Movie Gallery Acquires 20-Store Chain Located Primarily in Virginia.

Business Editors

DOTHAN, Ala.--(BUSINESS WIRE)--March 27, 2002

Movie Gallery, Inc. (NASDAQ: MOVI) today announced that it has consummated the acquisition of a video specialty store company operating 20 stores primarily in the state of Virginia. Including this acquisition, the

"We are pleased to have completed this transaction, one of many we expect to evaluate during 2002," remarked Joe Malugen, Movie Gallery's Chairman and Chief Executive Officer. "Although we have often stated that internal store development is an important growth vehicle for us, we also believe that on-strategy, accretive core market acquisitions, such as this one, are an efficient means of entering markets or developing a dominant market position. We further believe that Movie Gallery has developed the most extensive experience in the integration of single and small-chain video specialty stores in the rural and secondary marketplace and that we are the best positioned company to operate them successfully. We, therefore, expect to continue leveraging our expertise to use acquisitions, in conjunction with internal store development, to achieve our growth objectives."

Movie Gallery currently owns and operates a total of 1,462 video specialty stores located in 41 states and five Canadian provinces. The Company is the leading provider of video and video game rental and sales in rural and secondary markets.