Exh. 99.2
HOLLYWOOD ENTERTAINMENT CORPORATION
RETAINS DONALDSON, LUFKIN & JENRETTE
TO EXPLORE OPTIONS TO ENHANCE
VALUE TO SHAREHOLDERS
Portland, OR - April 19, 2000-- Hollywood Entertainment Corporation ("the
Company") (Nasdaq symbol: HLYW) owner of the Hollywood Video chain of 1,710
video superstores and Reel.com, a leading Internet entertainment site, announced
today that it has retained the investment banking firm Donaldson, Lufkin &
Jenrette to explore strategic opportunities to enhance shareholder value.
The Company intends to explore all viable alternatives, including business
divestitures and combinations, strategic partnerships, or other transactions,
including a potential sale or leveraged buyout of the Company.
Mark Wattles, Chairman and CEO, said "Both the board and management of Hollywood
Entertainment believe that the Company's current stock price does not adequately
reflect the value of the business. Yesterday, the stock closed 75% off its 52
week high. Last year, Hollywood Video had sales of $1 billion and generated
over $200 million in EBITDA, representing approximately 58% EBITDA growth over
1998, and the Company's growth momentum continues into fiscal 2000. Reel.com,
in which we have invested approximately $160 million, is one of the Internet's
most recognizable brands, with over one million customer households, fifty
million page views last month and a network of more than 200,000 affiliate
sites. We believe that with the assistance of DLJ we can find the right
opportunities and use our assets and core competencies to do what is in the best
interest of our shareholders." The Company said that there can be no
assurance that any transaction will occur.
Hollywood Entertainment owns and operates Hollywood Video, the second largest
video store chain in the United States. Hollywood Video has 1,710 superstores
with over thirty million members or customer households in the United States.
The Company added 121 new stores in 1995, 250 new stores in 1996, 356 new stores
in 1997, 353 new stores in 1998 and 355 in 1999. Hollywood Entertainment also
owns Reel.com (http://www.reel.com and AOL Keyword: REEL) a leading online
destination for movie content, commerce and community. Hollywood Entertainment
and Hollywood Video are registered trademarks of Hollywood Entertainment
Corporation. Reel is a registered trademark of Reel.com, Inc.
The information contained herein includes 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. Although the Company believes that the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that its expectations will be
achieved. Important factors that could cause actual results to differ
materially from the Company's expectations include weather, quality and timing
of new releases, general economic and market conditions, and the factors
disclosed in its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
INVESTOR CONTACT:
Mark Wattles - Chairman and Chief Executive Officer 503-570-1601
David Martin - Chief Financial Officer 503-570-5298
MEDIA CONTACT:
Sean Mahoney - Senior Director of Public Affairs 503-570-3171
