Event Brief of Q1 2008 Blockbuster Inc. Earnings Conference Call - Final.

PARTICIPANTS

. Angelika Torres, Blockbuster Inc., Director IR . Jim Keyes, Blockbuster Inc., Chairman & CEO . Tom Casey, Blockbuster Inc., CFO . Tony Wible, Citigroup, Analyst . Arvind Bhatia, Sterne Agee, Analyst . Gretchen Hoey, JPMorgan, Analyst . Barton Crockett, JPMorgan, Analyst . Karru Martinson, Deutsche Bank, Analyst . Michael Perna, aAd Capital, Analyst . Emily Shanks, Lehman Brothers, Analyst . Randy Raisman, Durham Asset Management, Analyst

OVERVIEW

BBI reported 1Q08 net income of positive $45m.

FINANCIAL DATA

A. Key Data From Call 1. 1Q08 net income = positive $45m. 2. Debt at 1Q08-end = $706m.

PRESENTATION SUMMARY

S1. 1Q08 Business Review (J.K.) 1. Circuit City Update: 1. Has signed a confidentiality agreement and begun due diligence process. 2. Hopes the due diligence process will reinforce the benefits of this opportunity. 1. Will not proceed with the transaction unless it makes sense strategically and financially and also create significant value for shareholders. 2. Remains confident that core business is healthy and remains confident in its ability to transform BBI with or without this transaction. 1. Sees it as a potential accelerator for stated strategy, but the transaction is not critical to continued transformation. 3. Interested in a timely resolution of this process. 3. Hopes that due diligence will validate the strength Co. sees in the possible combination, but if it does not, Co. assures it will move on and focus on continued improvement in-store and online businesses. 4. Now nine months into strategic transformation and has made significant progress. 2. Cost Reduction: 1. Focused on aggressive cost reduction and have trimmed annual run rate G&A expenses by about $100m. 2. Reduced SG&A, including advertising, by $100m during 1Q08. 3. Has identified additional opportunities through outsourcing initiatives and improvements in physical logistics and other costs throughout Co. that will continue to improve operating costs and COGS. 4. To long-term success, Co. is growing topline results. 3. Core Business: 1. Overall same-store domestic revenues (just store, not including by-mail) increased 2.9% reflecting a greater than 900 BP improvement over 1Q07. 1. This is the first increase in same-store comparable sales in five years. 2. Continued improvement in same-stores for April and May to date. 1. Successfully turning up topline accomplishments into improved bottom line performance as evidenced by 1Q08 adjusted EBITDA and net income results. 4. Restoring Rental DVD Business: 1. Now more confident than ever that Co.'s core business is healthy and capable of profitable growth. 2. Believes there are better ways to satisfy the customer by providing better: 1. In-stock availability. 2. Improved customer service. 3. Better product assortment. 3. Improved in-stock availability of hot new releases, on top new releases, Co. is now 60% in-stock. 1. 60% in-stock during the first week this year vs. less than 20% a year-ago. 4. Being increasingly proactive in re-merchandising the stores to feature seasonal content, exclusive content, and highlighting new releases. 1. Has developed more prominent displays, better in-stock game availability to take advantage of growing video game business and puts much less emphasis on aggressive pricing and discounting. 5. To the pricing and terms opportunity, has been testing new in-store rental pricing [in terms where Co.] in the process of concluding the validation phase of those tests. 6. Better than expected improvements in business have given more time to test and re-test better and new pricing formulas. 1. Objective is simplicity. 1. Wants to improve the value proposition from the consumers' perspective and at the same time further improve the profitability of rental business. 2. Believes that now has a formula that works and is prepared to roll out new pricing and new terms later on this year, probably this summer. 2. Reshaped Total Access by-mail and in-store subscription offerings. 1. Reports that Total Access subscriptions are stable at [3.1m]. 2. Business is now profitable and getting back to business of growth. 3. Believes that Co. is well positioned for growth with a by-mail service that provides consumer value superior to NetFlix across all offerings. 4. Apples-to-apples offering is cheaper, $1 lower NetFlix across most of the popular by-mail only plans. 3. In-store exchange is an advantage and a terrific value. 1. Most popular [$19.99] plan includes unlimited by-mail rentals and five free in-store exchanges each month with in-store exchanges being worth about $20 all for only $3 more than NetFlix comparable by-mail only program. 4. Currently offering Blu-Ray at the same subscription prices to stimulate demand for this important new format. 1. Believes this is an important platform for Co.'s convenience strategy and will carefully manage this business going forward to achieve profitable growth. 5. Growth In Retail: 1. Making significant progress in diversifying revenue streams through the development of more robust retail business. 2. Domestic retail gross profit is slightly down this qtr., as Co. continues to adjust retail-pricing models and invest in retail growth. 1. Seeing significant upside as Co. expands those opportunities. 3. Strategy is to be a convenience retailer for media entertainment. 1. In near-term this means: 1. Selling DVDs. 2. Video games. 3. Other entertainment products. 4. Moving into the arena of content enabling devices, selling: 1. Sony PS3 players. 2. Blu-Ray players. 3. Video game consoles. 1. Begun testing the sale of portable and personal video devices at several locations. 5. Games are quickly emerging as another promising revenue opportunity for BBI. 1. Innovative products like Nintendo Wii are broadening the gaming audience. 1. Working quickly to expand retail offerings to meet growing new demand. 2. Has rolled out retail video games and game hardware to all US corporate-owned stores. 2. Putting games on the new release wall for the first time. 1. Grand Theft Auto IV is currently on track to be biggest rental and retail title of all time. 2. Finished the first week with approx. 4.5% market share in retail, which is up from the typical 1.0-1.5% share and this trend is continuing. 6. Moving forward with rollout of approx. 500 better Blockbuster and Rock the Block stores. 1. Product mix and overall consumer experience are much more enticing and early indicators from the pilot are encouraging. 2. Carefully managing the development costs of these new retail formats to achieve a favorable ROI. 1. Encouraged by the numbers, about 8-12% incremental lift in revenues and about 3-5% growth in active members in these new retail formats, all without any advertising. 6. Development of Digital Platform: 1. Plan is to become preferred source for digital media entertainment by making it more accessible and more convenient for the ultimate customer. 1. Believes Co. is well positioned to accomplish this goal. 2. Pushing forward in two related ways as part of digital transformation. 1. Actively exploring options to acquire digital entertainment distribution rights that Co. knows would be appealing to customers. 2. Actively exploring options to distribute that entertainment content to customers via many different digital platforms that are available and emerging in the marketplace. 3. Acquisition of Movielink provided both digital content and a distribution tool. 1. Movielink integration is going well and proceeding as planned. 2. Has a new online service in testing and beta testing now and planning to make it available to all customers in June. 3. Extensive library of over 9,000 titles gives Co. one of largest digital VOD and [DVD] electronic sell-through libraries in marketplace. 4. Getting ready to test launch next month Co.'s digital download kiosk. 1. Has signed a pilot test agreement with NCR Corporation. 2. NCR will provide the kiosk for this pilot launch. 3. Jointly holding talks with makers of portable devices to offer a device along with this new kiosk service. 7. Subscription Content: 1. Actively exploring opportunities to acquire a content and to develop partners for distribution to: 1. PC. 2. Portable device. 3. Home.

S2. 1Q08 Financial Review (T.C.) 1. Results: 1. Net income increased by $94m to a positive $45m. 2. Adjusted EBITDA more than tripled to $115m. 1. Significant bottom line profit improvement is a direct result of strategic actions Co. has pursued over the last three quarters. 3. First time in five years growth in rental comps in US and abroad, domestic same-store retail revenues grew by about 20%. 4. YoverY Adjustments: 1. Sale of GAMESTATION in May of last year, …