RNS Number:2315A
Home Entertainment Corporation PLC
29 June 2004



Home Entertainment Corporation acquires largest competitor of Video Box Office;
expands Choices Direct customer base


TUESDAY, 29 June 2004 - In a move which will strengthen its leading position in
the convenience store sector, Home Entertainment Corporation ("HEC" or "the
company") has acquired the undertaking and assets of In-Store Movies ("ISM"),
another provider of video and DVD rental and retail products to convenience
stores.


ISM is the UK's second largest independent supplier to the convenience store
sector, after HEC's Video Box Office ("VBO"), and the acquisition combines the
only two UK entertainment providers in this sector with national coverage.


The acquisition of ISM further strengthens the market position of VBO, enabling
HEC to achieve economies of scale to continue its success in the competitive and
fast-moving convenience store sector.


In addition to greater variety of video rental products, VBO will provide ISM
customers with access to an upgraded DVD rental product offering, improved
provision of new releases and a free re-merchandising service including full
"point-of-sale" update. The company expects to complete conversion of ISM
customers to the VBO format during the week beginning 12 July 2004. As a result,
ISM customers will immediately receive a minimum of 50 new DVDs in exchange for
VHS videos to bring the product offering in line with current trends which show
DVD accounting for 73% of video revenues in the convenience store sector and
growing. Once initial conversion has been completed, ISM customers will be given
access to VBO's very successful sell-thru product range.


Iain Muspratt, HEC's Chairman, said: "In-Store Movies is VBO's longest
established and largest independent competitor. Its acquisition will enable the
company to achieve further profitable growth in the rapidly expanding
convenience store sector."


In a separate move to expand Choices Direct, the company's fast-growing mail
order business, HEC has acquired the customer database from the liquidator of
Jersey-based Splashdvd.com. The database acquired consists of more than 200,000
consumers of home entertainment with a similar profile to existing Choices
Direct customers. As a result of the limited overlap with the existing Choices
Direct customer database, the company believes that it should be able to
generate significant incremental revenues from former Splashdvd.com customers.


Mr Muspratt commented: "We are continuously looking for opportunities to expand
the business. The acquisitions of In-Store Movies and the customer database of
Splashdvd.com are good examples of how we believe we can achieve profitable,
long-term growth cost-effectively."


ENDS


For further information contact

Simon Bloomfield, Bankside Consultants
Tel: 0207 444 4140 (office) or 07771 758517 (mobile)


Iain Muspratt, Chairman, Home Entertainment Corporation
Tel: 01733 363099 (office)


Notes to Editors


Video Box Office
Provides a service throughout the United Kingdom to convenience stores and other
established retailers, enabling them to add DVD and video sales and rental,
computer games software sales and music sales to the range of products offered
to their customers.

www.vbo.co.uk


Choices Direct

Choices Direct offers DVDs, videos, computer games and talking tapes released in
the United Kingdom for sale through mail order. Customers can access the Choices
Direct service by mail, by telephone or over the Internet via Choices Direct's
website at www.choicesdirect.com

Choices Direct also manages and fulfils DVD and video sales for many of the
large mail order catalogue companies in the United Kingdom, including GUS,
Freemans, Littlewoods and Book Club Associates. The service offered is
comprehensive, ranging from title selection advice and compilation, through to
fulfilment of customers' orders.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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