Prodigy, Blockbuster Team to Offer Internet Service

Prodigy Communications
Corp.
Monday formed a strategic
alliance with Blockbuster Inc.

Under the agreement, Prodigy will design, develop and host a co-branded
Internet service for Blockbuster. In return, Blockbuster is marketing the
co-branded Internet service and distributing free Prodigy Internet software
at 4,000 Blockbuster stores nationwide.

Subscribers to the service will receive access to a customizable page that
provides the latest entertainment information available, video releases,
and special offers from Blockbuster.

“We are extremely excited to offer this entertainment-oriented service to
our members,” said Gena Kay Sedlak, Blockbuster’s vice president of technology. “Consumers can get a fast and reliable Internet connection
through Prodigy, surf the web and get exposure to Blockbuster.com offerings.”

Initially, Blockbuster will offer co-branded Prodigy Internet CD-ROMs to
its members for free. The first three months of Internet service will cost
$9.95 per month. The fourth month of service and thereafter, the service will $19.95 a month.

“We’ve designed the co-branded service to give Blockbuster members exactly
what they’re looking for,” said David Trachtenberg, Prodigy’s president and chief
operating officer. “It’s all right there on their home page:
entertainment news, a comprehensive Web Guide, communities, plus reliable
access and other special offers only available through Prodigy.”

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