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To: Jonathan Brown who wrote (881)	7/30/1998 5:23:00 PM
From: Jeff Jing	Read Replies (1) \| Respond to of 19700

CMG @Ventures, Intel and Paul Allen's Vulcan Ventures Invest in Hollywood Entertainment CMG Takes Major Position in Hollywood Entertainment ANDOVER, Mass.--(BUSINESS WIRE)--July 30, 1998--Commensurate with today's acquisition of Reel.com Inc., the largest video store on the Web, by Hollywood Entertainment Corp.(NASDAQ:HLYW - news), CMG @Ventures (NASDAQ:CMGI - news), Intel Corp.(NASDAQ:INTC - news), Vulcan Ventures and private investor Scott Beck announced they will purchase 5 million shares of Hollywood Entertainment Common Stock. In addition to the stock received from the sale of Reel.com, CMG will convert its 34 percent stake in Reel.com into stock in Hollywood Entertainment. The transaction will make CMG Inc. the largest shareholder in Hollywood Entertainment. Hollywood Entertainment is the second largest video rental chain in the United States. By purchasing Reel.com, which operates the leading video store on the Internet, the Company obtains a major competitive advantage in the entertainment segment of the electronic commerce market. Reel.com's movie information, selection, pricing and convenience has established it as the preferred place to shop for movies on the Internet. Commenting on the transaction, CMG's CEO David Wetherell said, ''By combining the largest video store on the Web with the 25 million Hollywood Entertainment customers, a new video powerhouse will be created, ensuring strong growth for both Web traffic and retail traffic.'' Mark Wattles, chairman and CEO of Hollywood Entertainment said, ''Reel.com's Web and e-commerce capabilities provide an important addition to Hollywood Entertainment's extensive retail business.'' Wattles added, ''Soon customers will be able to visit us on the Web, browse our selection and check availability or hold a video at their local Hollywood Entertainment store. And if their selection is out at their preferred store, we can automatically suggest the next-best location and hold their video there.'' The Investor Group CMG Information Services, Inc. is an investor and developer of Internet companies which operates direct marketing companies along with Internet companies and venture funds focused on the Internet. Intel is the world's leading supplier of microprocessors used in personal computers. Over 80 percent of the personal computers in use around the world today are based on Intel Architecture microprocessors. Vulcan Ventures Inc. of Bellevue, Washington is Paul G. Allen's investment vehicle focused on companies which offer products, services or technologies that fit his wired world strategy. Paul Allen co-founded Microsoft Corporation [Nasdaq:MSFT - news]. Scott Beck is the former chief executive officer of Boston Market and previously vice chairman of Blockbuster Entertainment. Joining the Hollywood Entertainment Board of Directors from this group will be David Wetherell of CMG and Scott Beck. About Hollywood Entertainment Corp. Hollywood Entertainment Corp., (NASDAQ:HLYW - news) operates the second largest video store chain in the United States, with over 1,000 superstores in 43 states. Hollywood Video superstores average approximately 7,500 square feet and typically carry approximately 10,000 titles and 16,000 videocassettes. According to video industry analysts at Paul Kagan Associates, Inc., Hollywood Entertainment operates the highest volume stores in the country. The company opened 121 new stores in 1995, 250 new stores in 1996, 356 new stores in 1997, and is currently opening a store a day. About CMG Information Services CMG Information Services, Inc. (NASDAQ:CMGI - news) is an incubator and developer of Internet companies. In addition, CMGI operates direct marketing companies and venture funds focused on the Internet. Microsoft, Intel and Sumitomo hold minority positions in CMG Information Services. The CMG Internet Group is made up primarily of majority-owned subsidiary companies including Planet Direct, NaviSite, Engage Technologies, Accipiter, ADSmart, InfoMation, The Password and Magnitude Networks.