Blockbuster and Warner Bros. Announce New Agreement

Blockbuster and Warner Bros. Announce New Agreement

Continued Availability of New Titles on the Day of Release in Stores and By-mail

DALLAS, March 23 /PRNewswire-FirstCall/ -- Blockbuster Inc. (NYSE:BBI)(NYSE: BBI.B), a leading global provider of media entertainment, announced a new agreement that continues to provide immediate availability of Warner Bros. titles, with Academy Award-winning The Blind Side available on March 23, in BLOCKBUSTER® stores and by-mail. The digital agreement already in place remains unchanged. On March 30, Blockbuster will have Sherlock Holmes available for immediate release.

"This new agreement reflects our strategy to be the only multi-channel provider for movies. We are excited to offer our customers the best home entertainment from Warner Bros., such as The Blind Side and Sherlock Holmes, with significantly greater availability in BLOCKBUSTER® Stores and through BLOCKBUSTER By Mail, as well as digitally through BLOCKBUSTER On Demand®," said James W. Keyes, Chairman and Chief Executive Officer, Blockbuster Inc. "This agreement reinforces Blockbuster's position as the most convenient source for new movies, and we are pleased to offer our customers the opportunity to get hot new movies as soon as they are released. This gives Blockbuster a full four week lead before either kiosk or other subscription services can offer any Warner Bros. titles."

"Warner Bros. and Blockbuster have enjoyed a cooperative and successful relationship for more than 25 years," said Ron Sanders, president, Warner Home Video. "The updated agreement will continue to provide Blockbuster customers with access to Warner Bros. titles the same day they are released."

The new agreement, which covers DVD and Blu-ray, means Blockbuster is the only multi-channel provider that has every hot new movie on the day of its release. For example, customers can rent a movie like The Blind Side through its BLOCKBUSTER By Mail service, return it next week to a BLOCKBUSTER® store after watching, and pick up Sherlock Holmes for more family entertainment. In addition, customers can access these movies through BLOCKBUSTER Direct Access®, a new service that gives store customers access to the more than 95,000 titles carried in Blockbuster's distribution centers. For those customers with BLOCKBUSTER On Demand®-enabled devices such as PCs, over 40 different Samsung products and most TiVos, these new Warner Bros. movies will continue to be available digitally simultaneous with their release on DVD and Blu-ray.

Warner Bros. is currently a leader in many home video categories including total video (DVD and Blu-ray combined), Theatrical Catalog video, TV on DVD, and Blu-ray.

About Blockbuster Inc.

Blockbuster Inc. is a leading global provider of rental and retail movie and game entertainment. The company provides customers with convenient access to media entertainment anywhere, any way they want it - whether in-store, by-mail, through vending kiosks or digitally to their homes and mobile devices. With a highly recognized brand and a library of more than 125,000 movie and game titles, Blockbuster leverages its multichannel presence to serve nearly 47 million global customers annually. The company may be accessed worldwide at www.blockbuster.com.

About Warner Bros. Home Entertainment Group

Warner Bros. Home Entertainment Group (WBHEG) brings together Warner Bros. Entertainment's home video, digital distribution, interactive entertainment, technical operations and anti-piracy businesses in order to maximize current and next-generation distribution scenarios. An industry leader since its inception, WBHEG oversees the global distribution of content through packaged goods (Blu-ray Disc and DVD) and digital media in the form of electronic sell-through and video-on-demand via cable, satellite, online and mobile channels, and is a significant developer and publisher for console and online video game titles worldwide. WBHEG distributes its product through third party retail partners and licensees, as well as directly to consumers through WBShop.com.

Source: Blockbuster Inc.

CONTACT: Media, Michelle Metzger of Pierpont Communications,
+1-214-217-7300, mmetzger@piercom.com, for Blockbuster Inc.; or Investor
Relations, Kellie Nugent, Director, Investor Relations of Blockbuster Inc.,
+1-214-854-4442, kellie.nugent@blockbuster.com

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

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