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IMAGE ENTERTAINMENT INC. REPORTS FISCAL 1993 RESULTS; REAFFIRMS EXPECTATIONS FOR STRONG FIRST QUARTER

 CHATSWORTH, Calif., June 25 /PRNewswire/ -- Image Entertainment Inc. (NASDAQ-NMS: DISK), one of the largest licensees and distributors of programming on laserdisc in the United States, today reported results for the fiscal year ended March 31, 1993.
 For fiscal 1993, net sales increased to $60.4 million from $59.1 million for the prior year. The company reported an operating loss of $14.1 million for fiscal 1993, compared to operating income of $2.6 million for fiscal 1992, largely as a result of a one-time, non- cash charge associated with the restructuring plan adopted by the company on March 18, 1993. Fiscal 1993 net loss was $17.0 million, or $1.44 per share, compared with net income of $516,208, or $.04 per share, for fiscal 1992.
 For the fourth quarter of fiscal 1993, net sales increased slightly to $17.1 million from $17.0 million for the corresponding quarter of fiscal 1992. Net loss for the quarter was $13.8 million, or $1.14 per share, compared with net income of $336,663, or $.02 per share, for the fourth quarter of fiscal 1992, and includes a one-time, non-cash charge of $10.4 million, or $.86 per share, associated with the restructuring plan and an accrual for the estimated unrecouped minimum royalty license agreement guarantees of $3.4 million, or $.28 per share.
 Martin W. Greenwald, Image's chairman and chief executive officer, commented, "The restructuring should result in improved gross margins and reductions in selling, general and administrative expenses and amortization of production costs in the coming year. I am optimistic that the changes implemented in accordance with the plan will enable us to put this difficult time behind us. I reaffirm our expectation of a profitable first quarter with revenues of approximately $16 million, up more than 60 percent from the $9.8 million reported for the first quarter of fiscal 1993."
 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, Playboy Home Video and Turner Home Video. The company's common stock trades on the NASDAQ National Market System (symbol DISK).
 IMAGE ENTERTAINMENT INC.
 Statements of Operations
 Three Months Ended Fiscal Year Ended
 March 31, March 31,
 1993 1992 1993 1992
 Net sales $17,097,561 $17,034,392 $60,410,495 $59,106,042
 Operating costs
 and expenses:
 Cost of
 laserdisc sales 17,068,300 13,222,067 52,943,232 46,124,240
 Selling expenses 1,064,804 1,113,724 4,189,078 3,699,792
 General and
 administrative
 expenses 1,006,858 990,801 4,015,111 3,741,797
 Amortization of
 production costs 678,881 650,811 3,024,581 2,896,433
 Restructuring
 charge 10,366,000 --- 10,366,000 ---
 Total 30,184,843 15,977,403 74,538,002 56,462,262
 Operating income
 (loss) (13,087,282) 1,056,989 (14,127,507) 2,643,780
 Other expenses:
 Interest expense 635,967 641,418 2,531,729 2,010,152
 Amortization of
 deferred
 financing costs 78,908 78,908 315,631 116,620
 Income (loss) before
 income taxes (13,802,157) 336,663 (16,974,867) 517,008
 Income taxes --- --- 800 800
 Net income (loss)($13,802,157) $336,663 ($16,975,667) $516,208
 Net income (loss)
 per share ($1.14) $.02 ($1.44) $.04
 Weighted average
 shares
 outstanding 12,113,877 15,601,537 11,760,401 13,365,675
 -0- 6/25/93
 /CONTACT: Cheryl Lee, Esq., chief administrative officer and general counsel of Image Entertainment, 818-407-9100, ext. 256/
 (DISK)


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

MF-JL -- LA026 -- 5959 06/25/93 20:57 EDT
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Date:Jun 25, 1993
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