Blockbuster Inc. and CEO Enter into Amended and Restated Employment Agreement

    DALLAS, March 20 /PRNewswire-FirstCall/ -- In an 8-K filed today with
 the Securities and Exchange Commission, Blockbuster Inc. ( BBI, BBI.B)
 announced that the Company and John Antioco, Blockbuster Chairman and CEO,
 have entered into an amended and restated employment agreement that sets
 forth terms under which Mr. Antioco will leave the company by the end of
 2007.
     "I am pleased that we were able to reach this agreement," said John
 Antioco, Blockbuster Chairman and CEO. "This revised employment agreement
 allows for management continuity and ample opportunity for an orderly
 succession by the end of the year. In the meantime, the board of directors,
 our management team and I remain focused on continuing to improve the
 business, most notably through BLOCKBUSTER Total Access(TM)."
     "John and the company have reached terms that are clearly in the best
 interests of the stockholders," said Carl C. Icahn, a member of the
 Blockbuster Board of Directors. "I and the rest of the board remain
 committed to working with our dedicated management team to deliver on the
 company's financial goals for the year and to continue positioning
 Blockbuster for improved success now and into the future."
     Under the amended and restated employment agreement, Antioco will
 receive a 2006 bonus of $3.0525 million, which reflects a compromise
 between the $2.28 million bonus previously conditionally offered by the
 board and $7.65 million, which is the amount Antioco was entitled to
 receive under his previous employment agreement and Blockbuster's 2006
 Senior Bonus Plan if negative discretion was not invoked. Additionally, at
 the conclusion of his employment, Antioco will receive a lump sum payment
 of $4.9875 million as compared to a lump sum payment of $13.5 million that
 he would have been entitled to receive if he had been terminated without
 cause or had resigned for good reason on Dec. 31, 2007, under his previous
 employment agreement.
     Details of the amended and restated employment agreement are included
 in the 8-K filing.
     In addition, at a meeting of the Blockbuster board of directors on
 March 19, 2007, the board voted to recommend that Blockbuster's
 stockholders approve at its annual meeting an amendment to Blockbuster's
 certificate of incorporation to eliminate the classification of the board
 of directors and to provide for the annual election of all directors. The
 board believes that the de-classification of the board is consistent with
 best corporate governance practices.
     About Blockbuster
     Blockbuster Inc. is a leading global provider of in-home movies and
 game entertainment with more than 8,000 stores throughout the Americas,
 Europe, Asia and Australia. The company may be accessed worldwide at
 http://www.blockbuster.com/ .
     Blockbuster will file with the SEC a definitive proxy statement to be
 used by Blockbuster to solicit the approval of its stockholders for the
 proposed amendment to its certificate of incorporation to eliminate the
 classification of the Blockbuster board of directors. Blockbuster may also
 file other documents concerning the proposed amendment. You are urged to
 read the proxy statement regarding the proposed amendment when it is filed
 and any other relevant documents filed with the SEC, as well as any
 amendments to those documents, because they will contain important
 information. You will be able to obtain a free copy of the proxy statement
 when it is filed, as well as other filings containing information about
 Blockbuster, at the SEC's Internet Site (http://www.sec.gov). You will also
 be able to obtain copies of the proxy statement without charge by directing
 a request to: Blockbuster Inc., Attn: Investor Relations, 1201 Elm Street,
 Dallas, Texas 75270.
     Blockbuster and its directors and executive officers may be deemed to
 be participants in the solicitation of proxies from the stockholders of
 Blockbuster in connection with the proposed amendment to Blockbuster's
 certificate of incorporation. Additional information regarding the
 interests of those participants may be obtained by reading Blockbuster's
 definitive proxy statement dated April 25, 2006 in connection with
     Blockbuster's annual meeting of stockholders held on May 25, 2006, and
 by reading Blockbuster's definitive proxy statement regarding the amendment
 to Blockbuster's certificate of incorporation when it is filed.
     Forward-Looking Statements
     This release includes forward-looking statements related to our
 operations and business outlook and financial and operational strategies
 and goals. Specific forward-looking statements can be identified by the
 fact that they do not relate strictly to historical or current facts. These
 forward-looking statements are based on management's current intent,
 belief, expectations, estimates and projections regarding our company and
 our industry. These statements are not guarantees of future performance and
 involve risks, uncertainties, assumptions and other factors that are
 difficult to predict. Therefore, actual results may vary materially from
 what is expressed in or indicated by the forward-looking statements.
 Factors that may cause actual results to vary materially include, among
 others, the factors described in our filings with the SEC, including
 factors discussed under the heading "Risk Factors" in our annual report on
 Form 10-K for the year ended December 31, 2006. This cautionary statement
 is provided pursuant to Section 27A of the Securities Act of 1933 and
 Section 21E of the Securities Exchange Act of 1934. The forward-looking
 statements in this release are made only as of the date hereof and we
 undertake no obligation to update publicly any forward-looking statement
 for any reason, even if new information becomes available or other events
 occur in the future.
 
 

SOURCE Blockbuster Inc.

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