Image Board Members Reelected

LOS ANGELES, October 18: Image Entertainment has won its
proxy battle with Lionsgate, with all seven of the home entertainment outfit’s
board members reelected, defeating the independent studio’s nominees.

Lionsgate holds a 19-percent stake in Image and has been
trying to take full control of the company. Last month, Lionsgate sent a letter
to Image shareholders urging that the outfit’s board be replaced, noting that
the directors did not have stockholders’ best interests at heart. Despite
winning the backing of the proxy advisory services Institutional Shareholder
Services (ISS) and Glass, Lewis & Co., all seven Image board members were
reelected with about 56 percent of the vote.

Image’s CEO and chairman Martin Greenwald told Reuters that
he has "no animosity" toward Lionsgate. "I would love to see a
combination of our companies … the only thing I'm asking them to do is to sit
down and revisit their pricing model." Lionsgate has offered to buy Image
for $4 per share.