Image Entertainment and Superstar R. Kelly Sign Worldwide Exclusive Distribution Agreement for Artist's First Live Concert Production; DVD and Digital Video Rights Included in the Agreement.

CHATSWORTH, Calif. -- Image Entertainment, Inc. (Nasdaq:DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America, today announced through an arrangement with Zomba Label Group it has signed a worldwide exclusive distribution agreement with Jive Records R&B superstar R. Kelly for the artist's first live concert DVD. The agreement also grants Image exclusive digital video distribution rights to the performance.

Under the agreement, Image will co-produce and distribute R. Kelly's first live concert DVD, which was filmed in high definition in March '06 at the Paramount Theatre in Oakland, Calif. In addition to the concert footage, the DVD will include behind-the-scenes material and a rare up-close-and-personal look at the R&B superstar. The program is expected to be released on DVD and via digital distribution in the first quarter of calendar 2007.

"R. Kelly is one of the hottest and bestselling R&B performers of all time," said Barry Gordon, senior vice president of worldwide programming of Image Entertainment. "This will be the first R. Kelly full-length concert event to be released on DVD and we are anticipating a huge response from his millions of fans around the world."

The DVD is being produced by Ann Carli and directed by Jim Swaffield, the same team that did R. Kelly's "Trapped in the Closet" DVD as well as Britney Spears' "Greatest Hits" DVD, which sold more than one million units, and Ciara's "Goodies the Videos and More" DVD.

"I appreciate my fans for supporting me and giving me the chance to live my dreams and share my songs with them throughout my whole career," said R. Kelly. "This is my first concert DVD and I'm so proud to be able to bring the world a new classic!"

R. Kelly's first release was over 15 years ago; he is a true musical icon and has sold nearly 40 million albums worldwide. R. Kelly is a multi-winning Grammy, Billboard, Soul Train and American Music Awards winner who has co-directed all of his music videos since the classic "Down Low (Nobody Has To Know)."

The Zomba Label Group consists of record labels Jive, LaFace, So So Def, Verity, Volcano, Violator, Fo Yo Soul and Gospocentric. These labels represent a varied group of artists, including R. Kelly, Usher, Justin Timberlake, Kirk Franklin, Nick Lachey, Ciara, Outkast, 311, T-Pain, Byron Cage, Buddy Guy, Tool, Living Things, Britney Spears, Youngbloodz, Anthony Hamilton, P!nk, Donnie McClurkin, Chris Brown and Backstreet Boys.

About Image Entertainment:

Image Entertainment, Inc. is a leading independent licensee, producer and distributor of home entertainment programming in North America, with over 3,000 exclusive DVD titles and approximately 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., has digital download rights to more than 1,500 video programs and over 150 audio programs containing more than 2,500 tracks. The Company is headquartered in Chatsworth, California, and has a domestic distribution facility in Las Vegas, Nevada. The Company's subsidiary Image Entertainment (UK) maintains a content acquisition office in London, England. 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, our goals, plans and projections regarding our financial position, results of operations, market position, product development and business strategy. 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 action 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, and changes in the retail DVD and entertainment industries. 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. 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.