Hollywood Shareholders Approve Merger With Movie Gallery

Hollywood Shareholders Approve Merger With Movie Gallery 


PORTLAND, Ore., April 22  /PRNewswire-FirstCall/ -- Hollywood Entertainment
Corporation ("Hollywood") (Nadsaq: HLYW) today announced that its shareholders
have approved the merger of Hollywood with an affiliate of Movie Gallery, Inc.
At the special meeting of shareholders held today, 44,412,245 shares or
approximately 70% of the total issued and outstanding shares of Hollywood were
represented, with 39,332,517 shares or 88.5% of those represented voting to
approve the Agreement and Plan of Merger, dated as of January 9, 2005, by and
among Movie Gallery, Inc., TG Holdings, Inc. and Hollywood Entertainment
Corporation (the "Merger Agreement") and the related merger.  Although the
completion of the merger remains subject to satisfaction of the closing
conditions in the Merger Agreement, Hollywood anticipates that the merger will
be completed on or about April 27, 2005. Under the terms of the Merger
Agreement, Hollywood will become a wholly owned subsidiary of Movie Gallery and
Hollywood's shareholders will be entitled to receive $13.25 per share in cash
upon completion of the merger.

Forward-Looking Statements

Hollywood's statement regarding the completion of the merger with an affiliate
of Movie Gallery, Inc. is a "forward-looking statement" within the meaning of
the Private Securities Litigation Reform Act of 1995.  The completion of the
merger is subject to conditions specified in the Merger Agreement, many of
which are not in Hollywood's control. 

DATASOURCE: Hollywood Entertainment Corporation



CONTACT:  Larry Dennedy, Bob Marese or Dan Burch, all of MacKenzie

Partners, Inc., [phone], for Hollywood Entertainment Corporation 



Web site:  http://www.mackenziepartners.com/ 

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