Image Entertainment, Inc. (Nasdaq:DISK), a leading licensee and distributor of DVD programming in North America, today announced the signing of an agreement that will see the Company’s exclusive programs distributed in Canada by Vid Canada, a division of Video One Canada Ltd, a leading distributor of home video programming.

Image’s DVD and videocassette releases will be available in Canada, through Vid Canada, for three years. Vid Canada will represent Image-exclusive product to wholesalers, audio and video retailers, mass merchants, warehouse clubs and Internet retailers throughout Canada. David Borshell, Image’s Senior Vice President of Sales, Marketing and Operations, stated, “The signing of this agreement with Vid Canada formalizes a relationship that has been in place for the past couple of years. The deal further strengthens the Company’s North American distribution efforts. Vid Canada has proven to be a great partner for Image and, together, we look forward to maximizing sales of Image’s exclusive programming in Canada.”

John Ford, Vice President and General Manager of Vid Canada, stated, “We are extremely pleased in this announcement of our long term association with Image. Image has been at the forefront of DVD programming and we at Vid Canada will continue that forefront for the Canadian market. This agreement will continue Vid Canada’s commitment to market, promote, and foster Image products throughout
Canada via Vid Canada’s strong customer base.”

Bob McCloskey, President and CEO of Video One Canada, commenting on the agreement, stated, “At Vid Canada, we are delighted with the new agreement which will ensure the continued growth and expansion of our business in Canada. Image Entertainment has an exciting lineup of new product planned for release over the next three years in Canada and we look forward with great enthusiasm to expanding the revenues and presence of Image product in the marketplace.”