Court Issues Injunction to Protect Movie Gallery's Trademarked Brands

Court Issues Injunction to Protect Movie Gallery's Trademarked Brands

DOTHAN, Ala., Sept. 23 /PRNewswire/ -- Movie Gallery, Inc. ("Movie Gallery") today announced that the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division (the "Court") has issued a preliminary injunction against Boards Video Company, LLC and Boards Inc. (collectively "Boards"), enjoining them from further infringing on Movie Gallery's trademarks.

Movie Gallery, which owns the Hollywood Video and Game Crazy trademarks, brought the action in connection with Boards' failure to remove Hollywood Video and Game Crazy signage from the 20 video stores it operated under a License Agreement with Movie Gallery. On March 26, 2008 the Court issued an order requiring that Boards remove all signage bearing Movie Gallery's trademarks from its stores by August 31, 2008. In issuing the injunction, the Court found that Boards violated this order.

"We are pleased with the Court's order and are hopeful that Boards will cease its continuing violations," stated Sherif J. Mityas, Movie Gallery's Chief Operating Officer and President of Retail Operations. "The Hollywood Video and Game Crazy brands are well known and highly valuable. We will vigorously defend our brands and will not tolerate infringement on our trademarks."

The Court's decision requires that Boards remove all Hollywood Video and Game Crazy signage from its stores within seven days. Movie Gallery will also seek damages under the U.S. Federal Trademark Laws. In addition, the Company will pursue a permanent injunction against Boards, on the grounds that Boards' actions subject Movie Gallery's image, reputation, and market position to irreparable harm.

About Movie Gallery

Movie Gallery operates approximately 3,300 stores located in all 50 U.S. states and Canada operating under the brands Movie Gallery, Hollywood Video and Game Crazy. 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: www.moviegallery.com.

Contacts:
Analysts and Investors: Ted Ceglia, Movie Gallery, Inc., 503-570-1950

Media: Andrew B. Siegel or Meaghan A. Repko of Joele Frank, Wilkinson Brimmer Katcher, 212-355-4449

Source: Movie Gallery, Inc.

CONTACT: Analysts and Investors: Ted Ceglia, Movie Gallery, Inc.,
+1-503-570-1950, Media: Andrew B. Siegel, or Meaghan A. Repko, both of Joele
Frank, Wilkinson Brimmer Katcher, +1-212-355-4449

Web Site: http://www.moviegallery.com/

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