Imperia Entertainment Releases Shareholder Letter.

BEVERLY HILLS, Calif. -- Imperia Entertainment, Inc. (Pink Sheets:IPRE) and Muller Media, Inc. (Pink Sheets:MUME) announced today that they have issued the following letter to shareholders.

Dear Shareholders,

I felt it time to address you again regarding the latest developments
with our company. I have heard much speculation and rumors, most of
which are inaccurate. As I have often stated, we are always working
behind the scenes, even if our efforts are not apparent until we
release news. Of course people often fear the worst when they do not
hear from you, which is why I believed this would be a good time to
address our shareholders.

One of the concerns I have heard has been about "Say It In Russian"
(SIIR) and shareholders questioning why there has not been an update
on this project. I can tell you that the producers, the director and
the editor have been in the editing room around the clock adding the
finishing touches on this project. A lot of people doubted that this
project was of quality until they saw our trailer. We don't want to
put something out there unless it is of great quality. This film has
exceptional photography that requires a full musical score. Since it
was shot on Super 35mm, extra care and handling is required. It is the
type of film you would expect a studio to produce, so it is something
we have to work very carefully on. We have spent the time on this
project that it has required, and I assure you the finished product
will be worth the extra effort. We are very close to being done and
will release news when it is done.

Here are some actual questions that I have received. I will answer
them for you all publicly:

Q: Why has SIIR not been entered in film festivals?

A: We cannot enter the movie until it's complete. It will be completed
soon. We will submit it to festivals in the near future when it is
complete. Movies are art, not science, and it is always better to
focus on having the best-finished product possible than to try and
rush it, sacrificing quality in the process. You only have one chance
to make a first impression in this business.

Q: What happened to the Muller Media (MUME) dividends? I thought you
said they were in the mail.

A: No, I never said they were in the mail. We must conduct an audit on
MUME and file a registration statement with the SEC. This will take
several months. You will get a prospectus in the mail. There is
paperwork that must be filed out by you and then sent to the transfer
agent. You will then be issued your shares.

Q: I have owned another company where we got our share dividends
instantly. Why is this not the case with Imperia?

A: Our dividend will be non-restricted free trading shares. At the
time, this was initiated in the state of California, not Nevada or
Delaware. Every state has its own restrictions and guidelines, which
we must follow.

Q: I heard a rumor that the reverse split is back on the table. What's
the deal?

A: The reverse split was never off the table. We simply stated that we
would not be moving forward with it at that time, but reserved the
right to do so in the future. We did this because of the delays we
faced in California. We have since had a shareholder meeting for which
all shareholders of record were notified by mail. At that meeting, we
voted that we would change our corporate domicile from California to
the more corporate friendly state of Nevada. For the sake of
simplicity, we put the both the change of corporate domicile and the
split to a vote. Notice was given by our transfer agent to all
shareholders of record. The merger documents have been filed in
Nevada, but we are still waiting for them to be filed in California to
terminate our corporate status there. Once that is done, we will
effectuate the reverse split.

Q: Why would you even consider a reverse split?

A: Our stock has remained at the same levels without any movement for
a long time. We need a higher price per share in order to conduct two
important business operations: 1) We plan in the next year to get on a
higher stock quotation medium and need to satisfy certain requirements
to do so; and 2) We need a higher share price in order to close
financing deals for our upcoming projects.

Q: Why would you need a higher share price to attract investors?

A: Our private placements are based on a certain number of convertible
restricted shares in return for a certain amount of cash investment.
If our price per share is higher, those shares become worth more and
thus become more attractive

Q: Why not just buy back shares?

A: Funding for our film projects must be prioritized, and we have
projects that need to move forward now. We cannot wait until SIIR is
completed, taken to the film festivals and sold. We have operations
and projects that I believe will be highly profitable that we need to
move forward with now. If circumstances permit in the future, we may
consider a share buy back.

Q: Why do you sell shares in exchange for finances, why don't you take
out a loan or some other way to raise money?

A: We are a public company and raise funds as all public companies do,
through sale of shares. If we didn't need public investment to raise
funds, we would be a private company.

Q: Why do you never finish the projects you start?

A: We have finished every project we have worked on. We finished a
full season of episodes of "Autograph," which played for a long time
on the Colours television network. The program has been licensed to
broadcast over the OlypUSat satellite system, and reaches virtually
every market in the U.S. It was also included with our mobile content
phone deal and will be available on cell phones in multiple countries
around the world in the very near future.

Not only was my first movie "All That I Need" finished, it was
released in theatres, which is very rare for an independent movie of
that budget. We have a sales agent who is now in the process of
approaching several distributors for a wide DVD release of this movie,
and the film has already seen play in different foreign television
markets. Soon SIIR will be finished as well. Many companies on the
pink sheets never finish or even start any projects. We always
complete our projects and that is our track record. All of our
projects have a long life of revenue producing potential.

Q: Why is so much attention being given to your "pet project" "Never
Submit" when it should be going to SIIR? You just put out two "fluff"
PRs about "Never Submit" and nothing about SIIR.

A: First of all, we don't put out PRs to explain that something is
still being worked on. We will put out a PR when SIIR is done. We
haven't started filming "Never Submit" yet, so very little money is
being put into that project at this time. By comparison, a lot more
money is being spent on completing the postproduction of SIIR. We
always inform our investors when there is news to tell. So no matter
what project the news is for, we will release it.

I do not believe last weeks PRs were fluff. In fact, they were major
updates of significance. The clothing deal is a perfect example.
TapouT clothing is the industry leader in mixed martial arts (MMA)
gear and apparel. It pulls in millions of dollars per year in revenue.
The number one best selling sports-related DVDs in the country are MMA
DVDs. The UFCs latest Pay-Per-Views have exceeded $30 million. Pride,
an event based in Japan that is coming to America in October, has sold
out 70,000 plus seated arenas with their live events. Those live gate
numbers rival the Super Bowl. We have been getting front-page press
about these deals on most of the biggest MMA websites. Several
corporate sponsors have contacted me about getting involved in this
project, as have several of the top fighters. Just because many
shareholders may not be knowledgeable about this emerging sport does
not mean that this is not a highly profitable venture. And I am
convinced that it will be. Microsoft, Coke and Burger King are just
some of the sponsors who are now getting involved in MMA. I believe
Imperia Entertainment is on the cutting edge with this project and the
response has been phenomenal.

TapouT Magazine is the top exclusive MMA magazine that is aimed at our
target demographic for this project. I believe a partnership with them
on this project is not "fluff." I have a very specific vision for this
project, and I am steadfast in my belief for it, even if others cannot
see or understand that vision. Sometimes being a leader means being
bold and sticking with your instincts even in the face of opposition.
In my opinion, some of the best companies are those run by bold
visionaries who follow their instincts. I believe it is always best to
do something you are passionate about. I am very passionate in my
belief for this project, and you will see that passion continue over
the coming months. I believe that passion is an asset, not a
liability. I also believe that having passion for something, breeds
passion from those around you.

"Failure is the path of least persistence."

I want to thank all Imperia shareholders for your continued support of
this company.

All the best,

James Hergott
President, Imperia Entertainment

This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Imperia Entertainment, Inc., and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.