FOR IMMEDIATE RELEASE CONTACT: Corporate Communications 214/854-3190   BLOCKBUSTER VIDEO® ACQUIRES AUSTRALIA'S VIDEO FLICKS BRAND Video Retailer Plans Expansion "Down Under" Through Franchising DALLAS, April 6, 1998 - Blockbuster International announced that it has acquired the Queensland-based Video Flicks brand and will rebrand all 39 of the chain's retail stores -- all which are franchised. The move also paves the way for Blockbuster to increase its market share and presence in Australia through franchising. According to FL Chase, vice president of Blockbuster's Australia and New Zealand operation, the acquisition of the Video Flicks brand and the subsequent rebranding will boost the number of Blockbuster stores in Queensland from 21 to 60. "We expect our market share will grow nationally consistent with the Queensland example and that store numbers will continue to increase over the next year at a steady rate," he said. "Already operating in 25 international markets and the U.S. where its worldwide headquarters is located, Blockbuster plans to open approximately 300 stores abroad this year. The majority of the stores will be in existing markets, but several joint-venture and franchised agreements in new territories are currently being explored." "We see tremendous opportunity for Blockbuster in the international marketplace," commented Nigel Travis, president of Blockbuster International. "We will have much more focused, concentrated growth than in the past and will be expanding more through franchising opportunities as opposed to owning the store." Blockbuster has been committed to developing a franchise model relevant to the Australian market, including establishing state marketing and product committees and employing a dedicated franchise development manager in the appropriate markets. "Our decision to franchise Blockbuster means that any independent video and games operator anywhere in Australia can apply for a Blockbuster Video franchise and if approved, have the support and backing of a global organization," said Chase. Blockbuster established operations in Australia in May 1991 and currently operates 131 stores there, employing more than 1,400 employees. Blockbuster operates approximately 6,000 video and music neighborhood entertainment stores in the United States, its territories and 25 countries and may be accessed internationally at www.blockbuster.com. Blockbuster is a unit of Viacom Inc., one of the world's largest entertainment and publishing companies and a leading force in nearly every segment of the international media marketplace. ### |  Current Releases   |  Archives   | BLOCKBUSTER name, design and related marks are trademarks of Blockbuster Entertainment Inc. © 1998 Blockbuster Entertainment Inc. All rights reserved.