BTP Terminates Merger Agreement with Image Entertainment Inc.

LOS ANGELES--(Business Wire)--
BTP Acquisition Company LLC ("BTP") today notified Image
Entertainment Inc. (NASDAQ: DISK) ("Image") that BTP had exercised its
right to terminate the Amended and Restated Agreement and Plan of
Merger dated June 27, 2008 (the "Merger Agreement") between Image and
BTP, as the February 5, 2008 deadline to consummate the merger has
expired. At the time of termination, Image had failed to satisfy
certain conditions to BTP's obligations to complete the merger.

BTP also notified Image that BTP believed it was in compliance
with all of its obligations under the Merger Agreement. BTP further
reserved all rights and remedies against Image in connection with the
Merger Agreement and BTP's termination thereof.

Counsel to BTP and CT1
Susan H. Tregub, Esq., 310-286-7200
Fax: 818-474-8522

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