Zip.ca and VHQ Entertainment Inc. today announced an agreement whereby Zip.ca will purchase assets of VHQOnline.ca. Financial terms of the agreement were not disclosed.

Under the terms of the agreement, Zip.ca will assume responsibility for serving VHQOnline.ca members. VHQ’s online members will be offered the option of converting immediately to membership in Zip.ca, or continuing their VHQOnline.ca memberships during a three-month transition period.

Effective immediately, VHQOnline.ca members will enjoy:

• Zip.ca’s unbeatable selection of over 36,000 titles, more than three times the title selection available from other services in Canada
• Zip.ca’s unique hybrid shipping system, offering local mailing efficiency in seven Canadian cities (Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal and Halifax) from fully-automated fulfilment centres in Calgary and Ottawa
• Zip.ca’s content-rich website, offering information about movies and TV series, casts and characters - including over one million member-authored reviews and ratings
• Zip.ca’s 7-days-a-week four-way help desk, offering customers quick assistance by telephone, live chat, email and through web-based queries.

Further, as VHQOnline.ca members convert over to Zip.ca, they will also enjoy:

• ZipReturn and ZipRefill: Zip.ca’s online reporting of DVD returns allows qualified members the privilege of ZipRefill, with replacement selections shipped within one business day, allowing more movie rentals each month and faster turnaround.
• Four different membership plans ranging from $10.95/month to $34.95/month, all without due dates or late fees

“We’re delighted to welcome VHQOnline.ca members to Zip.ca. ; We’re confident they will enjoy Zip.ca’s best selection, best service and best value in online DVD services,” said Rick Anderson, President and CEO of Zip.ca. “We’re committed to providing Canadians with the best online DVD service in Canada and this agreement enables us to extend our service to more Canadians.”

This agreement applies only to VHQOnline.ca’s DVD and game rental service. It does not affect customers of VHQ’s retail stores.

About Zip.ca: Zip.ca is Canada’s leading online DVD service, offering the largest selection, best service and best value in DVD rentals. Zip.ca offers Canada’s most extensive DVD library (over 36,000 titles and growing) and best value in DVD rentals. Zip.ca provides members with 24/7 online convenience for creating and managing their own personal ZipLists of must-see DVDs, and delivers thousands of DVDs daily right to members’ doors across Canada. For a low monthly membership fee, Zip.ca provides DVD rentals with no deadlines and no late fees. DVDs can also be purchased at a discounted member price. Since opening its virtual doors to Canadian movie lovers on February 11, 2004, Zip.ca has shipped over 2 million rental DVDs. Based in Ottawa, Zip.ca is a member of the Momentous.ca family of online enterprises, providing customers with high-quality, high-value online services.

Zip.ca Media Contact: Shelagh O’Connor
(613) 866-9956 or shelagh@zip.ca
or
Susannah Kilroy
(416) 515-7517 (ext. 249), Susannah@zip.ca

VHQOnline.ca Media Contact:
Andrew Siegel
of Joele Frank, Wilkinson Brimmer Katcher
212-355-4449 ext. 127