Article: Movie Gallery Reports 2nd Quarter Net Income of $0.28 Per Diluted Share and Adjusted Net Income of $0.33 Per Diluted Share; Increases Earnings Guidance for 2003.

Business Editors

DOTHAN, Ala.--(BUSINESS WIRE)--Aug. 5, 2003

Movie Gallery, Inc. (Nasdaq:MOVI) today announced financial results for the second quarter and six months ended July 6, 2003. Revenues were $160,998,000 for the second quarter, a 13-week period, up 31.3% from $122,578,000 for the second quarter last year, a 13-week period ended July 7, 2002. Net income rose 69.2% to $9,477,000 from $5,600,000. Net income per diluted share increased 55.6% to $0.28 for the latest quarter from $0.18 for the second quarter of 2002, on a 7.1% increase in weighted average shares outstanding, primarily due to the Company's May 2002 stock offering.

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