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* * * * REPEAT * * * * PHILIPS ELECTS TO ACQUIRE SIX MILLION BLOCKBUSTER SHARES FOR ITS $66 MILLION INVESTMENT

 * * * * REPEAT * * * *
 PHILIPS ELECTS TO ACQUIRE SIX MILLION BLOCKBUSTER
 SHARES FOR ITS $66 MILLION INVESTMENT
 FORT LAUDERDALE, Fla., April 8 /PRNewswire/ -- Blockbuster Entertainment Corporation (NYSE: BV) said today it has been notified that Philips Electronics, N.V. intends to exercise its option to acquire six million newly issued shares of Blockbuster common stock for the $66 million Philips previously invested in Blockbuster on Jan. 15, 1992.
 Blockbuster also announced today that it has modified the terms of an option for Philips to acquire an additional five million shares originally granted to Philips under its November 1991 investment agreement with Blockbuster. Under the terms of the amended investment agreement, the option to acquire these additional shares will be exercisable until Dec. 15, 1992. If the option is exercised on or prior to June 30, 1992, the exercise price will be $11 per share and if the option is exercised after that date the exercise price will be $12 per share.
 The amended investment agreement also provides that Blockbuster and Philips will discuss the possible distribution of Philips software and certain hardware through the Blockbuster store system.
 Blockbuster intends to file a registration statement covering the possible future resale of shares subject to the Philips options. Philips' purchases of Blockbuster shares under the options are subject to certain customary conditions.
 With the investment decision announced today and the two million Blockbuster shares acquired in late February, Philips will hold about 4.5 percent of the company's outstanding shares of common stock.
 As of March 31, 1992, the Blockbuster system had 2,829 stores, of which 1,805 were company-owned (including the stores recently added in connection with the acquisition of Cityvision plc, the largest home video rental operator in the United Kingdom) and 1,024 were franchise- owned. The Blockbuster system currently operates in 46 states and the District of Columbia and in Austria, Australia, Canada, Chile, Guam, Japan, Mexico, Puerto Rico, Spain, the United Kindgom and Venezuela.
 -0- 4/8/92 R
 /CONTACT: Steven R. Berrard of Blockbuster Entertainment Corporation, 305-524-8200/ CO: Blockbuster Entertainment Corporation; Philips Electronics, N.V. ST: Florida IN: REA SU:


TQ -- FL002R -- 6147 04/08/92 10:25 EDT
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Publication:PR Newswire
Date:Apr 8, 1992
Words:361
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