Video City Completes Sale of Stores to Blockbuster

Business Wire, August 2, 1999

TORRANCE, Calif.--(BUSINESS WIRE)--Aug. 2, 1999--

Video City, Inc. (OTCBB: VDCT) announced today the completed sale of 45 of its Videoland retail video stores in Oregon and Washington to Blockbuster Inc. An additional four Videoland stores are expected to be sold to Blockbuster within the next several weeks.

Video City owns and operates 92 video stores in 12 states. It has grown substantially from 18 stores in the past year and a half and is one of the nation's fastest-growing entertainment companies.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, such as statements of the Company's plans, activities, expectations and intentions, that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the ability to make future acquisitions; the demand for video tapes, both rental and sales, which may be affected by seasonal factors, weather, the level of home viewing; competition from other retailers; the Company's ability to manage and staff its growth; and other factors disclosed under the caption "Special Considerations" in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 1999.