HLYW Hollywood Entertainment (MM)

Challenger Capital Advises Mark Wattles in Blockbuster, Hollywood Entertainment Deal Wattles Offers to Purchase Hollywood Entertainment Stores to Help Advance Acquisition By Blockbuster DALLAS, March 22 /PRNewswire/ -- Challenger Capital Group, Ltd., a Dallas- based full-service investment bank, is advising Mark J. Wattles, former chairman of Hollywood Entertainment Corp. (NASDAQ:HLYW), on his potential purchase of up to half of Hollywood's video stores to facilitate Blockbuster's (NYSE:BBINYSE:BBI.B) proposed acquisition of Hollywood. "Combining Challenger's financial skills with Wattles' unique knowledge of these assets and managerial talent sets us up to succeed on any potential transaction involving Hollywood stores," said Mark Stephens, Executive Director and CEO of Challenger. "The transaction resources that Challenger will commit on Wattles' behalf are considerable, enabling a deal to be negotiated and consummated quickly." Challenger was started by Stephens, a 27-year investment banking veteran, to fill a distinct void in the investment banking market, resulting primarily from massive industry consolidation. Previously, Stephens was the Dallas managing director of Donaldson, Lufkin & Jenrette, which subsequently became Credit Suisse First Boston. Stephens has assembled a team of senior bankers who bring extensive experience to Challenger with more than $160 billion in deals spanning more than 250 transactions. "Challenger's team was hand picked to meet our clients' corporate finance needs on a full spectrum basis, including equity and mezzanine growth capital, bank debt, and advisory services related to mergers, acquisitions, divestitures, corporate real estate and business strategy," said Stephens. The Challenger team currently includes 15 professionals. About Challenger Capital Group, Ltd. Challenger Capital Group is a Dallas-based, investment bank serving the corporate finance needs of middle-market growth companies. Challenger specializes in private placements of equity, mezzanine and debt as well as advisory services, including mergers and acquisitions, divestitures, corporate real estate and business strategy. The Challenger staff has exceptional experience, having completed over 250 transactions representing more than $160 billion in aggregate transaction value. Challenger's industry expertise includes the consumer products, energy, entertainment, food service, healthcare, industrial products, media, natural gas, oilfield service, publishing, retail and telecom sectors. DATASOURCE: Challenger Capital Group, Ltd. CONTACT: Peggy Bureau of Challenger Capital Group, Ltd., +1-214-239-8608; or Elizabeth Browne of Michael & Partners, +1-972-716-0500, ext. 26, for Challenger Capital Group, Ltd.

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