Image in Agreement to Sell for $100 Million

CHATSWORTH, November 21:
Image Entertainment has entered into a definitive merger agreement with Nyx Acquisitions, a wholly-owned subsidiary of Q Black Media, to sell itself in a
transaction valued at approximately $100 million.

The
deal includes the assumption of the company's outstanding debt under its credit
facility, replication advance obligation and convertible note. Image stockholders will receive $2.75 per share in
cash. Stockholders owning a total of approximately 38 percent of Image's
outstanding shares of common stock have agreed to vote their shares in favor of
the transaction.

David Borshell, the
president of Image Entertainment, stated, "Executive management and the
company's Board of Directors never gave up on finding a way to maximize
shareholder value, even during a challenging financial environment. We have
been successfully executing the business plan we put in place about a year ago
and by doing so developed a strong and healthy business, which obviously kept
potential suitors interested.

"This deal allows
Image to expand its overall business and grow as a vertically-integrated
entertainment company. By combining Image's established infrastructure and
highly regarded home video, digital and television distribution capabilities
with Q Black's content creation and digital technology expertise, the parties
create a much larger and exciting organization, one very much focused on
feature films and well prepared to take advantage of evolving distribution
strategies."

Joe Q. Bretz, the CEO of Q
Black Media, commented, "Image is one of those companies that gets
stronger in the face of adversity. The accomplishments of its senior management
team over the past several months are undeniably impressive—they've built
a solidly growing revenue base by leveraging their distribution capabilities
across all formats and platforms. Our international reach and digital expertise
in conjunction with the drive and vision of the current management team makes
Image a force to be reckoned with. Image will continue to acquire high-profile
programming, develop new and exciting original content from concept to
completion and, of course, utilize its vast library."

"I'm both proud and
excited to be part of this company and look forward to the future as we take
Image to new levels," Bretz added.

—By Kristin
Brzoznowski