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NECA Expands into Content Development

NECA Acquires Major Majority of Movie Gallery, Inc. Assets

Leading Entertainment Manufacturer Plans Expansion into Content Development and Distribution Targeting Niche Markets

NEW YORK, Dec. 9, 2010 -- National Entertainment Collectibles Inc. (NECA), one of the leading manufacturers and distributors of entertainment-related products, announced today that it has acquired the vast majority of the assets for Movie Gallery Inc., which includes Hollywood Video, Movie Gallery and Game Crazy brands. This acquisition represents an important expansion for the company from merchandising to content development and distribution.

Since 1988 when the first Hollywood Video store opened, Movie Gallery Inc. has forged a relationship with over 50 million customers in the US and Canada as the second largest video chain in the country. NECA will be continuing that relationship, presenting customers with exclusive, unparalleled offerings including exclusive content and merchandise as well as in-home and theatrical access to Hollywood premieres.

"Our company is about giving unique entertainment offerings at a fair price to fans of movies, games and pop culture," said Joel Weinshanker, President and COO of NECA. "When the opportunity arose to be able to bring this philosophy to such a substantial and loyal base, our choice was very clear."

In the coming weeks, NECA will have partnership announcements for genre-specific kiosk launches (in the spirit of Redbox and Blockbuster) and streaming content (in the spirit of Netflix) that will be unrivaled in the industry. In addition to the Hollywood Video, Movie Gallery and Game Crazy brands, NECA also recently purchased Reel.com, which was originally purchased by Hollywood Video for $100 million dollars.

About NECA Inc.

NECA Inc. operates as a media and entertainment company in the United States and Internationally. It now operates in three segments: Consumer Products, Filmed Entertainment and Online Retailing/Digital Distribution. The Consumer products segment is a leading manufacturer and distributor of Entertainment related products, dominating the specialty market. Utilizing its position, NECA has for many years worked with its IP partners to ensure maximum success in movie, DVD and game role-outs. The filmed entertainment segment is investing in existing and producing and distributing new theatrical projects that will benefit from NECA's unique and proprietary distribution model. The online retailing/digital distribution segment leverages NECA's properties and brands to extend our reach while providing an immersive, cross platform entertainment experience through subscription and individual transaction models.

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