Blockbuster Profile

Blockbuster Inc. (Blockbuster) is a global provider of in-home rental and retail movie and game entertainment, with over 9,000 stores in the United States, its territories and 24 other countries as of December 31, 2005. The Company operates in the home video and home video game industries, which include in-home movie (such as theatrical movie, television series and direct-to-video product) and game entertainment offered primarily by traditional (in-store) retail outlets, online retailers, and cable and satellite providers. During the year ended December 31, 2005, Blockbuster continued to focus on offering programs that are an alternative to the programs offered by mass merchant retailers and other online subscription service providers. In addition, the Company continued its BLOCKBUSTER Rewards program, expanded digital versatile disc (DVD) and game trading significantly in its United States locations, and offered in-store rental coupons to its BLOCKBUSTER Online subscribers. For the three months ended 31 March 2006, Blockbuster Inc.'s revenues fell 8% to $1.43B. Net loss applicable to Common fell 92% to $4.7M. Revenues reflect decreased Base rental revenue, lower Extended viewing fee inflows, lower Merchandise sales and lower other revenues. Lower loss reflects fall in general & administrative expenses, substantial fall in advertising costs and decreased depreciation & amortization of intangibles.