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IMAGE REDUCES LONG-TERM DEBT BY $2 MILLION -- ACCELERATES PAYDOWN WITH ADDITIONAL VOLUNTARY PAYMENT

 CHATSWORTH, Calif., Nov. 15 /PRNewswire/ -- Image Entertainment Inc. (NASDAQ-NMS: DISK), one of the largest licensees and distributors of programming on laserdisc in the United States, today announced that it reduced its long-term debt by $2 million. The $2 million reduction represented a $1 million mandatory repayment and a $1 million voluntary repayment. The debt was first reduced in August when the company made a $1.5 million voluntary repayment.
 The long-term debt was originally secured pursuant to a 1991 private placement of $15 million of 11 percent senior notes due Nov. 15, 1996, and $5 million of 13 percent secured subordinated notes due Nov. 15, 1998. The proceeds were used to retire approximately $14.2 million in short-term debt and to increase working capital.
 Martin W. Greenwald, Image's chairman and chief executive officer, stated, "Our strong six-month performance has enabled us to use cash flow from operations and inventory reductions to further reduce long- term debt. In March we implemented a restructuring plan which included a goal of accelerated debt reduction. We met the goal in August when we made our first voluntary pay-down of $1.5 million, resulting in annual interest expense savings of approximately $165,000 exclusive of a $45,000 prepayment penalty. Now, concurrent with the first mandatory payment, we've met our goal again by voluntarily paying down another $1 million of debt. Exclusive of a $20,000 prepayment penalty this voluntary payment will result in annual interest expense savings of approximately $110,000, the mandatory repayment will result in annual interest expense saving of approximately $120,000, for an aggregate interest expense savings of $330,000. We will continue to monitor cash-flow from all sources with additional voluntary paydowns in mind. We're striving for bottom-line performance through aggressive cost control -- the company benefits and our shareholders benefit."
 Image Entertainment Inc. is one of the largest licensees and distributors of programming on laserdisc in the United States, with an estimated 35 percent share of the domestic laserdisc market and the most extensive library of titles available in the industry. Image has exclusive licensing and distribution agreements with some of the most important suppliers of movies, music videos, and specialty programming, including Disney's Buena Vista Home Video, FoxVideo, New Line Home Video, The Voyager Co., Orion Home Video, Playboy Home Video, and Turner Home Video. The company's common stock trades on NASDAQ National Market System (Symbol DISK).
 -0- 11/15/93
 /CONTACT: Cheryl Lee, Esq., chief administrative officer and general counsel, Image Entertainment, 818-407-9100, ext. 256/
 (DISK)


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

NY-LS -- LA022 -- 4170 11/15/93 08:02 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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