Blockbuster Increases Presence in Central America

Blockbuster Inc., the world's leading renter of videos and video games, is extending its presence in Central America with agreements to open the first franchised stores in Costa Rica, the Dominican Republic, Honduras and Nicaragua. Blockbuster has entered into development agreements with Video de Centroamerica, S.A. to develop stores in the four countries beginning this year. Video de Centroamerica is closely associated with Grupo Mizbe, the Blockbuster franchisee for Panama and operator of eight stores in that country. Blockbuster is a publicly-traded subsidiary of Viacom Inc.

The first stores in Costa Rica are scheduled to open this year, and the first stores in Honduras, the Dominican Republic and Nicaragua are scheduled to open in 2001. Blockbuster and Video de Centroamerica are currently reviewing proposed sites for the locations of the initial stores.

"We are excited about the opportunities to grow in these new markets," said Nick Shepherd, Blockbuster senior vice president, international. "We look forward to helping support Video de Centroamerica to bring Blockbuster's established brand and fun shopping experience to the people of Costa Rica, the Dominican Republic, Honduras and Nicaragua. With stores in these four new countries, Blockbuster will operate in virtually all of the Americas."

"Based on the popularity of Blockbuster stores in other parts of Central and South America, we see great opportunity to leverage the Blockbuster brand with this expansion," said David Mizrachi, president of Video de Centroamerica. "Blockbuster has tremendous global appeal."

Approximately 25 Blockbuster stores are planned to open in the four new countries by 2004. The stores will vary in size and will carry between 3,000 and 6,000 movies available for rent. The stores also will carry video games for rent and an assortment of entertainment-related products. With the opening of the new stores, Blockbuster will serve a total of 15 Latin American countries.

Blockbuster is the world's leading renter of videos, DVDs, and video games with approximately 7,300 stores throughout the Americas, Europe, Asia and Australia. The company may be accessed internationally at blockbuster.com. Viacom Inc. is one of the world's largest entertainment and media companies and a leader in production, promotion and distribution of entertainment, news, sports and music.