Blockbuster Statement on 10-Q Filing

Blockbuster Statement on 10-Q Filing

DALLAS, May 14 /PRNewswire-FirstCall/ -- Blockbuster Inc. (NYSE:BBI)(NYSE: BBI.B) today released the following statement from Chairman and Chief Executive Officer Jim Keyes surrounding its quarterly Form 10-Q filing that included cautionary language that is required by the SEC.

"The operating environment continues to be challenging, but we have made significant progress during the past year in reducing costs," stated Jim Keyes, Chairman and Chief Executive Officer of Blockbuster Inc.

"We believe we will continue to have adequate liquidity during 2010 through efforts including divesting non-core international assets, significantly improving working capital, continuing to reduce operating costs, and improving credit terms. Since there are execution risks related to these objectives, we are simultaneously pursuing a recapitalization and are in discussions with bond holders and other parties to improve our liquidity," added Keyes.

"We continue to have promising negotiations with strategic and financial partners. We remain optimistic about our ability to recapitalize Blockbuster and create a sustainable competitive advantage as the only multichannel provider of media entertainment," added the CEO.

About Blockbuster Inc.

Blockbuster Inc. is a leading global provider of rental and retail movie and game entertainment. The company provides customers with convenient access to media entertainment anywhere, any way they want it - whether in-store, by-mail, through vending kiosks or digitally to their homes and mobile devices. With a highly recognized brand and a library of more than 125,000 movie and game titles, Blockbuster leverages its multichannel presence to serve nearly 47 million global customers annually. The company may be accessed worldwide at www.blockbuster.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may also be included from time to time in our other public filings, press releases, our website and oral and written presentations by management. Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "predicts," "targets," "seeks," "could," "intends," "foresees" or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our strategies, initiatives, objectives, plans or goals are forward-looking. These forward-looking statements are based on management's current intent, belief, expectations, estimates and projections. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict. Currently, the risks and uncertainties that may most directly affect our future results include (i) whether our operating results continue to decline and whether we are able to generate sufficient cash flows to meet our liquidity needs; (ii) whether we will have sufficient cash flows from operating activities and cash on hand to service our indebtedness and finance the ongoing obligations of our business; and (iii) whether we are able to execute our transformational strategies, (iv) whether we are able to execute the strategies to retain our NYSE listing and obtain requisite approvals to recapitalize or restructure our balance sheet and capital structure and (v) other factors described in our filings with the Securities and Exchange Commission, including the factors discussed under the heading "Risk Factors" in our annual report on Form 10-K for the year ended January 3, 2010 and under the heading "Disclosure Regarding Forward-Looking Information" in our quarterly reports on Form 10-Q. This cautionary statement is provided pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Source: Blockbuster Inc.

CONTACT: Craig Bloom of Hill & Knowlton, for Blockbuster,
+1-212-885-0585, Craig.Bloom@hillandknowlton.com

Web Site: http://www.blockbuster.com/

-------
Profile: intent