In 1996 Hollywood decided to establish three regional offices, with one each in Greater Chicago, Greater Houston, and the San Francisco Bay Area.
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In July 1998, CEO Mark Wattles announced Hollywood had purchased Reel.com "in a deal valued at $100 million", which included $30 million in cash to Reel's stockholders; Reel.com was to continue operating independently, and still led by its CEO Julie Wainwright.
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Cineme became the first festival to have DVD distribution in its first year running: Hollywood Video distributed and sold Cineme 2003 and Cineme 2004 nationwide.