'Moovies' on a fast-track expansion course as ten industry innovators launch new video chain.

GREENVILLE, S.C.--(BUSINESS WIRE)--Sept. 7, 1995--Moovies, the movie chain of tomorrow, is here today. How many companies does it take to create one of the five largest retail chains in the U.S.? As of now, Moovies Inc., started that company, consisting of 87 stores in 10 leading regional video groups, and is on a "fast-track" expansion course.

Fueling that expansion is an initial public offering of 3.6225 million shares of common stock on August 3, offered at $12.00 per share. The common stock began trading on August 4 in the Nasdaq National Market, under the trading symbol MOOV.

Moovies, already operating with 11 stores in North and South Carolina, and Georgia, acquired 76 video specialty stores from leading regional chains in six other states. Over the next six months, the Moovies name and logo will replace First Row Video (24 locations, Eastern OH, Western PA); Movie Stars (10, Poughkeepsie, NY area and Fairfield, CT); Video Express (10, Norfolk, VA area); Video Stars (8, Norfolk, VA area); Video Warehouse 1 (5, Northern GA); Video Warehouse 2 (7, Southern GA); L.A. Video (5, Philadelphia, PA area); King Video (5, Blacksburg, VA area), and Planet Video (2, Trenton, NJ, and Drescher, PA).

Chain is one of `Top Five'

Moovies, with its 87 locations, is one of the five largest operators of video specialty stores in the U.S., according to John L. Taylor, president and chief executive officer. The company had pro forma revenues of $43.8 million and pro forma net income of $2.4 million in 1994; pro forma revenues of $11.579 million and $20.492 million, and pro forma net income of $679,000 and $1.717 million, for the second quarter and six months ended June 30, 1995 respectively, he reported.

"With close to 1 million combined customers as a base, and over 1,100 employees, Moovies will continue to stress service, selection and added value," Taylor emphasized. "We plan to open 15 or more superstores during the remainder of 1995. The first six, by September 30, will include Mamaroneck, NY; Charlotte and Raleigh, NC, and Philadelphia, PA. At the same time, we will change the name and logo, and install a state-of-the-art Management Information System at all newly acquired stores. Eventually all stores will adopt the family-oriented Moovies interior design and merchandising, which includes such whimsical categories as `Moo-Dun-It' for mystery and `Moo Releases' for new releases, and our Club Cow-a-Bubba for kids."

Principals Take Active Roles

Management strength is critical to Moovies' successful expansion, with most principals in the merger acquiring stock and taking active roles in managing and expanding existing regions. The founders, Douglas Raines, chairman of the board, and Michael Yeargin, executive vice president-Purchasing, are joined by John Taylor, now president and CEO, and Andy Mitchell, now chief financial officer. Alan Daniels, with dual responsibility as executive vice president--Marketing, and COO Northeast, was with Movie Stars; Arthur Greeder III, vice president, COO, MidAtlantic Region, Video Express; Rokki Rogan, vice president, COO, Midwest Region, First Row Video; Alan Warshaw, vice president, COO, Pennsylvania Region, L.A. Video, and Robert Klein, vice president, COO, Eastern PA/NJ Region, Planet Video.

"This is a great opportunity for the entire company," Daniels emphasized. "Each of our employees is given a chance to grow as we expand. Two veteran Movie Stars' employees were recruited to Moovies headquarters in SC, Peter Lyons as MIS Director, and Mark Fisher as Director of Purchasing. We're looking at an extensive number of sites to be developed by the end of next year, which will create management openings for many current employees."

CONTACT: Moovies Inc.

John Taylor, CEO or Andy Mitchell, CFO 

803/292-2072