*** Simon Calver to spearhead new era of expansion for Video Island ***

London, 12. July 2005: Video Island, Europe’s leading online DVD rental business, today announced the appointment of a new CEO, Simon Calver. Simon replaces current CEO and co-founder, Saul Klein, who will work directly with Simon and the Board on a transition, and remain with Video Island in a non-executive role.

This move highlights Video Island’s intention to extend its leadership position and further accelerate its growth to become a multi-national platform for on-demand home entertainment services, continuing to expand its reach beyond the letterbox into digital distribution. In order to achieve these objectives, Saul and the Board identified the need to have an experienced multi-territory CEO to lead the next phase of the growth plan, and since the beginning of the year Saul has led the Board’s exhaustive search for the right person.

Simon has a wealth of relevant experience gathered from his time in senior management positions at Riverdeep, Dell, PepsiCola and Unilever. Much of this expertise has been focused on managing fast growth, entrepreneurial business - extremely relevant to Video Island. In his previous role, he was worldwide COO and President at Riverdeep, one of the fastest growing interactive digital education and productivity software companies selling direct to consumers and also into the education market. Before this, he was General Manager and VP of Dell’s UK and Ireland Home and Small Business operations, where he was responsible for a P&L of over a billion US dollars. His leadership experiences with Dell, at one of the world’s leading e-commerce, direct selling and customer service operations, will be a great asset to Video Island.

Prior to this Simon was International VP of Sales Operations for PepsiCola, based in the US for three years, and as General Manager and VP of PepsiCola UK he developed pioneering marketing and branding campaigns, including the international launch of Pepsi Max, Pepsi Blue and development of the Pepsi Music activity. Simon started his career at Unilever in brand management and retail account management.

Saul Klein, co-founder of Video Island commented, “We are absolutely thrilled to welcome Simon on board to complement Video Island’s extremely strong management team of William Reeve and Alex Chesterman. Simon’s experience in direct selling, e-commerce, consumer marketing and high-volume operations will be invaluable in taking Video Island to the next level, and continue to focus on the strategy established in 2003: to build a world-beating platform for delivering on-demand home entertainment services.”

Simon Calver added, “Video Island represents a significant opportunity and I am delighted to be joining a management team and board of blue chip investors with a real passion for growth. I have been impressed by how Video Island has lead innovation in the market, and its ability to date to anticipate new opportunities has been matched by its execution, technology and operations platform. I am looking forward to building on these successes and creating an exciting future ahead.”

Video Island has been one of the great e-commerce success stories of recent years. Launched in September 2003 by Saul Klein, the company has grown to become the leading business in the sector, serving well over 100,000 satisfied subscribers and having been ranked #1 by Computing Which? Magazine in January 2005. Video Island is now handling almost 1.5 million DVD shipments per month, shipping more than one DVD per second, equivalent to over 150 high street stores, and delivering around 35 times more unique films per week than transmitted by Sky Digital.

Video Island pioneered the platform strategy, operating full-service DVD rental businesses for Tesco, ITV, MSN and easyGroup, as well as its own direct consumer brand, Screenselect.co.uk in partnership with the likes of Dixons, Boots, Virgin Megastore, Real Networks and the Radio Times. Online DVD rental already represents 15% of the total rental market and Screen Digest forecasts it will be worth £388m by 2006.

In less than two years, Video Island has successfully raised over £15m in funding from Europe’s leading venture capitalists, Benchmark Capital, Cazenove Private Equity, Index Ventures and EVP, enabling Video Island to lead industry consolidation, including the recently announced acquisition of DVDs365 and merger with ScreenSelect.co.uk in August 2004.


About Video Island
Video Island, launched in September 2003, is a company revolutionising the home entertainment market. Video Island delivers unlimited DVD subscription services to a mass-market, through both its ScreenSelect.co.uk brand, which is distributed by the likes of Boots, Comet, Virgin Megastore, Top Up TV, Toys R Us, Dixons, Currys, Real Networks (RNWK) and Radio Times as well as by operating fully integrated DVD subscription services for some of the UK’s largest national brands such as Tesco, ITV, MSN (MSFT) and easyGroup.

For a flat monthly fee starting at £9.99, ScreenSelect.co.uk allows subscribers to rent as many DVDs as they want. Subscribers keep a revolving library of DVDs that they can exchange as often as they wish. In addition to offering Europe's largest DVD selection with over 33,500 unique titles, ScreenSelect.co.uk offers the latest releases from the day that they come out for DVD rental, which means that someone looking for the latest box office hits is as well catered for as someone looking for a specialist arthouse film. The ScreenSelect.co.uk service has been awarded numerous 5 star ratings including the highest rated service from Computing Which? Magazine in January 2005. In fact 94% of subscribers have recommended the service to friends and collectively contributed over 4 million DVD ratings and written over 100,000 customer reviews.

Video Island has raised over £15 million in venture capital and is backed by global venture capital firms Benchmark Capital, Index Ventures, Cazenove Private Equity and EVP.

www.videoisland.com / www.screenselect.co.uk / www.tescodvdrental.com / www.itvmovieclub.com / www.msndvdrental.com / www.easyCinema.com

For more information, please contact: Louise Ballard or Joanne Cross at Ballard Associates on 020 7727 3223 or 020 7727 3443.

Published on: 12:00AM on 12th July 2005