Image and Levity Sign DVD Agreement

CHATSWORTH, Calif. -- Image Entertainment, Inc. (Nasdaq:DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America, today announced that it has signed an exclusive North America distribution agreement with top comedy producer Levity Productions, a division of The Levity Entertainment Group, for a minimum of 15 new comedy programs over the next three years. The exclusive rights granted to Image under the agreement include DVD, audio and digital.

Among the titles Image will be distributing are new stand-up comedy specials from top grossing artists Pablo Francisco, Gabriel Iglesias and Daniel Tosh. Production was recently completed on a live comedy event based on "The Bob & Tom Show," arguably the most successful syndicated radio morning show in more than 160 markets nationwide. In addition, on the heels of ten sold out performances, Image recently filmed a new show with well-known stand-up comedian John Pinette in Montreal.

"Levity brings us even deeper into the comedy genre, which further builds our already strong lineup of comedy concerts and specials from today's most popular comedians," said Barry Gordon, senior vice president of worldwide programming from Image Entertainment. "Levity is an innovative marketer and a leader in all aspects of the comedy business. They operate venues that are the largest buyer of comedy talent, thus having the unique ability and insight in identifying the industry's next big comedy stars.

"We will be delivering Image an exciting line-up and wide variety of comedy programs," said Judi Brown-Marmel, partner of Levity Productions. "Their track record among other independents in the home entertainment market is unequalled and we're looking forward to having Image represent our productions at retail."

Levity Productions is the comedy production arm of The Levity Entertainment Group. As the largest bookers of live comedy in the world and partner of the world famous Improv comedy clubs, Levity is unsurpassed in their knowledge of stand-up comedy. The full service production company is currently producing the series for Comedy Central, "Live From Gotham." Levity also has a long standing relationship with HBO's U.S. Comedy Arts Festival -- Aspen and The Comedy Festival - Las Vegas. In addition to serving as a leading talent management firm, Levity is a consultancy agency for Fortune 500 companies including Pepsi and AEG.

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, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2006. 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.