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IMAGE ENTERTAINMENT ANNOUNCES PLAN FOR RETURN TO PROFITABILITY

 CHATSWORTH, Calif., March 22 /PRNewswire/ -- Image Entertainment Inc. (NASDAQ-NMS: DISK) announced today that its board of directors has unanimously approved a comprehensive reorganization of its operations and personnel to return to profitability. As part of the reorganization, Image announced a 17-percent reduction in its work force with staffing levels dropping from 94 to 78 employees. The company also stated that it intends to reduce other operating costs and streamline its release schedule to include primarily high-demand titles. Further, the company announced plans to significantly reduce it long-term debt with anticipated cash flow from operations and through meaningful reductions in its extensive laserdisc inventory. Collectively, these actions are expected to reduce annual expenses in excess of $4.5 million. With a one-time restructuring charge of approximately $5 million, in the aggregate, for severance payments and write-downs of inventory and royalty advances, Image expects to report a loss of approximately $9 million on anticipated sales of approximately $59 million for the fiscal year ended March 31, 1993.
 To effect the reorganization, the company announced the promotion of long-term employees Cheryl Lee, Esq., to chief administrative officer, Jeff Framer to chief financial officer (replacing Jerome M. Smolar) and David Borshell to senior vice president-Operations and Rick Linton to senior vice president-Sales/Marketing (replacing former Executive Vice President Lee H. Kasper and former Senior Vice President Wendy Moss). Together with voluntary wage reductions at the executive level, the company expects to realize salary expense savings of approximately $1.5 million in the coming fiscal year. The company also announced the appointment of Kyle Kirkland of Dabney/Resnick & Wagner to the board of directors.
 Greenwald concluded, "In the past our efforts were focused on building a significant presence in the growing laserdisc industry. At this point, we recognize that our revenues will be driven by hardware sales, which are expected to grow at an annual rate in excess of 30 percent, and the release schedule comprised of titles from our multi-year exclusive agreements with Disney, FoxVideo, New Line, Playboy, Voyager (a.k.a. the Criterion Collection) and over 75 other companies. Upcoming releases include blockbuster titles such as 'Pinocchio,' 'The Player,' 'Unlawful Entry,' 'Mr. Saturday Night,' 'Last of the Mohicans' and 'Hoffa.'"
 -0- 3/22/93
 /CONTACT: Cheryl Lee, chief administrative officer of Image Entertainment, 818-407-9100, ext. 256, or Lise Needham of The Financial Relations Board, 415-986-1591, for Image Entertainment/
 (DISK)


CO: Image Entertainment Inc. ST: California IN: SU:

BR-GT -- SF003 -- 8056 03/22/93 08:32 EST
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Publication:PR Newswire
Date:Mar 22, 1993
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