Image Entertainment and CT1 Holdings Reach Agreement Allowing Continued Distribution...

Image Entertainment and CT1 Holdings Reach Agreement Allowing Continued Distribution of Certain ThinkFilm Programming

CHATSWORTH, Calif.--(Business Wire)--
Image Entertainment, Inc. (NASDAQ:DISK), a leading independent
licensee, producer and distributor of home entertainment programming
in North America, announced that it has reached an agreement with CT1
Holdings, LLC, an affiliate of David Bergstein and parent of ThinkFilm
and Capitol Films, to continue distribution of certain agreed-upon new
ThinkFilm-branded acquisitions and existing catalogue titles.

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 300
audio programs containing more than 4,500 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 CT1 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. 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, Inc.
Jeff M. Framer, 818-407-9100 ext. 299
jframer@image-entertainment.com

Copyright Business Wire 2008