Movie Gallery Issues Statement Regarding Its Pending Acquisition of Hollywood Entertainment
25 Marzo 2005 - 5:02PM
PR Newswire (US)
Movie Gallery Issues Statement Regarding Its Pending Acquisition of
Hollywood Entertainment DOTHAN, Ala., March 25
/PRNewswire-FirstCall/ -- Movie Gallery, Inc. (NASDAQ:MOVI) today
issued the following statement regarding Blockbuster's (NYSE:BBI)
announcement that its tender offer for Hollywood Entertainment
(NASDAQ:HLYW) has expired. Joe Malugen, Chairman, President and
Chief Executive Officer of Movie Gallery, said, "We believe that
Movie Gallery's definitive agreement to acquire Hollywood is in the
best interests of Hollywood's shareholders, employees, and
customers. Movie Gallery has already received regulatory approval
and we look forward to closing the Hollywood transaction promptly
after the Hollywood shareholder vote on April 22, 2005. "Our
combined company will be the second largest North American video
rental company with annual revenue of approximately $2.6 billion
and approximately 4,500 stores located in all 50 U.S. states,
Canada and Mexico. With a broader geographic presence and greatly
improved distribution capabilities and scale, our combined company
will be a strong competitor, well-positioned for continued success
in urban, suburban and rural markets," Mr. Malugen concluded.
Alston & Bird LLP and Axinn, Veltrop & Harkrider LLP acted
as anti-trust legal counsel to Movie Gallery. About Movie Gallery
Movie Gallery, Inc. is the third-largest company in the specialty
video retail industry based on revenues and the second-largest in
the industry based on stores. As of December 31, 2004, Movie
Gallery owned and operated 2,482 stores located primarily in the
rural and secondary markets throughout North America, including
over 200 stores in Canada. Since the company's initial public
offering in August 1994, Movie Gallery has grown from 97 stores to
its present size through acquisitions and new store openings.
Forward-Looking Statements This news release contains
forward-looking statements relating to Movie Gallery's intent to
acquire Hollywood Entertainment. Specific forward-looking
statements relate to Movie Gallery's expectations regarding the
potential benefits of such transaction, including the anticipated
benefits to Hollywood's shareholders, employees and customers.
These forward-looking statements are based on Movie Gallery's
current intent, expectations, estimates and projections and are not
guarantees of future performance. These statements involve risks,
uncertainties, assumptions and other factors that are difficult to
predict and that could cause actual results to vary materially from
those expressed in or indicated by them. In addition, some factors
are beyond Movie Gallery's control. Certain statements made in this
release are contingent upon completion of the proposed transaction.
Other factors that could cause actual results to differ materially
from the statements made in this release include, among others: (i)
matters related to closing conditions contained in the merger
agreement between Movie Gallery and Hollywood, including approval
of the Hollywood shareholders and conditions to the consummation of
the financing contemplated by the merger agreement; and (ii) other
factors as described in Movie Gallery's filings with the Securities
and Exchange Commission, including the detailed factors discussed
under the heading "Cautionary Statements" in Movie Gallery's annual
report on Form 10-K for the fiscal year ended January 2, 2005.
HOLLYWOOD STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY
STATEMENT REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES
AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.
Stockholders will be able to obtain a free copy of the definitive
proxy statement, as well as other filings containing information
about the parties, without charge, at the Securities and Exchange
Commission's Internet site ( http://www.sec.gov/ ). Copies of the
definitive proxy statement and the filings with the SEC that will
be incorporated by reference in the proxy statement will also be
available, without charge, by directing a request to Hollywood
Entertainment Corp., 9275 S.W. Peyton Lane, Wilsonville, Oregon
97070, Attn: Investor Relations. The directors and executive
officers of Hollywood and other persons may be deemed to be
participants in the solicitation of proxies in respect of the
transaction. Information regarding Hollywood's directors and
executive officers will be available in the definitive proxy
statement. Other information regarding the participants in the
proxy solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the definitive proxy statement and other relevant materials to be
filed with the SEC when they become available. Contacts: Financial
Thomas D. Johnson Movie Gallery, Inc. (334) 702-2400 Media Andrew
B. Siegel Joele Frank, Wilkinson Brimmer Katcher (212) 355-4449
ext. 127 DATASOURCE: Movie Gallery, Inc. CONTACT: Financial, Thomas
D. Johnson of Movie Gallery, Inc., +1-334-702-2400; or Media,
Andrew B. Siegel of Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449, ext. 127 Web site: http://www.moviegallery.com/
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