Hollywood Shareholders Approve Merger With Movie Gallery

Hollywood Shareholders Approve Merger With Movie Gallery

PORTLAND, Ore., April 22 /PRNewswire-FirstCall/ -- Hollywood Entertainment Corporation ("Hollywood") (Nadsaq: HLYW) today announced that its shareholders have approved the merger of Hollywood with an affiliate of Movie Gallery, Inc. At the special meeting of shareholders held today, 44,412,245 shares or approximately 70% of the total issued and outstanding shares of Hollywood were represented, with 39,332,517 shares or 88.5% of those represented voting to approve the Agreement and Plan of Merger, dated as of January 9, 2005, by and among Movie Gallery, Inc., TG Holdings, Inc. and Hollywood Entertainment Corporation (the "Merger Agreement") and the related merger. Although the completion of the merger remains subject to satisfaction of the closing conditions in the Merger Agreement, Hollywood anticipates that the merger will be completed on or about April 27, 2005. Under the terms of the Merger Agreement, Hollywood will become a wholly owned subsidiary of Movie Gallery and Hollywood's shareholders will be entitled to receive $13.25 per share in cash upon completion of the merger.

Forward-Looking Statements

Hollywood's statement regarding the completion of the merger with an affiliate of Movie Gallery, Inc. is a "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act of 1995. The completion of the merger is subject to conditions specified in the Merger Agreement, many of which are not in Hollywood's control.

Source: Hollywood Entertainment Corporation

CONTACT: Larry Dennedy, Bob Marese or Dan Burch, all of MacKenzie Partners, Inc., +1-212-929-5500, for Hollywood Entertainment Corporation

Web site: http://www.mackenziepartners.com/

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