BlockBuster Online™ Opens Eight New Distribution Centers Across the Country

Rent DVD Movies for $9.99 a Month

► BLOCKBUSTER Online™ Increases Breadth of Titles to 40,000

► Moves forward with Plans to Integrate Online and Store-based Operations

DALLAS, June 7 -- Addressing growing demand for its service, BLOCKBUSTER Online(TM) has opened eight new distribution centers across the United States. The completion of this latest round of expansion brings BLOCKBUSTER Online's distribution network to 30 facilities, tripling distribution capacity from when BLOCKBUSTER Online launched just nine months ago in August 2004.

"Consumers are embracing the service, and we ramped up faster than we expected, adding more than 750,000 subscribers in the first seven months," said Shane Evangelist, senior vice president and general manager of BLOCKBUSTER Online. "This latest distribution center expansion is not only an indication of our remarkable growth, but more importantly translates into enhanced delivery for our customers."

The new facilities are located in Edison, N.J.; Baton Rouge, La.; Kansas City, Mo.; Las Vegas, Nev.; Louisville, Ky.; Pittsburgh, Pa.; Portland, Ore.; and Rochester, N.Y. The high-quality, low-price online DVD rental provider opened 12 additional distribution centers nationwide between November 2004 and January 2005.

At the same time, the company is moving forward with plans to integrate its online and store-based operations and expects to begin fulfilling online orders through its store network by the end of the year, further enhancing delivery times and cost efficiencies.

BLOCKBUSTER Online also has increased its online rental library to more than 40,000 titles, providing subscribers with one of the most comprehensive online title selections available.
"Whether you want independent, foreign, TV shows, the classics or the hottest new releases, we offer movies to meet the individual tastes of everyone in your household," Evangelist said.

BLOCKBUSTER Online allows customers to select their movies online and receive and return unlimited DVDs by mail, up to three movies at a time, with no return dates or late fees, for one low monthly fee of $14.99 plus tax. Subscribers also receive two free in-store movie or game rentals per month, redeemable at participating BLOCKBUSTER stores. Consumers can log on to http://www.blockbuster.com to sign up for a free two-week trial of the three-movie- out plan from BLOCKBUSTER Online.

About BLOCKBUSTER

Blockbuster Inc. (NYSE: BBI, BBI.B) is a leading global provider of in- home movies and game entertainment, with more than 9,000 stores throughout the Americas, Europe, Asia and Australia. The company can be accessed worldwide at blockbuster.com.