Blockbuster and NCR Announce Strategic Alliance to Launch DVD Vending Kiosks

Blockbuster and NCR Announce Strategic Alliance to Launch DVD Vending Kiosks

First Stage of Deployment to Begin in Third Quarter of 2008, With Opportunity for Larger Scale National Rollout

Vending Kiosks Allow for Future Applications like Digital Downloads

DALLAS and DAYTON, Ohio, Aug. 4 /PRNewswire-FirstCall/ -- Blockbuster Inc. (NYSE:BBI)(NYSE:BBI.B), a leading global provider of media entertainment, and NCR Corporation (NYSE:NCR), a global leader in self-service and assisted-service technology, have entered into an agreement to deploy Blockbuster-branded, state-of-the-art DVD vending kiosks in a pilot program that could be the first step of a national rollout of thousands of units.

The initial deployment of 50 Blockbuster-branded kiosks should begin in the third quarter of 2008 with all units expected to be installed by year-end. The pilot vending kiosks will initially offer DVD rentals, but the machines will allow for future applications, including digital downloads, and other services, such as sales of DVDs and video games. The companies have not announced the markets or site locations for the first units.

Earlier this year, Blockbuster and NCR announced an agreement to test digital movie downloading kiosks in select Blockbuster locations. The first of those units is expected to be installed in two Dallas stores this summer.

"With NCR's advanced technology, these machines will dispense a wide array of DVDs and could offer digital downloading in the future, all under the Blockbuster brand," said Jim Keyes, Blockbuster chairman and CEO. "This initial rollout provides consumers increasingly convenient access to their favorite movies and is one more step in the fulfillment of our mission to transform Blockbuster into a multi-channel provider of media entertainment."

"This alliance with Blockbuster is an exciting step for NCR as we pursue our mission of becoming the leader in the market for entertainment self- service solutions," said Bill Nuti, NCR chairman and CEO. "Looking beyond this initial deployment, our mutual goal is to have 10,000 kiosks installed within 18 months. We are energized and thrilled to be such an integral part of Blockbuster's strategy for providing consumers with greater choice and convenience."

Analysts are projecting DVD vending kiosks could grow by more than 60 percent over the next three years, increasing from 9,300 units at the end of 2007 to more than 22,400 by the end of 2010. Additionally, consumer spending on movies from vending machines during that same period is expected to grow from $197 million to more than $760 million.

About Blockbuster

Blockbuster Inc. (NYSE:BBI)(NYSE:BBI.B) is a leading global provider of in-home movie and game entertainment, with more than 7,700 stores throughout the Americas, Europe, Asia and Australia. The company may be accessed worldwide at http://www.blockbuster.com/.

About NCR Corporation

NCR Corporation (NYSE:NCR) is a global technology company leading how the world connects, interacts and transacts with business. NCR's assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, healthcare, hospitality, gaming and public sector organizations in more than 100 countries. NCR (http://www.ncr.com/) is headquartered in Dayton, Ohio.

Forward-Looking Statements

This release and our related earnings conference call include forward- looking statements related to our operations and business outlook and financial and operational strategies and goals. Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These forward-looking statements are based on management's current intent, belief, expectations, estimates and projections regarding our company and our industry. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict. Therefore, actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Factors that may cause actual results to vary materially include, among others: (1) consumer appeal of our existing and planned product and service offerings, and the related impact of competitor pricing and product and service offerings; (2) overall industry performance and the accuracy of our estimates and judgments regarding trends impacting the home video industry; (3) our ability to obtain favorable terms from suppliers, including on such matters as copy depth and uses of product; (4) the variability in consumer appeal of the movie titles and games software released for rental and sale; (5) our ability to respond to changing consumer preferences, including with respect to new technologies and alternative methods of content delivery, and to effectively adjust our offerings if and as necessary; and (6) other factors, as described in our filings with the Securities and Exchange Commission, including the factors discussed under the heading "Risk Factors" in our annual report on Form 10-K for the year ended January 6, 2008 and additional disclosures in our quarterly report on Form 10-Q for the quarter ended April 6, 2008 and in our quarterly report on Form 10-Q to be filed for the quarter ended July 6, 2008. This cautionary statement is provided pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release and in our related earnings conference call are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

First Call Analyst:
FCMN Contact: randy.hargrove@blockbuster.com

Source: Blockbuster Inc.; NCR Corporation

CONTACT: Press, Randy Hargrove, Senior Director, Corporate
Communications of Blockbuster Inc., +1-214-854-3190,
randy.hargrove@blockbuster.com; or Robert (Kelly) Kramer, Media Relations of
NCR Corporation, +1-770-623-7215, kelly.kramer@ncr.com; Investor Relations,
Angelika Torres, Director, Investor Relations of Blockbuster Inc.,
+1-214-854-4279

Web site: http://www.blockbuster.com/
http://www.ncr.com/

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