May 12, 1999

EMERYVILLE, CA (May 12, 1999) - Reel.com (http://www.reel.com, NASDAQ:HLYW), the leading online movie store, announces expansions to its "Off Hollywood" section, which is designed to suit the interests of lovers of independent and foreign film. In partnership with indieWIRE, the vital link for indie cinema, Reel.com will increase its coverage of leading film festivals and add "Indie Update," a weekly news feed with the latest buzz from the independent film world. This launch is in conjunction with the opening of the 1999 Cannes Film Festival.

"This partnership reinforces Reel.com's commitment to both content and commerce," said Jeff Jordan, president of Reel.com. "By coupling indieWIRE's valuable content with our proprietary movie overviews, editorial features, and movie recommendations, Reel.com's 'Off Hollywood' will be a place where movie lovers can explore the cutting edge of filmmaking."

Reel.com's "Off Hollywood" section offers updated information on the independent cinema and the foreign film scenes along with a broad selection of award-winning, exclusive and hard-to-find titles for sale on VHS and DVD at the guaranteed lowest prices on the Internet. Reel.com's "Indie Update" will include exclusive interviews by indieWIRE reporters with the hottest stars, writers, and directors in the independent film world. Plus, indieWIRE's critics will review the best new films and seek out industry buzz to keep movie lovers plugged into the world of indies.

The "Film Festival" feature in Reel.com's "Off Hollywood" section offers a listing of key film festivals throughout the year, as well as information on past festival winners. Reel.com's coverage of these festivals includes industry gossip, film reviews, and commentary. This area will be enhanced by indieWIRE's news coverage and movie reviews from Cannes, Telluride, Toronto, and Berlin, as well as other film festivals.

The "Off Hollywood" section also features "Independent Counsel," a column offering rants and raves about the latest indie titles, directors, and stars, as well as "International Velvet," which focuses on trends and developments in foreign cinema. Other features include a list of best-selling indie and foreign titles; profiles of indie and foreign directors and actors; articles examining specific film movements and themes; and "quick picks," in which Reel.com highlights both well-known and more obscure foreign and indie films.

About indieWIRE LLC

Emerging from a small core of filmmakers online in 1995, indieWIRE has evolved into the leading voice covering independent films, filmmaking, and film festivals. From coverage of established filmmakers and the mainstream IndieWood biz to reporting on emerging makers creating alternative, underground, and digital work, indieWIRE is the premiere source for news, reviews, interviews and festival reports. Its Internet site -- indieWIRE.com (http://www.indiewire.com) -- is a hub for the worldwide indie community, providing daily content, as well as popular discussion boards and classifieds. The indieWIRE LLC is made up of New York City based editors Eugene Hernandez and Mark Rabinowitz, publisher Karol Martesko (RES Magazine & Silicon Alley Reporter), business affairs exec Ken Tabachnick, and Orlando, Florida based GMD Studios.

About Reel.com, Inc.

Reel.com (http://www.reel.com and AOL Keyword: REEL) is the leading Internet-based movie store offering over 100,000 VHS and 3,200 DVD titles for sale. Reel.com also features proprietary editorial content to help customers select movies. The staff of writers for the site includes film school graduates, video store veterans, screenwriters, and scores of other film experts. Reel.com's current Internet partners include AOL, Excite, @Home Network, Chicago Sun Times, E! Online, Film.com, PlanetOut, Turner Home Entertainment, and TV Guide Entertainment Network. Reel.com was named the "Best Place to Buy Videos" by Yahoo Internet Life magazine. Reel.com is a subsidiary of Hollywood Entertainment, Corp. (NASDAQ: HLYW), dba Hollywood Video, the second largest video store chain in the United States, with over 1,336 stores in 42 states.