- Domestic Same-Store Revenues Grew 2.9%

- Net Income Increased $94 Million Year-Over-Year

- Adjusted EBITDA Increased $91 Million Year-Over-Year

Blockbuster Inc. (NYSE: BBI; BBI.B) today reported financial results for the first quarter ended April 6, 2008.

Net income for the first quarter of 2008 was $45.4 million, or $0.20 per diluted share, an improvement of $94.4 million as compared with a net loss of $49.0 million, or $0.27 per share, for the first quarter of 2007.

Total revenues decreased 5.4% to $1.39 billion for the first quarter of 2008 from $1.47 billion for the first quarter of 2007, as a result of fewer company-operated stores. Domestic same-store revenues increased 2.9% as compared to the first quarter of 2007, reflecting a 920 basis point improvement over the first quarter of 2007. This increase was driven by a 0.4% growth in same-store rental revenues and a 19.7% increase in same-store merchandise sales. International same-store revenues decreased 1.5% from the same period last year, reflecting a 0.9% increase in same-store rental revenues and a 4.9% decline in same-store merchandise sales. Worldwide same-store revenues grew 1.4% from the same period last year.

"The significant improvement in our first quarter results demonstrates the underlying strength of our core rental and emerging retail business," said Jim Keyes, Blockbuster Chairman and CEO. "BLOCKBUSTER Total Access(TM), our subscription rental offering, is now profitable and positioned for growth. Additionally, our stores achieved positive growth in both sales and margin. We are particularly pleased that domestic same-store revenues showed an improvement for the first time in five years primarily as a result of several initiatives we have put in place, including an increased availability of top new movies, improved store merchandising and more effective pricing. Going forward, we are confident we can continue to grow our core business, which will enable us to focus on aggressive development of our digital offerings. Our ability to provide convenient access to both physical and electronic media entertainment will provide Blockbuster a meaningful competitive advantage and allow us to create enhanced shareholder value over the long-term."

About Blockbuster

Blockbuster Inc. (NYSE: BBI; BBI.B) is a leading global provider of in-home movie and game entertainment, with over 7,700 stores throughout the Americas, Europe, Asia and Australia. The Company may be accessed worldwide at http://investor.blockbuster.com.