Genius Products, Inc. Reports Record Revenue, Net Income and EBITDA in the Second Quarter 2007 for Genius Products, LLC

Business Wire, August 13, 2007

Achieves Record GAAP Net Income of $2.1 Million and Record Adjusted EBITDA of $4.3 Million

Generated Record Gross Revenue of $145 Million before Sales Returns, Discounts and Allowances, an Increase of $30 Million or 27% Compared to the Previous Quarter

Generated Record Revenue of $113 Million, Net of Sales Returns, Discounts and Allowances, an Increase of $30 Million or 36% Compared to the Previous Quarter

Achieves Record Gross Margin of 11%

Expects to Achieve Record Gross Revenue of $490 - $540 Million before Sales Returns, Discounts and Allowances and Continued Profitability in the Second Half of 2007

Adjusts Upwards Full Year 2007 Gross Revenue Guidance Range to $750 - $800 Million from Previous Range of $700 - $800 Million

SANTA MONICA, Calif. -- Genius Products, Inc. (OTCBB:GNPI) today announced record results for the three and six months ended June 30, 2007. For the three months ended June 30, 2007, the Company reported that Genius Products, LLC posted strong revenue growth of 36% over the prior quarter and achieved GAAP net income for the first time. All of the discussion items in this release relate to Genius Products, Inc.'s equity investment in Genius Products, LLC and its operating results for the second quarter and first half year ending June 30th, 2007.

Summary Results for the Second Quarter:

* Record gross revenue of $145 million, before sales returns, discounts and allowances

* Returns, Discounts and Allowances at 22%

* Record revenue of $113 million

* Record gross margin of 11%

* Record GAAP net income of $2.1 million

* Record Adjusted EBITDA of $4.3 million

"We are very pleased to report that, as projected, Genius Products, LLC achieved record gross revenue, net revenue, gross profit, net income and Adjusted EBITDA for the second quarter, and continued to improve the leverage and operating efficiencies in our distribution platform," said Stephen K. Bannon, Chairman. "Second quarter revenue was in line with our expectations and we continue to experience strong growth from both The Weinstein Company ('TWC') and our non-Weinstein businesses, with our higher margin non-Weinstein business continuing to grow."

Genius Products, LLC Expects to Achieve the Following 2(nd) Half and Full Year 2007 Results:

* Second half 2007 gross revenue of $490 - $540 million before sales returns, discounts and allowances

* Full year gross revenue guidance of $750 - $800 million before sales returns, discounts and allowances, adjusted upwards from previous guidance of $700 - $800 million

* Full year revenue of $525 - $600 million, net of sales returns, discounts and allowances

* Gross margin to be in the range of approximately 11% for second half of the year; and

* GAAP profitability for the second half of the year and full year.

"The profitable growth we achieved in the second quarter was driven by solid retail strategies, tight controls on shipments and a diversified content offering through traditional and non-traditional channels," stated Mr. Trevor Drinkwater, President and CEO. "Currently we are in the sell-in season for the latter half of 2007, and based upon our orders for the third and fourth quarters we are adjusting upwards our full-year revenue guidance range to $750 - $800 million."

Mr. Drinkwater continued, "In the second half of 2007, we will be offering a strong video release schedule of theatrical titles from The Weinstein Company including Grindhouse - Planet Terror, Grindhouse - Death Proof, 1408, Halloween, Sicko, Who's Your Caddy, The Nanny Diaries, Redline, The Ex, DOA, Last Legion, and Dedication. We also will have a full season of the well established Classic Media holiday titles including Rudolph the Red-Nosed Reindeer, Santa Claus is Coming to Town and Frosty the Snowman, revenue from new content partners, RHI, Sesame Street the Discovery Channel, and revenue from newly launched titles under our Animal Planet and TLC brands. We are expecting a record third quarter and a fourth quarter with gross revenue approximating the gross revenue of our full year 2006. In addition, we believe we will begin to see our revenue and margins increase from our new co-production business and our expanded relationships with anchor partners in interactive, digital and licensing."

Recently Announced Partnerships and Strategic Initiatives Expected to Increase Revenue and Improve Content Offerings and Services in the Latter Half of 2007:

* EMI Music North America's Christian Music Group - opens 2,300 retail stores to Genius

* RHI Entertainment - launch of co-production and exclusive world-wide distribution for home video and digital rights

* Acquisition of Castalian Music - offers a vertically integrated solution for direct response campaigns

* Animal Planet and The Learning Channel ("TLC") from Discovery Communications - provides Genius with exclusive videogram distribution in North America for Animal Planet and TLC branded television properties

* US Digital Distribution Rights from The Weinstein Company - adds U.S. digital rights for TWC feature films and direct-to-video content