Challenger Capital Advises Mark Wattles in Blockbuster, Hollywood Entertainment Deal

Challenger Capital Advises Mark Wattles in Blockbuster, Hollywood
Entertainment Deal
Wattles Offers to Purchase Hollywood Entertainment Stores to Help Advance
Acquisition By Blockbuster 


DALLAS, March 22  /PRNewswire/ -- Challenger Capital Group, Ltd., a Dallas-
based full-service investment bank, is advising Mark J. Wattles, former
chairman of Hollywood Entertainment Corp. (NASDAQ:HLYW), on his potential
purchase of up to half of Hollywood's video stores to facilitate Blockbuster's
(NYSE:BBINYSE:BBI.B) proposed acquisition of Hollywood.

"Combining Challenger's financial skills with Wattles' unique knowledge of
these assets and managerial talent sets us up to succeed on any potential
transaction involving Hollywood stores," said Mark Stephens, Executive Director
and CEO of Challenger.  "The transaction resources that Challenger will commit
on Wattles' behalf are considerable, enabling a deal to be negotiated and
consummated quickly."

Challenger was started by Stephens, a 27-year investment banking veteran, to
fill a distinct void in the investment banking market, resulting primarily from
massive industry consolidation.  Previously, Stephens was the Dallas managing
director of Donaldson, Lufkin & Jenrette, which subsequently became Credit
Suisse First Boston.  Stephens has assembled a team of senior bankers who bring
extensive experience to Challenger with more than $160 billion in deals
spanning more than 250 transactions.

"Challenger's team was hand picked to meet our clients' corporate finance needs
on a full spectrum basis, including equity and mezzanine growth capital, bank
debt, and advisory services related to mergers, acquisitions, divestitures,
corporate real estate and business strategy," said Stephens. The Challenger
team currently includes 15 professionals.

About Challenger Capital Group, Ltd.

Challenger Capital Group is a Dallas-based, investment bank serving the
corporate finance needs of middle-market growth companies.  Challenger
specializes in private placements of equity, mezzanine and debt as well as
advisory services, including mergers and acquisitions, divestitures, corporate
real estate and business strategy.  The Challenger staff has exceptional
experience, having completed over 250 transactions representing more than $160
billion in aggregate transaction value.  Challenger's industry expertise
includes the consumer products, energy, entertainment, food service,
healthcare, industrial products, media, natural gas, oilfield service,
publishing, retail and telecom sectors. 

DATASOURCE: Challenger Capital Group, Ltd.



CONTACT:  Peggy Bureau of Challenger Capital Group, Ltd.,

[phone]; or Elizabeth Browne of Michael & Partners, [phone],

ext. 26, for Challenger Capital Group, Ltd.

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