MOVIE GALLERY SIGNS FORBEARANCE AGREEMENT WITH
                MAJORITY HOLDER OF ITS 11% SENIOR NOTES

         Notifies Agents of Default Under Second Lien Facility

DOTHAN, Ala., September 4, 2007-- Movie Gallery, Inc. (Nasdaq: MOVI) today
announced that the Company and the holder of a majority of principal amount
of its 11% Senior Notes due 2012, have executed a Forbearance Agreement
effective as of August 31, 2007.  Under the agreement, the majority holder
will forbear (and direct the trustee to forbear) until September 30, 2007
from exercising rights and remedies arising from any defaults occurring or
existing under the Indenture dated as of April 27, 2005.

The Company also announced today that, due to its inability to meet the
financial covenants contained in its first lien credit facility for the
fiscal quarter ending July 1, 2007, it has sent a notice of default to the
agent under its second lien facility.  As a result of the default under the
second lien facility, the Company also sent a notice of default to the agent
under its first lien facility, which default is subject to the Company's
Forbearance Agreement with the first lien lenders, dated July 20, 2007.  The
Company is in discussions with its second lien lenders regarding the current
situation.

About Movie Gallery

The Company is the second largest North American video rental company with
more than 4,499 stores located in all 50 U.S. states and Canada operating
under the brands Movie Gallery, Hollywood Video and Game Crazy.  The Game
Crazy brand represents more than 600 in-store departments and 14 free-
standing stores serving the game market in urban locations across the United
States.  Since Movie Gallery's initial public offering in August 1994, the
Company has grown from 97 stores to its present size through acquisitions and
new store openings.  For more information about the Company, please visit our
website at: www.moviegallery.com

Forward Looking Statements

To take advantage of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, you are hereby cautioned that this release
contains forward-looking statements, including descriptions of the Company's
proposed strategic and restructuring alternatives and liquidity outlook, that
are based upon the Company's current intent, estimates, expectations and
projections and involve a number of risks and uncertainties.  Various factors
exist which may cause results to differ from these expectations.  These risks
and uncertainties include, but are not limited to, the risk factors that are
discussed from time to time in the Company's SEC reports, including, but not
limited to, the Company's annual report on Form 10-K for the fiscal year
ended January 1, 2006 and subsequently filed quarterly reports on Form 10-Q.
In addition to the potential effect of these ongoing factors, the Company's
liquidity outlook is subject to change based upon the Company's operating
performance, including as a result of changes in the availability of credit
from the Company's suppliers, and there can be no assurance regarding the
Company's ability to complete any restructuring or other transaction.  The
Company undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events, or otherwise.

Contacts

Analysts and Investors: Thomas Johnson, Movie Gallery, Inc., 334-702-2400

Media: Andrew Siegel or Meaghan Repko, Joele Frank, Wilkinson Brimmer Katcher,
212-355-4449