Joe Malugen Partners Quotations

That being said, we are not satisfied with our recent performance and have responded by taking decisive actions to improve our results. We are implementing a comprehensive set of initiatives to drive revenues, maximize margin opportunities, further improve our operating efficiencies, cut costs and increase asset utilization. We expect this plan will help offset the continued revenue softness we are seeing and expect to continue to see in the near-term, and will contribute to the long-term success of the Company, which is our goal for stockholders, partners and associates alike.

While much work lies ahead, we are pleased that recovery efforts are under way in the communities affected by Hurricane Katrina and that almost all of our stores have resumed normal operations. I want to acknowledge the extraordinary efforts of the countless number of our associates and partners who are responsible for getting our stores up and running. We look forward to continuing to provide our customers with our outstanding selection of movies and video game rentals.

We want to extend our sympathy to the people and communities affected by Hurricane Katrina. Our thoughts are with our customers, associates, and partners during this difficult time and we hope for a quick recovery from this disaster.