Image Entertainment, Inc. Announces Preliminary DVD Sales For The Holiday Quarter For Its Direct-To-Consumer Subsidiary Ken Craineís

Image Entertainment, Inc. (NASDAQ: DISK), a leading DVD licensee and distributor, has announced preliminary unaudited net revenues for its wholly-owned subsidiary, Ken Crane's, for the quarter ended December 31, 1999. Ken Crane's total DVD net revenues for the quarter were up over 75 percent to approximately $3.4 million from approximately $1.9 million for the December 1998 quarter, reflecting strong holiday sales of DVD software. Ken Crane's total net revenues for the December 1999 quarter were down approximately 7 percent to approximately $4.2 million (of which DVD net revenues represented approximately 81 percent) from approximately $4.5 million for the December 1998 quarter (of which DVD net revenues represented approximately 43 percent). The decline in quarterly total net revenue was due to a 70 percent decline in Ken Crane's sales of LaserDisc programming as DVD sales continue to rise.Ken Crane's DVD customer transactions also grew by over 65 percent for the December 1999 quarter as compared to the December 1998 quarter.Martin W. Greenwald, Image's President and CEO stated, ""We are extremely pleased with the quarterly comparisons of our direct-to-consumer division. DVD is one of the fastest growing consumer electronic products ever and our direct-to-consumer business is certainly participating in this rapid expansion.""What makes this even more significant is that I anticipate the potential for accelerated growth when Kencranes.com transitions to DVDPlanet.com and Image takes over the warehousing and fulfillment from its Las Vegas facility.""A stronger and more effective Ken Crane's (DVDPlanet.com) e-commerce site has been long in development. I am confident that the time has been valuably spent and that given the relationship between DVDPlanet.com as retailer, and Image as product supplier, DVDPlanet.com could become a premier supplier of DVD programming on the Internet.""The Ken Crane's direct-to-consumer division of Ken Crane's Magnavox City, Inc. was acquired by Image Entertainment, Inc. in January 1999. Net revenue and customer transaction figures for the period prior to January 1999 were provided by Ken Crane's Magnavox City, Inc. and are unaudited.The Company intends to report final fiscal 2000 third quarter consolidated financial results as well as the final fiscal 2000 third quarter financial results of Ken Crane's by no later than February 14, 2000.

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