--- Rohit Khare // MCI Data Architecture (BOS) // khare@mci.net Voice: (617) 960-5131 Blockbuster and MCI Announce Massive 'Free Flix' Customer Loyalty ProgramProgram to provide value-added benefits and drive video rental traffic DALLAS and ARLINGTON, Va., June 2 /PRNewswire/ -- Blockbuster and MCI Telecommunications Corp. (Nasdaq-NNM:MCIC) today announced that the two companies have mounted a massive, nationwide customer loyalty program to provide free movie benefits to MCI customers and to drive video rental traffic to Blockbuster's nearly 4,000 domestic video stores. Called ``Free Flix,'' the national customer program offers a certificate good for one free movie rental at Blockbuster for every $25 consumers spend monthly on MCI products and services. In addition, new MCI customers receive a special gift of four free movie rentals upon enrollment. Customers can enroll in the Free Flix program by simply calling toll free 1-800-FREE-FLIX, or by visiting its web site at www.freeflix.com. Freestanding displays will be in place in Blockbuster stores starting tomorrow. ``MCI is delighted to announce this exciting partnership that brings together leaders in the telecommunications and home video entertainment industries,'' said Terry Macko, vice president of partner marketing. ``Free Flix is an outstanding example of the way we can bring exclusive value-added benefits to our customers and Blockbuster's members.'' Tom Byrne, Blockbuster's vice chairman, said, ``Blockbuster is committed to growing and supporting its video rental business, and partnerships such as this are an important tool to accomplish that goal. Free Flix will drive traffic and provide people an opportunity to experience the incredible selection and benefits available only in Blockbuster stores.'' Both companies said they are exploring a range of additional global opportunities that will benefit and grow their respective companies. Blockbuster operates nearly 6,000 video and music stores in 27 international markets.VNet: 370-5131 Fax: (617) 960-1009