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Movie Gallery Inc. and its affiliated chapter 11 debtors-in- possession, have filed a Motion with the Bankruptcy Court for approval to conduct an auction sale of their remaining intellectual property assets.

According to a release, assets being sold include their Hollywood Video, Movie Gallery and Game Crazy trademarks, as well as related domain names and customer databases. Also included among the domain name assets is the Reel.com trademark and domain name.

The Bankruptcy Court is scheduled to consider approval of the Motion, including Bidding Procedures, on Oct. 26. Subject to the Bankruptcy Courts approval of the motion, Streambank, an asset advisory firm retained by Movie Gallery in June, is expecting to conduct the auction sometime in the first two weeks of November.

Movie Gallery said it had operated over 4,000 retail video and game rental and sales locations throughout the United States and Canada under the Hollywood Video, Movie Gallery and Game Crazy brands. The Company reported that it has built a base of more than 50 million customers and comprised a significant percentage of video sales and rentals with sales of $2.4 billion in 2007.

“While the evolving landscape in the home movie distribution space is creating uncertainty for the average consumer, a recognized brand will be an essential element in establishing customer confidence,” said Gabe Fried, Managing Principal of Streambank, LLC. “Customers simply will be more comfortable using new technology or renting from a kiosk if it is branded with a recognized brand in the movie rental space. Millions of consumers have been renting their movies from Movie Gallery and Hollywood Video for more than 20 years. These have proven to be trustworthy brands.”

In addition to the movie brands, the Company said it is selling its Game Crazy trademark and other gaming related IP. Prior to 2009, Game Crazy had more than 700 locations and comprised more than 25 percent of the companys sales, making it the second largest specialty retailer in the video game space.

“The Game Crazy brand is very highly regarded in the gaming world,” said Fried. “We have received a great response to this offering throughout our marketing process. Whoever ends up owning this brand will be able to capture a major portion of the market- share in a high per-transaction spending business.”

Streambank is an advisory firm specializing in the valuation, marketing, and sale of intangible assets for businesses at all stages.

More Information:

www.streambankllc.com

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