Exhibit 99.1

     MOVIE GALLERY ANNOUNCES THE APPOINTMENT OF HOLLYWOOD'S TIMOTHY R. PRICE
            TO EXECUTIVE VICE PRESIDENT, CFO OF THE COMBINED COMPANY

DOTHAN, Ala., June 22 /PRNewswire-FirstCall/ -- Movie Gallery, Inc. (Nasdaq:
MOVI), announces the appointment of Timothy R. Price to Executive Vice
President, Chief Financial Officer of the Company. Price had been Hollywood
Entertainment's Executive Vice President and Chief Financial Officer, having
joined the company in January 2003. Prior to that Mr. Price was with May Co. for
four years, most recently as CFO for Robinson's-May. Prior to May Co., Mr. Price
spent 11 years in accounting and finance at Kohl's and The Limited.

Joe Malugen, Chairman, CEO and President of Movie Gallery, comments, "We believe
the promotion of Tim Price to CFO for the combined company gives us the
additional experience and leadership to maximize opportunities and leverage the
strengths of these two great companies. We are very pleased with the integration
process to date. We have aligned and are consolidating several key areas such as
Store Development, Legal, Game Crazy(R), Distribution and Finance. Our
leadership teams are now in place and we are moving quickly on targeting
efficiencies and implementing best practices."

Business Update

"Already in progress are key efficiencies for the Game businesses of both
companies, starting with the closure of 51 non-profitable Game Crazy stores,"
said Mr. Malugen. "After evaluating all lower performing Game Crazy stores, 51
were targeted for closure by the end of June 2005. Also targeted in the game
business integration is the re-branding of Movie Gallery's 23 Game Zone(R)
stores with the more established national Game Crazy brand."

"For the second quarter of 2005, we were originally forecasting our same-store
sales to be down slightly; however, the recent weakness in the home video
release schedule is having a significant adverse impact on our results," said
Malugen. "In addition, with the theatrical box-office in its 17th week of a
slowdown and enduring its worst slump in two decades, we believe that the
flow-through of an unimpressive slate of titles will continue to adversely
impact our stores in both the rural and urban markets over the next few months."



About Movie Gallery

Movie Gallery is the second largest North American video rental company with
annual revenue in excess of $2.5 billion and approximately 4,700 stores located
in all 50 U.S. states, Mexico and Canada.

Forward-Looking Statements

This release contains forward-looking statements, including statements relating
to Movie Gallery's recent acquisition of Hollywood Entertainment. The
forward-looking statements in this release are based upon the Company's current
intent, estimates, expectations and projections and involve a number of risks
and uncertainties. These risks and uncertainties include, but are not limited
to: (i) our ability to integrate appropriate functions of Hollywood; (ii)
effects of the long-term indebtedness that was incurred to fund the acquisition
of Hollywood; (iii) the number of new store openings during the year; (iv)
declines in same-store revenues; (v) the Company's actual expenses differ from
estimates and expectations; (vi) competitive pressures are greater than
anticipated; (vii) availability of new movie releases priced for sale may
negatively impact consumers' desire to rent movies; (viii) movie studios could
change their distribution policies; (ix) video game hardware and software
manufacturers may fail to introduce new products; (x) Movie Gallery's and
Hollywood's information systems may fail to perform as anticipated; (xi)
consumer demand for movies and games may be less than expected; (xii)
availability of movies and games may be less than expected; (xiii) competitive
pressures, including technological advances, may be greater than anticipated;
(xiv) the Company may expand its investment in existing strategic initiatives
for alternative delivery of media content or choose to invest in significant new
strategic initiatives; (xv) risks and costs related to integrating acquisitions;
and (xvi) other risks described in Movie Gallery's filings with the Securities
and Exchange Commission, including the detailed factors discussed under the
heading "Cautionary Statements" in Movie Gallery's annual report on Form 10-K
for the fiscal year ended January 2, 2005. The Company undertakes no obligation
to update any forward-looking statements, whether as a result of new
information, future events, or otherwise.

     Contact:
     Michelle Lewis
     Movie Gallery, Inc.
     (334) 702-2416

     Thomas Johnson
     Movie Gallery, Inc.
     (334) 702-2400

SOURCE  Movie Gallery, Inc.
    -0-                             06/22/2005
    /CONTACT:  Michelle Lewis, +1-334-702-2416, or  Thomas Johnson,
+1-334-702-2400, both of Movie Gallery, Inc./
    /Web site:  http://www.moviegallery.com