Imaginon Reports Preliminary Financial Results for Year Ended December 31, 2000

Business Wire, March 7, 2001

Business and Technology Editors

SAN CARLOS, Calif.--(BUSINESS WIRE)--March 7, 2001

Results and outlook to be discussed during investor conference

call on 12 March 2001 at 5 PM EST.

Imaginon, Inc. (OTCBB: IMON) today announced preliminary financial results for the year ended December 31, 2000.

Final results for the year may change prior to the Company's 10-KSB filing with the Securities and Exchange Commission later this month. Imaginon management will discuss the year 2000 results and the outlook for the Company's future during its investor conference call and simultaneous Internet audio webcast on www.Vcall.com at 5 PM EST on 12 March 2001.

According to Jim Newcomb, Imaginon's Chief Financial Officer, Imaginon net revenue for the year ended December 31, 2000 was $605,373 compared to $339,790 in 1999. The Company's net loss for the year was $7,925,575, up from a net loss of $7,047,082 in 1999. Including amortization of discounts deemed dividends and a redemption premium on Imaginon's Series F preferred stock, which was redeemed during the first quarter of fiscal 2000, the net loss applicable to common shareholders was $8,777,337, or $0.19 per share in 2000, compared with a net loss per common shareholders of $8,642,269, or $0.22 in 1999. Year 2000 results also include a charge of $496,170 reflecting impaired goodwill associated with Imaginon's acquisition of Imagine Digital Productions, Inc., completed in July 1999.

As more fully outlined in Imaginon's press release dated February 22, 2001 and in a filing with the Securities and Exchange Commission on Form 8-K dated February 28, 2001, the Company has incurred significant operating losses in both 1999 and 2000. These losses have caused Imaginon to operate with limited liquidity and indicate that there could be substantial doubt about Imaginon's ability to continue as a going concern. As a result, Imaginon's auditors have indicated that they may be required to add an explanatory paragraph describing this uncertainty to their independent auditor report on Imaginon's 2000 consolidated financial statements, to be included with Imaginon's annual report on Form 10-KSB.

Imaginon, Inc. is an information technology company focused on developing and marketing broadband and wireless interactive Internet and intranet software systems. ImaginVideo, the company's lead product, is a client-server application for the delivery and management of interactive video over TCP/IP networks. The company's objective is to develop and commercialize the next generation of data retrieval, processing and playback software.

ImaginVideo is a trademark of Imaginon and is protected under U.S. Patents.

Except for the historical information presented herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995, or by the Securities and Exchange Commission in its rules, regulations, and releases. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks include acceptance of Imaginon software by developers and users, the successful development of competitive software to Imaginon's, competitive pricing pressures for Imaginon software and services, and the availability of financing to complete management's plans and objectives. In addition, other risks are detailed in the Company's periodic reports and in its Form S-3 registration statement declared effective by the Securities and Exchange Commission on February 16, 2001. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.