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Redbox names Solectron worldwide manufacturer of DVD kiosks

Apr 28, 2005

Selection positions Redbox for rapid 2005 expansion

Redbox, the USA's leader in providing automated DVD rental services, announced an agreement choosing Solectron Corporation (NYSE:SLR) as the exclusive worldwide manufacturer of Redbox's fully automated DVD rental kiosks. The newly designed system manufactured by Solectron will immediately appear in markets.

"We are thrilled to be working with Solectron to provide increased DVD capacity and better overall functionality to our consumers," said Gregg Kaplan, venture leader for Redbox. "The superior design and capabilities of this new Redbox DVD kiosk will enhance both our consumers' and retailers' experience, and will help ensure we reach our plan to deploy 1,200 Redbox kiosks domestically in 2005." Over the last three years, Redbox has explored numerous designs and manufacturers and tested several in market, but has determined that its new Redbox design together with Solectron as a manufacturing partner provides a superior automated DVD rental kiosk. Furthermore, Redbox plans to replace its currently deployed kiosks with the Solectron-manufactured kiosks by the end of this year.

Launched in 2002, Redbox continues to revolutionize the DVD rental industry with a combination of ubiquitous locations and $1 per-night pricing. In 2004, Redbox deployed more than 100 automated DVD rental kiosks in nearly every McDonald's in the Denver, Colo., metro-area. Based upon the outstanding success of Redbox in Denver, McDonald's Corporation has committed to deploying DVD rental kiosks in several new markets in 2005.

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