Competition makes a move to e-Commerce:
Launch of E-Commerce Site Slated For September 20, 1999
Movie Gallery Announces Content Partnerships for MovieGallery.com
DOTHAN, Ala.--(BUSINESS WIRE)--Sept. 13, 1999--Movie Gallery, Inc., (Nasdaq: MOVI - news) today announced it expects to launch moviegallery.com, its customer-oriented, information-rich web site, on September 20, 1999.
``We have created a destination web site that offers an entertaining and information-filled experience,' said Joe Malugen, Chief Executive Officer of Movie Gallery. ``Our goal is to provide customers with useful information while building the Company's brand name, revenues and long-term profitability.'
``The web site was created in collaboration with iSyndicate, Alliance Entertainment Corp. and Mapquest,' said Will Guerrette, Movie Gallery.com's Chief Operating Officer. ``The partners we have selected provide content that will make the MovieGallery.com shopping experience fun, easy and informative. They will enable us to grow our e-commerce revenues and profits by integrating their services with Movie Gallery's core business.
``These agreements allow Movie Gallery to focus on developing greater distribution, merchandising and promotional programs for consumers that are in the market to buy DVDs, new or previously viewed videos or games. We will draw visitors to our web site with up-to-the-minute news through iSyndicate, content and internet consumer fulfillment through Alliance Entertainment and our physical store locations through Mapquest. We expect to establish the credibility of MovieGallery.com by providing our customers with an experience that satisfies their information requirements. By providing them up-to-date information, promotions and excellent pricing, we expect to encourage repeat customers, attract new visitors and enhance sales.
``Consumers who are interested in movies and games demand a complete and in-depth experience. They want to read news, get reviews, search through titles, find pictures of their favorite celebrities and movies and buy the product when they are ready. We selected iSyndicate, the leader in content syndication, to provide MovieGallery.com with specially selected articles and up-to-the-minute news feeds and photos. With access to more than 500 third-party content sources, iSyndicate aggregates relevant, customized content packages of carefully selected articles, news feeds and other content products based on the individual customer's pre-defined criteria. This content package is then seamlessly integrated into our web site, allowing us to maintain our site's branding and page layout.
``We chose to partner with Alliance Entertainment for the unique combination of product and content that it offers. In addition to providing MovieGallery.com with video, DVD and game product through its AEC-One Stop division, Alliance's All-Media Guide will provide the world's largest and most complete film, video DVD and game database. The database, which will be seamlessly integrated into the MovieGallery.com site, chronicles over 150,000 films and documentaries, of which 115,000 are feature films and over 20,000 are games. It contains more than 2,000,000 cast and production credits, over 240,000 distinct personnel names and 21,000 biographies of actors and directors. Extensive plot summaries, plot line categories and search options make finding and exploring movies easy and enjoyable.' Game coverage includes all popular game platforms with over 6,000 reviews.
Movie Gallery has also integrated store location information from MapQuest.com, Inc. in the web site so consumers can easily find the Company's 900 brick and mortar locations. ``We are continually searching for ways to add services to enhance Movie Gallery's relationship with its 13 million members in 29 states,' added Mr. Guerrette. ``MapQuest.com provides us with the most comprehensive site for mapping, directions and destination planning at the local community level. For example we have experienced the success of 'Pizza and a Movie`` promotions in our stores. We can complement these promotional and co-marketing activities in local markets by providing directions and best routes around a city on the way to our physical locations. Besides researching movies in our comprehensive database, customers can find films they wish to watch, locate the store nearest their home, complete with address and phone number, and call the store to have the movie held for pick-up.'
To take advantage of the ``safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, you are hereby cautioned that this release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. These risk factors include the risk factors that are discussed from time to time in the Company's SEC reports, including, but not limited to, the report on Form 10-K for the fiscal year ended January 3, 1999.
Movie Gallery currently owns and operates a total of 901 video specialty stores located in 29 states. The Company is among the three largest video specialty retailers in the United States and is the leading provider of video and video game rental and sales in rural and secondary markets in the United States.
iSyndicate, (www.isyndicate.com), the Internet Content Marketplace, is the leading provider of dynamic and relevant Web content designed to help drive commerce and build community on the Internet. Today, the company aggregates, packages, integrates and delivers a breadth of content including audio, video, animations, interactive games, comics and weather from more than 500 trusted sources including Reuters NewMedia, Time, Salon, Fortune, CNET, The Associated Press, Rolling Stone and CBS Sportsline, all in real-time. This content is delivered by iSyndicate to more than 100,000 affiliated web sites, including GeoCities, Xoom.com, Citibank, Netscape, Clairol, PeopleSoft, Nintendo, Nortel and NationsBank. iSyndicate supports the ICE (Information & Content Exchange) standard based on XML among a variety of others for all of its content.
Alliance Entertainment Corp. (www.aent.com) is one of the largest domestic full-service distributors of pre-recorded music, video, DVD, game and related accessories and a developer of e-commerce enabling databases and proprietary Web Sites. Alliance's core distribution business serves the entertainment industry, supplying both ``brick and mortar' stores and e-commerce retailers. Its well-established systems and fulfillment infrastructure provide retail customers with a wide array of real-time fulfillment services and product selections. The company is also a leading Internet-based content provider through the All Media Guide (AMG) databases. AMG's customers license its e-commerce enabling databases to support their Internet retailing businesses. In addition to licensing these databases to third parties, Alliance is a developer of proprietary Web sites for music (www.allmusic.com), movies (www.allmovies.com), and games (www.allgames.com). Alliance's allmusic.com was awarded ``Best Music Reference Site' by Yahoo Internet Life in 1998.
MapQuest.com, Inc. (NASDAQ: MQST - news) is the leader in destination information solutions and digital mapping services. The company launched its popular Web site (www.mapquest.com) on February 5, 1996. Today, MapQuest.com receives more than 3.9 million unique visitors monthly to its consumer Web site. In June of 1999, over 12 million Internet users accessed the MapQuest.com network, equating to a 19.7% reach of the entire web audience. As part of its business-to-business services, MapQuest.com helps businesses integrate maps and driving directions into their Internet, intranet and call center applications for improved marketing and customer service functions. MapQuest.com has developed a diverse network of more than 600 business partners, including: Yahoo (YHOO), Lycos (LCOS), Infoseek (SEEK), Excite @Home (ATHM), AOL Digital City (AOL), CitySearch (TMCS), Travelocity (TSG), Bank of America (BAC), MasterCard, Kinko's and Dayton Hudson (DH).
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Contact:
Movie Gallery Inc., Dothan
J. Steven Roy, Executive Vice President and
Chief Financial Officer, 334/677-2108
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