May 14^th, 2002 (12:00am) - Amid industry forecasts of double-digit growth in the interactive gaming market, Blockbuster Inc. (NYSE: BBI) today announced that it is launching a series of consumer programs and merchandising initiatives designed to make Blockbuster stores the leading one-stop retail and rental source in the interactive gaming market.

Beginning Memorial Day weekend, more than 4,300 company-operated Blockbuster stores and participating franchise stores will feature a new look for the games section. The dedicated floor space for games will be expanded in many store locations and each game platform, including GameCube, PlayStation 2, Xbox and GameBoy Advanced, will have its own section complete with rental, retail, previously-played product and a selection of accessories and publications, making it convenient for customers to find what they’re looking for.

"Blockbuster’s goal is to become the leading one-stop location for gamers who want to buy or rent their games," said Nick Shepherd, executive vice president and chief concept officer for Blockbuster Inc. "We have a brand that is already highly associated with games, the marketing ability, a large network of stores and an extensive database of millions of active gamers. We believe that we have developed unique rental and retail offerings that will allow us to achieve our goal."

Over the course of the next several months and in time for the 2002 holiday shopping season, Blockbuster will begin expanding its retail selection to include games, consoles and gaming accessories (including controllers, memory cards, extension cables and publications). Additionally, Blockbuster will introduce a "Rent It! Like It! Buy It!" program for games, allowing Blockbuster members to rent a selected game at the regular price and have the option to purchase either a new or previously-played copy of the game at $5 off the current price when it becomes available.

"Blockbuster is currently the leading renter of video games and one of the nation’s largest profit-producing companies in the interactive gaming market," Shepherd continued. "In conjunction with our enhanced retail proposition, and just in time for the busy summer months, we are also rolling out a wide array of programs designed specifically for renters."

New rental initiatives include increasing the number of titles and copies of each game, guaranteeing availability on key titles and introducing new game pricing and marketing initiatives tailored for gamers, including the Games Freedom Pass and the All Week Long rental program.

-- For the summer months, the Games Freedom Pass will allow Blockbuster members to rent an unlimited number of games (no more than two at a time for a 30 day period), for a $19.99 monthly fee, and return them whenever they wish during the month with no extended viewing fees.
-- June 24 through Labor Day, the All Week Long rental program allows Blockbuster members to rent any five-day game and keep it for an entire week for the same price, allowing customers to follow the rent-and-return cycle that is most convenient for them.