DVD Kiosk Rental Leader TNR Entertainment Selects IBM Services to Support Growth

Market Wire, December, 2006

TNR Entertainment Corp. , the nation's largest owner and operator of DVD rental kiosks in supermarkets and grocery stores, has selected IBM (NYSE: IBM) to develop and host a new IT infrastructure to support TNR's growth plan of 100 times its current business.

TNR, which operates automated DVD rental kiosks under the brand "The New Release(TM)," has served more than a million customers with over five million DVD rentals since its inception in 2002. A year ago, TNR operated 200 kiosks. It now expects to manage over 2,000 kiosks in U.S. stores by early 2007, and eventually install more than 20,000 kiosks.

In a multi-million-dollar contract, TNR selected IBM for a mySAP All-in-One software implementation and a three-year contract for IBM Applications on Demand hosting that will help provide improved inventory and operational controls in support of its aggressive growth plan.

"At the beginning of the year, we realized that, with our major growth initiatives underway and the tremendous amount of data flow inherent in our business, our systems didn't have the management tools we needed, now or for the future. IBM was able to quickly assess our needs, develop an IT infrastructure and manage it for us," said Jay Whitney, vice president of operations for TNR Entertainment. "With the on demand hosting model, we can focus our efforts on expanding the business without having to invest in an entire IT infrastructure from the ground up."

With the new infrastructure, implemented from start to finish in only four months, TNR can integrate its several operational components into one application environment hosted seamlessly by IBM.

"Working with IBM is enabling TNR to take advantage of the huge growth opportunities we see ahead," said Richard B. Cohen, chief executive officer of TNR. "The speed at which this comprehensive structure is being implemented is a testament to the quality of both the TNR and IBM teams."

The mySAP All-in-One is preconfigured, affordable and quickly implemented ERP software that allows TNR to streamline its business processes, increase efficiency and achieve a rapid return on investment. IBM provides mySAP consulting and integration as part of the IBM Express Advantage solutions, specifically designed for small and midsized businesses.

TNR currently serves over 500,000 customers monthly across 1,000 locations in several of the nation's largest grocery chains, including A&P, Food Lion, H-E-B, Kroger/King Sooper, Publix, Roundy's/Pick 'N Save, Safeway/Randall's and Spartan/Family Fare.

The New Release automated DVD rental kiosks provide supermarket customers with a convenient one-stop shopping experience, offering the latest DVD titles for $1-a-day and no late fees -- a simple and affordable pricing structure that TNR was the first to successfully market. TNR's kiosks house up to 1,000 units each, representing more than 200 titles, including top new releases. The fully automated kiosks operate on a wireless communications network and next-generation DVD kiosk operating system.

More information on TNR Entertainment Corporation and IBM can be found at www.thenewrelease.com and www.ibm.com .

Contacts: Lon Levitan IBM Public Relations 512-823-0404 llevitan@us.ibm.com Craig A. Parsons TNR Entertainment 310-472-7632 parsonscomm@aol.com