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Source Interlink Inks DVD Distribution Deals with 12 Retailers

BONITA SPRINGS, Fla. -- Farm Fresh, Weis Markets, and Penn Traffic are among the 12 supermarket chains that have reached agreements with Source Interlink Cos., Inc., a provider of home entertainment products and marketing services based here, to distribute and market DVDs.

The DVDs will be merchandised through a combination of Source Interlink--manufactured front end checkout displays comprising about 70,000 pocket positions, as well as inline displays and freestanding displays.

The arrangement and location of the DVD point-of-purchase wire displays will vary slightly at each chain. Generally a checkout display for DVDs will contain six pocket positions, with about five DVD packages fitting in each pocket. The number of displays per store varies based on the amount of checkout lanes in a store. Source Interlink said it plans to include DVDs supplied by all the top Hollywood movie studios.

George Nobbe, Source Interlink s.v.p., marketing, said in a statement: "These agreements to supply DVDs to these leading chains demonstrate the favorable reception Source Interlink's marketing strategy has received from retailers, following our merger with Alliance Entertainment. Our strong retailer relationships appear to have strengthened Alliance Entertainment's market position and brought an entirely new category to the retail front end checkout. Source and Alliance have been together as one company for little more than one month. We have accomplished a great deal in a very short period and are pleased with progress to date, but believe there is much more to follow. We expect to be able to announce additional DVD programs in the near future."

Also being introduced in a number of select stores will be new Entertainment Center displays for magazines, books, and CDs, as well as DVDs with signage, improved lighting, and promotional availabilities. The Entertainment Center is a modular display system created by Source Interlink's custom wood business.

According to Nobbe: "Source Interlink has built a model that allows it to offer complete category management of home entertainment products, including the design, manufacture, shipment, and installation of display fixtures for those same products sold at retail. Our full-service platform provides strategic operating synergies that serve as a key driver for strong, long-term growth."
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