Blockbuster Announces Exclusive Mobile Handset Integration Deal with Motorola

Motorola To Feature BLOCKBUSTER OnDemand® Application In Next Generation Mobile Phones

DALLAS // PRNewswire-FirstCall // -- Blockbuster Inc. (NYSE: BBI) (NYSE: BBI.B) today announced plans to feature the BLOCKBUSTER OnDemand movie download service in select Motorola phones, giving Motorola access to the BLOCKBUSTER OnDemand service and furthering Blockbuster's digital strategy by providing its library of premium digital entertainment to mobile devices for the first time.

Through the agreement select Motorola phones will feature an exclusive BLOCKBUSTER OnDemand application, providing on-the-go download access to Blockbuster's digital library of thousands of current BLOCKBUSTER OnDemand movies.

"Motorola is a recognized global communications leader and extending the BLOCKBUSTER brand and our OnDemand service into their portfolio of innovative new phones is a natural extension of our digital strategy," said Kevin Lewis, Senior Vice President of Digital Entertainment for Blockbuster. "People are increasingly relying on their mobile phones to stay connected to the things they love the most -- including their favorite movies and TV shows. The integration of our BLOCKBUSTER OnDemand service into Motorola's mobile phones will provide access to thousands of movies from the moment someone initiates their service."

"Mobile video entertainment is exploding, as consumers are demanding the widest selection of content: the movies they love in their living room and on their PC, now also available on their mobile phone, while on the go," said Christy Wyatt, Vice President of Software Platforms, Applications and Ecosystem, Motorola Mobile Devices. "Together with Blockbuster we intend to deliver an unparalleled portable movie experience on our next-generation handsets."

The agreement will also further Blockbuster's multi-channel vision of eventually enabling customers to use the Company's BLOCKBUSTER OnDemand application with multiple consumer electronics and portable devices, such as PCs, portable media players, Blu-ray Disc players, personal video recorders (PVRs), set-top boxes, mobile phones and Web-connected TVs, to search Blockbuster's entire catalog of entertainment content and download available titles for rent or purchase, schedule movies for mail delivery through BLOCKBUSTER Online(®), or reserve titles for in-store pick-up at participating BLOCKBUSTER® stores or at a BLOCKBUSTER Express™ branded vending machine.

About Blockbuster

Blockbuster Inc. (NYSE: BBI - News, BBI.B - News) is a leading global provider of in-home movie and game entertainment, with more than 7,100 stores throughout the Americas, Europe, Asia and Australia.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the future availability and timing of the BLOCKBUSTER OnDemand service on select Motorola mobile devices. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development, competitive service offerings and lack of market acceptance, as well as the other potential factors described under "Risk Factors" in each company's public reports filed with the Securities and Exchange Commission. Blockbuster cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Blockbuster disclaims any obligation to update these forward-looking statements.

SOURCE Blockbuster Inc.

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