RNS Number:4616G
Home Entertainment Corporation PLC
16 December 2004



LOVEFiLM.COM ACQUIRES CUSTOMER BASE FROM MOVIECHOICES.COM, ENTERS INTO LONG-TERM
   PRODUCT AND STOCK MANAGEMENT DEAL WITH HOME ENTERTAINMENT CORPORATION AND
              ANNOUNCES EXCLUSIVE MARKETING RELATIONSHIP WITH BCA.

THURSDAY, 16 December 2004 -- LOVEFiLM and Home Entertainment Corporation PLC
(HEC) announce they have reached an agreement whereby LOVEFiLM will acquire the
MOVIECHOICES customer database and HEC in turn will take responsibility for
LOVEFiLM's stock management and procurement operation. This represents a
strategic operational and commercial alliance between the two companies.

In addition, LOVEFiLM simultaneously has agreed an exclusive three-year
partnership with BCA to provide a co-branded online DVD rental service to BCA's
1.5 million UK members.

Mark Livingstone, Chief Executive Officer of LOVEFiLM says, "This is a great
deal for LOVEFiLM and Moviechoices.com, as well as the consumer. By adding the
Moviechoices.com database to the market leader we have established an even
stronger lead in this market. Furthermore, by eliminating the direct competition
between the two companies, we can now work more closely on initiatives to grow
our service. Clearly, the exclusive marketing deal with BCA is a great example
of this. BCA are the experts in marketing entertainment services to a proven
audience - this is the audience that has been the foundation of Moviechoices.com
to date, and now, together we will continue to create and promote co-branded
LOVEFiLM initiatives to that very responsive customer base."

Iain Muspratt, Chairman of HEC, says," We have always been impressed with the
LOVEFiLM operation and believe these arrangements provide an excellent base from
which to participate in this market by drawing on the strengths of all the
organisations involved to the benefit of our customers and all concerned."

Tim Schiffers, Commercial Director of BCA, says, "I am very pleased with what
HEC and BCA have achieved to date with the Moviechoices.com venture, but in this
very competitive market place it was a logical next step for us to now join
forces with the market leader."

Whilst the deal has immediate effect, it is envisaged Moviechoices.com customers
will gradually migrate over to the LOVEFiLM brand.

LOVEFiLM is the only online UK DVD rental service to exceed 50,000 subscribers
(announced November 2004). It has created a number of strategic links with key
high street names including WHSmith, Sainsbury's, Woolworths and MVC, leading
online entertainment retailer CD-WOW, brand partnerships with Sony and
lastminute.com, as well as media alliances with Trinity Mirror Group and Film
Four.

LOVEFiLM.COM allows its members access to unlimited DVDs from a range of more
than 25,000 titles; DVDs can be rented for as long as customers require and are
not subject to fines or late fees. There are three levels of service: Bronze, at
#9.99 a month, which allows subscribers to rent unlimited DVDs, one at a time.
Silver, at #14.99, allows them to rent unlimited DVDs, three at a time; and the
Gold package at #19.99, allows them to rent unlimited DVDs, four discs at a
time. All DVDs are mailed in pre-paid first-class return envelopes. LOVEFiLM has
also generated over 1 million ratings and reviews to date and, according to a
recent survey, 96.8% of customers recommend LOVEFiLM's service to their friends
and family.

- ENDS -

For further information please contact:

Iain Muspratt, Chairman, Home Entertainment Corporation
Tel: 01733 363099 (office)




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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