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IMAGE ENTERTAINMENT AND BUENA VISTA HOME VIDEO INK FOUR-YEAR EXCLUSIVE LICENSING AGREEMENT

 IMAGE ENTERTAINMENT AND BUENA VISTA HOME VIDEO INK
 FOUR-YEAR EXCLUSIVE LICENSING AGREEMENT


The Walt Disney Co. Obtains Warrant for 10 Percent Interest in Image
 CHATSWORTH, Calif., Dec. 20 /PRNewswire/ -- Image Entertainment (NASDAQ: DISK) announced today that it has reached a four-year, full license agreement with Buena Vista Home Video for the replication, marketing and distribution of Walt Disney, Touchstone, Hollywood Pictures and Buena Vista home video programming on laserdisc in the United States and Canada. The agreement is exclusive with the exception of Buena Vista's direct accounts.
 In connection with the agreement, The Walt Disney Co. (NYSE: DIS), parent company of Buena Vista Home Video, obtained a warrant enabling it to purchase up to 10 percent of Image, on a fully diluted basis. The warrant is immediately 25 percent vested with the balance vesting equally over the next three years.
 Martin W. Greenwald, chairman and chief executive officer of Image Entertainment, stated, "This is a landmark agreement for Image Entertainment.
 "It represents a strong show of support for the laserdisc industry and especially in our ability to provide Buena Vista with a top sales and distribution network."
 "Image scored a major triumph with the record-breaking sales of 'Fantasia.' This effort reflects their skills at leading the laser business and is also a strong indication of our mutual role in the format's future," said Bill Mechanic, president of International Theatrical Distribution and Worldwide Video, The Walt Disney Co. "We look forward to continued, mutual success through this new agreement."
 Industry-wide, retail laserdisc sales are expected to top $300 million in 1991, a 70 percent increase from $175 million in 1990. Consumer penetration of laserdisc players continues to expand rapidly, fueling growth in software sales. Industry experts forecast that there will be more than 2.3 million households with laserdisc players by 1995, up from fewer than 500,000 in 1990.
 Buena Vista Home Video, a subsidiary of The Walt Disney Co., is the worldwide distributor of Walt Disney, Touchstone, Hollywood Pictures and Buena Vista videocassettes.
 Image Entertainment, an industry pioneer, is today one of the largest laserdisc distributors in the United States with an estimated 35-40 percent market share. The company has the most extensive library of titles available with more than 3,500 programs. In addition to Buena Vista, Image has exclusive distribution agreements with over 50 major program suppliers including Fox, Orion, Hanna- Barbera, Turner and Sony Music Video. The company believes that it has the most extensive distribution network in the industry, encompassing more than 1,800 retail locations in the United States and Canada.
 -0- 12/20/91
 /CONTACT: David DelGrosso (media), 818-407-9100, ext. 275 or Cheryl Lee (investors), 818-407-9100, ext. 256, both of Image Entertainment; or William F. Coffin of Financial Relations Board, 818-783-2400, for Image Entertainment/
 (DISK DIS) CO: Image Entertainment; The Walt Disney Co. ST: California IN: ENT SU: LIC


AL-CH -- LA008 -- 4382 12/20/91 12:37 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Dec 20, 1991
Words:485
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