Prodigy and Blockbuster Team to Offer Co-Branded Internet Service

Business Wire, Feb 22, 1999

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Feb. 22, 1999--Prodigy Communications Corporation (NASDAQ NMS: PRGY) announced today that it had finalized a strategic alliance with Blockbuster(R) for the design, development, and hosting of a co-branded Internet service for Blockbuster. Blockbuster is marketing the co-branded service and distributing free Prodigy Internet software to its members in nearly 4,000 Blockbuster store locations nationwide.

Prodigy has developed a co-branded version of the Prodigy Internet service. With one click of the mouse, co-branded subscribers will receive a customizable page that provides the latest in entertainment information, video releases, and specials from Blockbuster.

"We are extremely excited to offer this entertainment-oriented service to our members," said Gena Kay Sedlak, vice president of technology for Blockbuster. "Consumers can get a fast and reliable Internet connection through Prodigy, surf the web and get exposure to Blockbuster.com offerings."

Initially, Blockbuster will offer free co-branded Prodigy Internet CD-ROMs to its members, with the first three months of service costing $9.95 per month and every month following just $19.95 per month in the first year of service.

"We've designed the co-branded service to give Blockbuster members exactly what they're looking for," said David Trachtenberg, president and chief operating officer of Prodigy. "It's all right there on their home page: entertainment news, a comprehensive Web Guide, communities, plus reliable access and other special offers only available through Prodigy."

About Blockbuster:

Blockbuster Inc. is the nation's leading renter of videos and video games with approximately 6,000 Blockbuster Video stores in the United States, its territories and 26 other countries. The company may be accessed internationally at www.blockbuster.com. Blockbuster Inc. is a subsidiary of Viacom Inc., one of the world's largest entertainment companies and a leading force in nearly every segment of the international media marketplace.

About Prodigy Communications Corporation:

Prodigy Communications Corporation is a leading nationwide Internet service that provides fast and reliable Internet access and related value-added services. Prodigy utilizes a nationwide network covering more than 600 cities in all 50 states allowing approximately 83% of the United States population to access Prodigy's services with a local telephone call. Prodigy Internet enables the Internet to be used as a productivity tool by allowing subscribers to obtain and communicate desired information quickly and efficiently in an easy and personalized manner.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the intense competition in the Company's industry, subscriber turnover, disruption in the Company's network services or in other services provided by third parties, loss of the Company's PC bundling or Microsoft relationships, the impact of year 2000 issues, as well as the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission.