CDRLabs.com

In response to the growing demand for high-definition DVDs, Blockbuster Inc. (NYSE: BBI, BBI.B) today announced that it is rolling out an expanded Blu-ray disc inventory for rental to 1,700 corporate-owned BLOCKBUSTER(R) stores by mid-July. The Company will continue to offer both Blu-ray and HD DVD titles through its online rental service, http://www.blockbuster.com, and will continue to offer both formats at its initial 250 stores that currently carry both high-definition formats.

"We intend to meet the demands of our customers and based on the trends we're seeing, we're expanding our Blu-ray inventory to ensure our stores reflect the right level of products," said Matthew Smith, SVP Merchandising for Blockbuster. "While it is still too early to say which high-definition format will become the industry standard, we will continue to closely monitor customer rental patterns both at our stores and online, so we can adjust our inventory mix accordingly and ensure that Blockbuster is offering customers the most convenient access to the movies they want, in the format they want."

When Blu-ray and HD DVD were introduced to the marketplace in 2006, Blockbuster began offering the high-definition formats on all titles in
which it was available through blockbuster.com. The Company also introduced both formats on select titles in 250 stores in November of 2006. With Blu-ray rentals significantly outpacing HD DVD rentals at its BLOCKBUSTER stores, the Company made the decision to expand the number of stores offering the Blu-ray format.

With the expansion in July, the 1,700 stores will be carrying more than 170 titles in Blu-ray and will continue to add titles in the format as they are released from the studios.

The North American HD DVD Promotional Group said Blockbuster's decision was shortsighted and skewed by the success of films released by Blu-ray studios in the first three months of the year. The group said HD DVD has since gained momentum, selling more players and popular titles such as "The 40-Year Old Virgin" and "The Matrix" trilogy.

"I think trying to make a format decision using such a short time period is really not measuring what the consumer is saying," said Ken Graffeo, co-president of the group.