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BLOCKBUSTER ANNOUNCES RECOMMENDED OFFER FOR U.K.-BASED CITYVISION PLC

BLOCKBUSTER ANNOUNCES RECOMMENDED OFFER FOR U.K.-BASED CITYVISION PLC
    FORT LAUDERDALE, Fla., Nov. 22 /PRNewswire/ -- Blockbuster Entertainment Corporation (NYSE: BV) and Cityvision plc announced today in London that they have agreed on the terms of a recommended offer by Blockbuster to acquire all of the outstanding capital stock of Cityvision for cash, or shares of Blockbuster common stock at the election of qualifying Cityvision shareholders, subject to certain limitations.
    Cityvision is the leading videocassette rental operator in the United Kingdom.  At Nov. 21, Cityvision operated 875 videocassette rental stores primarily under the name of "Ritz."
    The offer values the capital stock of Cityvision at approximately $135 million.  The maximum number of Blockbuster shares which may be issued pursuant to the share alternative is 4 million shares.  The acquisition is expected to close early next year.
    Blockbuster also announced that Philips Electronics N.V. will have the right under a previously announced agreement with Blockbuster either to obtain approximately a 50 percent ownership interest in the Cityvision shares acquired by Blockbuster or the right to acquire shares of Blockbuster common stock.
    H. Wayne Huizenga, chairman of the board of Blockbuster, stated that, "We are excited about this development and the resulting opportunity to build on the existing strengths of Cityvision in the highly competitive home video industry in the United Kingdom and throughout Europe."
    Blockbuster is the largest operator of videocassette rental stores in the United States.  At Sept. 30, there were 1,934 stores (1,010 company-owned and 924 franchised) in North America, South America, the Far East and Europe.
    -0-                 11/22/91
    /CONTACT:  Steven R. Berrard of Blockbuster Entertainment, 305-524-8200/
    (BV) CO:  Blockbuster Entertainment Corporation; Cityvision plc ST:  Florida IN:  REA SU:  TNM BN-BR -- AT001 -- 6228 11/22/91 07:59 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 22, 1991
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