Nation's Largest Owner/Operator of DVD Rental Kiosks for Grocery Store Channel Completes $10 Million Funding;
The New Release™ Plans Aggressive Expansion in 2006

HOUSTON -- TNR Entertainment Corp., the nation's largest owner/operator of automated DVD rental kiosks in major grocery stores under the name "The New Release," has completed the sale of $10 million in preferred stock to D.E. Shaw Laminar Portfolios, L.L.C., a member of the D.E. Shaw group, a leading specialized investment and technology development firm, with approximately $19 billion in aggregate capital. Investment banking firm Brookwood Associates, L.L.C. served as advisor to The New Release on the transaction. The New Release plans to use the capital to fund an aggressive expansion of its retail locations next year, with the goal of more than doubling the number of DVD rental kiosks while penetrating new geographical markets, according to Richard B. Cohen, chief executive officer.Proceeds will also be used to expand the infrastructure necessary to support the Company's planned growth.

The privately-held, Houston-based company dominates the alternative grocery store channel for DVD distribution, currently serving over 100,000 customers monthly in five states. The Company is backed by an institutional investor group led by Celerity Partners. "This funding means we can satisfy the pent-up retail demand for our kiosks while accelerating the rollout in new markets nationally," Cohen stated. "The resulting increased cash flow should provide us with capital to expand our market presence even more aggressively in 2007, as well as to evaluate new technologies and to provide even greater economies of scale." Steve Adamson, Managing Partner of Celerity Partners, said, "The addition of such a well-capitalized investor as Laminar is a major step in the evolution of The New Release, allowing the company to capitalize not only on the broader $27 billion DVD industry, but more importantly, on a rapidly growing sector that focuses on alternative means of distribution to effectively meet consumers' needs." The Company's kiosk-based rental model allows consumers to access DVDs in a more convenient way -- at the grocery store -- than in separate brick-and-mortar retail locations or mail-based subscription formats. In addition, with DVD rentals ranging from fifty cents to $1.50 a day and no late fees or penalties attached, the model offers great value to consumers. The New Release's kiosks contain approximately 200 top movie titles and store a total of 400 to 1,000+ DVDs in inventory, in a store footprint approximately as small as seven square feet.

The Company currently has agreements with many of the nation's leading grocers, including Kroger, Safeway, HEB, and Publix, representing a total addressable market in excess of 20,000 grocery locations. David M. Felts, Managing Director of Brookwood Associates, added, "TNR offers the compelling characteristics of a dominant position in the rapidly growing alternative delivery market for DVD rentals, a seasoned entertainment management team who have run large studio home video businesses, and the intellectual property developed from operating large numbers of DVD kiosks in grocery channels that yield attractive profits for TNR's grocery partners. We were pleased to utilize our existing knowledge of this sector to assist the Company to secure attractive financing from an investor with such substantial financial resources." TNR/The New Release was founded in 2002 by John M. Osborne, who continues to serve as President.Since its formation, the Company has initiated several firsts in the kiosk-based rental industry, including development of the first all-wireless kiosk, the first DVD-only kiosk, innovative pricing structure, and specialized software. About Laminar D.E. Shaw Laminar Portfolios is a member of the D.E. Shaw group, a New York-based specialized investment and technology development firm whose activities center on various aspects of the intersection between technology and finance. With approximately $19 billion in aggregate capital, the D.E. Shaw group is a recognized leader in the alternative investment management arena and was recently named "Best Alternative Investment House" by Euromoney magazine.

About Brookwood Associates Brookwood Associates was founded in 1989 and is one of the nation's leading privately-held investment banking firms dedicated to serving middle-market companies. It assists clients in evaluating and executing a broad range of complex transactions, including mergers, acquisitions, divestitures, restructurings, and financings. Brookwood is based in Atlanta and Charlotte, N.C. Additional information is available at www.brookwoodassociates.com.

About Celerity Partners Celerity Partners is a private equity fund whose objective is to build businesses, in partnership with management, to preeminence in their respective markets. Since its inception in September 1995, Celerity has invested in over 50 companies, with an aggregate transaction value in excess of $2 billion. Celerity currently manages approximately $200 million of equity capital and has offices in Los Angeles and Menlo Park, Calif. For further information, see www.celeritypartners.com.
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