Egami Media and Lightning Content Distribution to Deliver Digital Programming Online and Through Retailer-Based Kiosks; Egami's Exclusive Audio and Video Content to Be Distributed via Lightning's Secure Replication Technology.

CHATSWORTH, Calif. -- Egami Media, Inc., a wholly owned subsidiary of Image Entertainment, Inc. (NASDAQ:DISK), focused on the aggregation and wholesale exploitation of digital rights, today announced the signing of a non-exclusive agreement to distribute its exclusive content through Lightning Content Distribution's retail website and retailer situated kiosks. E[acute accent]Lightning Content Distribution will distribute programs via its secure replication technology that produces media that is indistinguishable from packaged CDs and DVDs. Lightning Content Distribution kiosks will provide retailers with catalog extensions beyond their floor space limitations. The kiosk will provide consumers with a virtual CD and DVD inventory that can be replicated on-demand. Additionally, Lightning's application will be accessible by consumers with a home PC that has a CD or DVD burner and color printer. E[acute accent]"The instant gratification provided by on-demand solutions levels the retail playing field and will make retail floor space limitations a non-issue. While the smaller independents and chain stores will benefit from the virtual inventory a kiosk provides, even larger retailers are looking for ways to deal with the thousands of CD and DVD titles available today. We look forward to offering our programming for sale at brick-and-mortar retail where many of our smaller titles have had limited distribution," said Martin W. Greenwald, president and CEO of Image Entertainment and chairman of the board of Egami Media. "To that end Egami will continue to seek out opportunities in the ever expanding world of digital media distribution." E[acute accent]"We are committed to giving customers a better way to find and buy the music and movies that they love -- whether that be at home, in-store, or on the go," said Sky Kruse, CEO of Lightning Content Distribution. "Customers and retailers have told us that they want the ability to purchase a full DVD movie and use it in their existing DVD players -- without the hassle and delay of waiting for mail-order or finding stores out of stock. And of course there are many new opportunities emerging with portable video players, home media servers, and highly capable gadgets -- we look forward to providing digital supply chain technology to augment the offerings of today's retailers." E[acute accent]Egami Media's growing library of digital programming contains more than 1,400 individual video programs. Live concert programs include "Kiss: Rock the Nation: Live!", "Chick Corea: Rendezvous in New York", "Roy Orbison: Black & White Night" and dozens more. Other titles include IMAX programs from MacGillivray Freeman, stand-up comedy and independent, foreign and silent film classics.

E[acute accent]About Lightning Content Distribution:

E[acute accent]Lightning Content Distribution is a software and services firm focused on the provisioning of digital media and entertainment content. Lightning provides its digital supply chain technology to power delivery of entertainment media on behalf of third parties who maintain a direct sales relationship with consumers: primarily, this means entertainment retailers but can also include consumer electronics vendors and e-commerce companies of various sorts. This turnkey solution integrates easily with the existing retail environment, is readily adapted to the brand of the retail partner, and includes a large and growing library of content already cleared for distribution. More information is available at http://www.lightningcd.com.

E[acute accent]About Egami Media:

E[acute accent]Egami Media, Inc. is a wholly owned subsidiary of Image Entertainment, Inc. (NASDAQ:DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America. Egami focuses on the aggregation and wholesale exploitation of digital rights to a wide array of video content. Egami has acquired all of Image's current and future digital rights and will independently acquire digital rights to third-party content on a going forward basis.

E[acute accent]About Image Entertainment:

E[acute accent]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 over 200 exclusive CD titles in domestic release and approximately 300 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., exclusive video on demand, streaming video and download rights. The Company is headquartered in Chatsworth, and has a domestic distribution facility in Las Vegas. For more information about Image Entertainment, Inc., please go to www.image-entertainment.com.

E[acute accent]Forward-Looking Statements:

E[acute accent]This press release may contain forward-looking statements which are based on the Company's current expectations, forecasts and assumptions. In some cases forward-looking statements may be identified by forward-looking words like "would," "intend," "hope," "will," "may," "should," "expect," "anticipate," "believe," "estimate," "predict," "continue," or similar words. Forward-looking statements involve risks and uncertainties which could cause actual outcomes and results to differ materially from the Company's expectations, forecasts and assumptions. These risks and uncertainties include risks and uncertainties not in the control of the Company, including, without limitation, the current economic climate and other risks and uncertainties, including those enumerated and described in the Company's filings with the Securities and Exchange Commission, which filings are available on the SEC's website at www.sec.gov. Unless otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.