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 31, 1998-- A conference call was held yesterday to discuss the acquisition of Reel.com by Hollywood Entertainment. The call was led by Dave Wetherell, chairman and chief executive officer of CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group Information Services See Information Systems. and Mark Wattles, chairman and chief executive officer of Hollywood Entertainment. A replay of this call can be accessed by dialing 1-800-475-6701, access code 400665. Commensurate with today's acquisition of Reel.com Inc., the largest video store on the Web, by Hollywood Entertainment Corp.(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :HLYW), CMG @Ventures (NASDAQ:CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) ), Intel Corp.(NASDAQ:INTC INTC Intel (NASDAQ symbol) INTC Intercept INTC Interrupt Controller ), 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . By purchasing Reel.com, which operates the leading video store on the Internet, the Internet, the, international computer network linking together thousands of individual networks at military and government agencies, educational institutions, nonprofit organizations, industrial and financial corporations of all sizes, and commercial enterprises 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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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 Bellevue is a rapidly growing city in King County, Washington, U.S., across Lake Washington from Seattle. Long known as a suburb or satellite city of Seattle,[1] it is now categorized as an edge city or a boomburb. 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. 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) 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) 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 majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. companies including Planet Direct, NaviSite, Engage Technologies, Accipiter, ADSmart, InfoMation, The Password and Magnitude Networks. In addition to Reel.com, the company's CMG @Ventures investment affiliate has significant interests in Lycos, Inc. (NASDAQ:LCOS (Liquid Crystal on Silicon) A technology used to make microdisplays for rear-projection TVs and head-mounted displays (HMDs). Each LCoS chip hosts a grayscale LCD shutter sandwiched between a cover glass and a mirror. ), blaxxun, Vicinity, GeoCities, Parable LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , Planet All, KOZ, Silknet, Chemdex, Speech Machines, Softway Systems, TicketsLive Corporation, Critical Path, Mother Nature and Visto Corporation. CMG also includes CMG Direct, SalesLink and InSolutions as wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. in the direct marketing, fulfillment and turn-key arenas. Corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. Telephone: 978-684-3600. Fax: 978-684-3674. Additional information is available on the company's Web site, . CONTACT: CMG Information Services Copithorne & Bellows Mary Garrity Cormier Lisa Hahn (978) 684-3789 (617) 450-4300 Reel.com Niehause Ryan Wong Monica Granados Andrea Vassallo (510) 549-3333 X 252 (650) 827-7026 |
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