumptions. Such statements include words such as "anticipate", "believe", "plan", "estimate", "expect", "intend", "will", "should", "may", and other similar expressions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Some factors that could cause actual results to differ materially from those set forth in the forward-looking statements are: audience acceptance of our filmed entertainment, actions of our competitors, cost of production financing, the loss of key personnel, and our relationship with filmed entertainment content suppliers and distributors. Other risks and factors that could cause actual results to differ are described in Management's Discussion and Analysis ("MD&A") for the periods ended December 31, 2005 under the headings "Risk and Uncertainties". The company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

First Call Analyst:
FCMN Contact:

Source: Media 8 Entertainment

CONTACT: Devin Cutler, Vice President of Finance and Controller,
+1-310-226-8314, or Pierre Kurland, Director of Financial Reporting,
+1-310-226-8336, both of Media 8 Entertainment

Web site:

http://www.media8ent.com/

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