Genius Products Joins Forces with Grodfilm Corporation to Distribute New Film and Television Productions from Filmmaker Dan Grodnik; Agreement Includes Distribution Rights for Home Video, Digital, Television and Theatrical in North America

Business Wire, May 16, 2006

SANTA MONICA -- Genius Products, Inc. (OTCBB:GNPI) has entered into an exclusive five-year distribution agreement with filmmaker Dan Grodnik's Grodfilm Corporation that gives Genius Products the first right of refusal on all future film productions, it was announced today by Genius CEO Trevor Drinkwater. Genius expects to release six to 12 films annually under the agreement, which includes home video, digital, television and theatrical distribution rights throughout North America.

The economic model associated with this agreement is consistent with Genius Product's objective to significantly improve revenue and margin on every release. In addition to DVD releases, the films covered by this agreement, together with new films from the recently announced deal with Peace Arch Entertainment and the Wellspring library, give Genius a valuable library of high-quality film content to exploit over a variety of fast emerging digital distribution platforms. Theatrical releases resulting from this agreement will be distributed through The Weinstein Company.

"Dan Grodnik is a driving force behind the independent film industry whose critically acclaimed body of work in theaters and on television spans many genres," said Drinkwater. "His dynamic ability to stay on top of current market demands in genre, style and budget will play a key role in expanding our library of highly marketable films for distribution across many platforms."

"I always try to go into business with people, not companies," said Grodfilm President Dan Grodnik. "Trevor Drinkwater is a dynamic CEO who has put together a remarkable team that puts Genius on the cutting edge of our business."

With a career that began after graduation from USC's Film School, producer Dan Grodnik has worked with almost every major studio as well as with many of the top independent companies. He maintains strong relationships with some of Hollywood's top actors, writers and directors and enjoys a global reputation for his ability to bring quality projects in on schedule and budget. In the late 80s, Grodnik was chairman and CEO of National Lampoon. During his tenure, the company produced NATIONAL LAMPOON'S CHRISTMAS VACATION, starring Chevy Chase; and NATIONAL LAMPOON'S LOADED WEAPON, starring Samuel L. Jackson.

His producing credits include such notable box office hits as: POWDER, starring Sean Patrick Flanery, Mary Steenburgen and Jeff Goldblum; 1969, starring Winona Ryder, Kiefer Sutherland and Robert Downey; and TERROR TRAIN, starring Jamie Lee Curtis and Ben Johnson. Recently, Grodnik was executive producer on COME EARLY MORNING, starring Ashley Judd, which had its world premiere at the Sundance Film Festival; and BOBBY, starring Anthony Hopkins, Demi Moore, Lindsay Lohan and Elijah Wood, which will be released by The Weinstein Company this fall. Currently, Grodnik is producing CAMILLE, starring Sienna Miller and James Franco, for A-Mark Entertainment and The Ruddy/Morgan Organization. At Grodfilms, Dan works closely with packaging agent and manager Mike Greenfield, who plays a key role in casting and attracting top talent, and in the production of many of the company's projects.

ABOUT GENIUS PRODUCTS, INC.

Genius Products, Inc. (OTCBB:GNPI) produces and distributes an ever-expanding library of home entertainment products including DVDs and CDs. Sold in retail outlets nationwide under such well-known brands as Wellspring, Sundance Channel Home Entertainment(TM), NBC News, and Baby Genius(R), the company's products are distributed through the Genius Products Branded Distribution Network, an extensive, proprietary distribution network that extends throughout the U.S. to mass, drugstore, supermarket and specialty retailers. Genius Products recently released on home video The Weinstein Company smash hits, HOODWINKED, the animated family comedy which ranked #1 in consumer sales in its debut week, DERAILED, starring Jennifer Aniston and Clive Owen, which ranked #1 in rentals in its debut week, and WOLF CREEK, an Australian horror film as well as the Oscar nominated film, MRS. HENDERSON PRESENTS, starring Judi Dench and Bob Hoskins.

Genius Products boasts a premiere management team comprised of seasoned executives, formerly with major Hollywood studios, who have steered the company into the forefront of the industry through their landmark exclusive distribution deal with The Weinstein Company.

Upcoming films planned for release by Genius Products include films by The Weinstein Company such as THE MATADOR, starring Pierce Brosnan; DOOGAL, a comical animated adventure with the voices of Jimmy Fallon, Jon Stewart, Whoopi Goldberg and William H. Macy; TRANSAMERICA, starring Felicity Huffman; David Zucker's hilarious new sequel, SCARY MOVIE 4; and THE LIBERTINE, starring Johnny Depp. Potential new releases include a sequel to SIN CITY, SCHOOL FOR SCOUNDRELS, CLERKS II and the highly anticipated film BOBBY.

Safe Harbor Statement

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements. The forward-looking statements reflect assumptions and involve risks and uncertainties that may affect Genius Products' business, forecasts, projections and prospects, and cause actual results to differ materially from those in these forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to the Genius Products' newly implemented Vendor Managed Inventory system, the anticipated timing and financial performance of the Wellspring Library, films from Peace Arch Entertainment, DERAILED, HOODWINKED, MRS. HENDERSON PRESENTS, WOLF CREEK, TRANSAMERICA, THE MATADOR, DOOGAL, THE LIBERTINE and any other statements relating to such new release that are not historical statements of fact. Actual results could vary for many reasons, including but not limited to, the unpredictability of audience demand, the effect of technological change and the availability of alternative forms of entertainment. Other such risks and uncertainties include the matters described in Genius Products' filings with the Securities and Exchange Commission. Genius Products assumes no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.