EXHIBIT 99.1


[MOVIE GALLERY LOGO]                         Contact: Financial: Thomas Johnson
                                                            Movie Gallery, Inc.
                                                               (334) 702 - 2400

                                                        Media: Andrew B. Siegel
                                         Joele Frank, Wilkinson Brimmer Katcher
                                                        (212) 355-4449 ext. 127

              MOVIE GALLERY, INC. ANNOUNCES PRICING OF OFFERING OF
                          $325 MILLION OF SENIOR NOTES

DOTHAN, Ala., April 26, 2005 -- Movie Gallery, Inc. (Nasdaq: MOVI) announced
today the pricing yesterday of its institutional private placement of $325.0
million of 11% senior notes due 2012. The company will also enter into a new
senior secured credit facility in connection with the issuance of the notes. The
offering and the entry into the new credit facility is expected to close on
April 27, 2005.

The company intends to use the proceeds of this offering to fund part of the
cash consideration for the acquisition of Hollywood Entertainment Corporation
("Hollywood"), to finance a tender offer for Hollywood 9.625% Senior
Subordinated Notes due 2011, to repay certain existing indebtedness of Hollywood
and Movie Gallery, and to pay related fees and expenses.

This financing structure for the foregoing consists of the following:

         -        $75 million revolving credit facility (the "Revolver"), with a
                  $25 million accordion feature, which will bear interest at an
                  initial rate of LIBOR plus 2.75%

         -        $95 million term loan A (the "Term Loan A"), which will bear
                  interest at an initial rate of LIBOR plus 2.75%

         -        $700 million term loan B (the "Term Loan B"), which will bear
                  interest at an initial rate of LIBOR plus 3.00%

         -        $325 million 11% senior notes (the "Notes") due 2012.

This release shall not constitute an offer to sell, nor a solicitation of an
offer to buy any of these notes. The notes subject to the proposed private
placement have not been registered under the Securities Act of 1933, as amended,
or any state securities laws, and are being offered only to qualified
institutional buyers under Rule 144A of the Securities Act and to non-U.S.
persons under Regulation S of the Securities Act. Unless so registered, the
notes may not be offered or sold in the United States except pursuant to an
exemption from the registration requirements of the Securities Act and
applicable state securities laws.




This news release contains "forward-looking statements" regarding the proposed
private placement. These forward-looking statements involve a number of risks
and uncertainties. Among the important factors that could cause actual results
to differ materially from those indicated in such forward-looking statements
include uncertainties relating to market conditions for corporate debt
securities generally, for the securities of companies in the specialty home
video retail industry and for the notes being offered by the company in
particular.

ABOUT MOVIE GALLERY
Movie Gallery, Inc. is the third-largest company in the specialty video retail
industry based on revenues and the second-largest in the industry based on
stores. As of April 3, 2005, Movie Gallery owned and operated 2,543 stores
located primarily in the rural and suburban markets throughout North America,
including over 200 stores in Canada. Since the company's initial public offering
in August 1994, Movie Gallery has grown from 97 stores to its present size
through acquisitions and new store openings.


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