Image Entertainment Signs Exclusive Deal to Distribute The Source Hip-Hop Hits Series, the Music Industry's Top-Selling Hip-Hop Compilation Albums

Business Wire, Feb 24, 2004

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CHATSWORTH, Calif.--(BUSINESS WIRE)--Feb. 24, 2004

Image Entertainment, Inc. (Nasdaq:DISK):

-- Having Shipped in Excess of 4 Million Units of Hip-Hop Hits

Volumes 1-7, The Source Moves Aggressively to Expand its Brand

in Music With Image Entertainment through the Release of

Multiple Projects

-- Volumes 8, 9 and Box Set of 25 Years of Hip-Hop Hits Planned

for Coming Fiscal Year

Image Entertainment, Inc. (Nasdaq:DISK), a leading licensee and distributor of DVD programming in North America, and an emerging audio distributor, announced an exclusive audio distribution deal with The Source, a leading hip-hop and youth lifestyle international media/entertainment company.

The multi-title audio agreement begins with the anticipated June 29, 2004, release of Hip Hop Hits Volume 8, the latest title in the successful CD series. The Company contemplates a minimum of two additional releases through December of 2004, including Volume 9 and a definitive box set with bonus materials representing 25 years of Hip-Hop. With platinum and gold titles, and sales exceeding 4 million units, representing over $40 million at wholesale, the firmly established Hip Hop Hits line is one of the most successful CD compilation series on the market and was previously distributed by Def Jam Records.

"With the current disarray happening at major record labels, the time is ripe for independent distributors to make their mark in Hip-Hop," said David Mays, CEO of The Source. "As Hip-Hop music and culture evolves back to its indie roots, The Source is extremely proud to align ourselves with a strong, proven and committed distribution partner such as Image Entertainment."

"The agreement with The Source is further evidence of Image's determination and commitment to significantly grow our presence in the audio format while continuing to aggressively expand our DVD business," explained Image President and CEO Martin W. Greenwald. "Retail has been very supportive of the brand, and I look forward to working with David Mays to take his programming to new sales levels through the Image system. We will be working with The Source to create compelling programs and expand the audience for Hip-Hop and urban entertainment. This is a very important agreement for Image, and all of us look forward to working with this world-class brand."

About The Source

Founded in 1988, The Source Magazine has grown from a one-page newsletter into the nation's number one selling music magazine with a total audience of approximately nine million readers each month (Source: 2003 MRI 15 ). The Source empire has expanded to include nationally syndicated The Source Magazine Radio Network, The Source Clothing Company, the platinum-selling Hip-Hop Hits series of compilation CDs, the annual "The Source Hip-Hop Music Awards," the award-winning www.thesource.com and The Source Youth Foundation. Over the past eight years, The Source has achieved consistent rate base increases while growing revenues at an annual rate of approximately 30%.

About Image Entertainment

Image Entertainment, Inc. is a leading licensee and distributor of DVD programming in North America with more than 2,500 exclusive DVD titles, and an emerging audio distributor with a growing library of audio releases in domestic release. The Company also has exclusive videocassette, broadcast, video on demand, audio, streaming video and download rights for many of its exclusive properties. The Company is headquartered in Chatsworth, California, and has a domestic distribution facility in Las Vegas, Nevada. Image distributes internationally via sublicense agreements for available programming on DVD and videocassette as well as broadcast. For more information on Image Entertainment, Inc., please go to www.image-entertainment.com.

Forward-Looking Statement

This press release may contain forward-looking statements, which are based on the Company's current expectations, forecasts and assumptions. In some cases forward-looking statements may be identified by forward-looking words like "would," "intend," "hope," "will," "may," "should," "expect," "anticipate," "believe," "estimate," "predict," "continue," or similar words. Forward-looking statements involve risks and uncertainties, which could cause actual outcomes and results to differ materially from the Company's expectations, forecasts and assumptions. These risks and uncertainties include risks and uncertainties not in the control of the Company, including, without limitation, the current economic climate and other risks and uncertainties, including those enumerated and described in the Company's filings with the Securities and Exchange Commission, which filings are available on the SEC's website at www.sec.gov. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.