Image Entertainment Updates Status of Acquisition and Announces Additional $1 Million...

Image Entertainment Updates Status of Acquisition and Announces Additional $1 Million Deposit from BTP Acquisition Company

CHATSWORTH, Calif.--(Business Wire)--Image Entertainment, Inc. (NASDAQ: DISK), a leading independent
licensee, producer and distributor of home entertainment programming
in North America, announced today that the parties have agreed to
extend the current January 14, 2008 outside closing date for the
pending acquisition of Image by BTP Acquisition Company, LLC, an
affiliate of David Bergstein, to Friday, February 1, 2008.

In connection with the extension, BTP has agreed to deposit $1
million with Image. This deposit, combined with the $2 million
deposited by BTP with Image in December relating to the prior
extension, will bring the total deposit received from BTP and being
held in a trust account to $3 million.

Image continues to believe that this transaction is in the best
interest of its stockholders and is working with BTP to promptly
complete the transaction.

About Image Entertainment:

Image Entertainment, Inc. is a leading independent licensee,
producer and distributor of home entertainment programming in North
America, with approximately 3,000 exclusive DVD titles and
approximately 250 exclusive CD titles in domestic release and
approximately 450 programs internationally via sublicense agreements.
For many of its titles, the Company has exclusive audio and broadcast
rights and, through its subsidiary Egami Media, Inc., has digital
download rights to approximately 2,000 video programs and over 250
audio programs containing more than 4,000 tracks. The Company is
headquartered in Chatsworth, California. For more information about
Image Entertainment, Inc., please go to www.image-entertainment.com.

Forward-Looking Statements:

This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
relating to, among other things, the proposed merger transaction
described in this press release. These statements may be identified by
the use of words such as "will," "may," "estimate," "expect,"
"intend," "plan," "believe," and other terms of similar meaning in
connection with any discussion of future operating or financial
performance. All forward-looking statements are based on management's
current expectations and involve inherent risks and uncertainties,
including factors that could delay, divert or change any of them, and
could cause actual outcomes and results to differ materially from
current expectations.

These factors include, among other things, our inability to raise
additional working capital, changes in debt and equity markets,
increased competitive pressures, changes in our business plan, changes
in the retail DVD and entertainment industries, and our inability to
effectively manage future growth from the CTI Holdings distribution
agreement. For further details and a discussion of these and other
risks and uncertainties, see "Forward-Looking Statements" and "Risk
Factors" in our most recent Annual Report on Form 10-K, and our most
recent Quarterly Report on Form 10-Q. In addition, we may not be able
to complete the proposed transaction on the amended terms or other
acceptable terms, or at all, due to a number of factors, including (1)
the occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement; (2) the outcome
of any legal proceedings that have been or may be instituted against
Image Entertainment and others following announcement of the proposal
or the merger agreement; (3) the inability to complete the merger due
to the failure to satisfy conditions to the completion of the merger,
(4) the failure to obtain the necessary financing provided for in
commitment letters received prior to execution of the definitive
agreement; (5) risks that the proposed transaction disrupts current
plans and operations and the potential difficulties in employee
retention as a result of the merger; (6) the ability to recognize the
benefits of the merger; (7) the amount of the costs, fees, expenses
and charges related to the merger and the actual terms of certain
financings that will be obtained for the merger; and (8) the impact of
any indebtedness incurred to finance the consummation of the merger.
Many of the factors that will determine the outcome of the subject
matter of this press release are beyond Image Entertainment's ability
to control or predict. Unless otherwise required by law, we undertake
no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or otherwise.

Image Entertainment
Jeff M. Framer, 818-407-9100 ext. 299
jframer@image-entertainment.com

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