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 FORT LAUDERDALE, Fla., Aug. 4 /PRNewswire/ -- Blockbuster Entertainment Corporation (NYSE: BV) announced today that it will redeem on Sept. 3, 1993 its Liquid Yield Option(TM) Notes (LYONs(TM)) due 2004.
 Each LYON outstanding on the redemption date will be redeemed for $416.72 in cash, including accrued but unpaid original issue discount. Prior to the time of redemption, holders may convert each LYON into 27.702 shares of Blockbuster's common stock, which conversion would have a value of approximately $679 based on today's closing price of $24.50 per share on the New York Stock Exchange. Holders of LYONs who choose not to convert would receive the cash equivalent of approximately $15 per share for each share subject to a LYON.
 H. Wayne Huizenga, chairman and chief executive officer of Blockbuster, commented that "redeeming the LYONs at this time is consistent with the company's practice of positioning itself with a conservative capital structure. We anticipate that most of the LYONs will be converted prior to the redemption date because the value of the underlying shares now substantially exceeds the redemption value. The conversions will enable us to better reflect the present economic character of the LYONs on our balance sheet and will have no impact on our earnings per share."
 LYONs holders will be sent a notice of redemption which details the procedures to be followed for conversion or redemption. As of July 31, 1993, there were 299,335 LYONs outstanding. Assuming all outstanding LYONs are converted prior to the redemption date, Blockbuster will issue approximately 8.3 million shares of common stock in connection with the conversions. Earnings per share for the quarter ended June 30, 1993 as previously reported by the company assumed conversion of all LYONs into shares of Blockbuster common stock.
 Blockbuster Entertainment Corporation is a leading entertainment company. The company's video division includes 3,258 video stores operating in the system as of June 30, 1993, of which, 1,134 stores were franchise-owned and 2,124 were company-owned. The Blockbuster Video system operates in 48 states and in nine other countries. The Blockbuster music division includes 237 Sound Warehouse and Music Plus stores operating in 40 metropolitan areas in the United States and 15 Megastores operating throughout Continental Europe, Australia and the United States owned by a joint venture with the Virgin Retail Group.
 The company also owns approximately 21 percent of Discovery Zone, Inc., has the right to develop up to 50 Discovery Zone FunCenters in the United States and is a joint venture partner with Discovery Zone in a partnership which has the right to develop up to 10 FunCenters in the United Kingdom. As previously announced, Blockbuster has agreed to merge with WJB Video Limited Partnership, its largest franchise owner and a Discovery Zone franchisee. Upon consummation of the merger, Blockbuster would acquire the right to develop an additional 50 Discovery Zone FunCenters in the United States. In addition, upon consummation of the WJB merger and the previously announced acquisition of UI Video Holding Corporation, Blockbuster's second largest franchisee, Blockbuster would own and operate an additional 328 Blockbuster Video stores.
 The company also owns approximately 63.5 percent of Spelling Entertainment Group Inc. and approximately 37 percent of Republic Pictures Corporation, leading producers and distributors of filmed entertainment.
 -0- 8/4/93
 /CONTACT: Gregory K. Fairbanks of Blockbuster Entertainment Corporation, 305-832-3000/

CO: Blockbuster Entertainment Corporation ST: Florida IN: ENT REA SU:

AW-RC -- FL015 -- 9585 08/04/93 17:57 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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