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Contact: Cindy Roberts (662) 844-5036 ext. 227
For Immediate Release:  9/29/2005

New York State Teacher’s Retirement System asked to dump plummeting XXX stock

(Tupelo, MS) - The American Family Association (AFA) has asked the New York State Teachers' Retirement System (NYSTRS) to drop its claimed 1,077,400 shares of devaluing stock in Movie Gallery, the nation's largest retailer of XXX-rated porn films.

NYSTRS invests in funds and stocks on behalf of its teacher members, and NYSTRS financial reports list over $28 million dollars of market value Movie Gallery stock.

“By investing in hard-core porn, the New York State Teachers' Retirement System is putting its stamp of approval on the XXX-pornography industry,” said Randy Sharp, director of special projects for AFA. “We’ve asked Executive Director George Philip to divest NYSTRS of Movie Gallery stock and get out of the porn business.”

Sharp said Movie Gallery stock has also become a financial liability for NYSTRS. Movie Gallery stock has lost nearly seventy percent of its value in the past three months, from $34 per share in mid-June to just over $10 this morning. And the forecast is not looking any better.

This week, Movie Gallery reneged on plans to pay shareholder dividends this quarter, in order to help pay off massive debts. Brokerage giant Bear Stearns recently reinitiated coverage of Movie Gallery at "Underperform" and set a target price of $7, signaling prospects of continuing financial troubles for the company.

“For two good reasons - association with hard-core pornography and plummeting financial value - NYSTRS should distance itself from Movie Gallery stock,” warned Sharp. “Failure to do so will result exponentially in further loss of teacher retirement funds.”

American Family Association is a pro-family advocacy organization with over two million online supporters.

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