IMAGE ENTERTAINMENT PROVIDES MERGER UPDATE; ANNOUNCES RECEIPT OF $2 MILLION DEPOSIT FROM BTP ACQUISITION COMPANY AND EXECUTION OF A MULTI-YEAR FEATURE FILM DISTRIBUTION AGREEMENT WITH CT1 HOLDINGS

Exhibit 99.1

IMAGE ENTERTAINMENT PROVIDES MERGER UPDATE; ANNOUNCES
RECEIPT OF $2 MILLION DEPOSIT FROM BTP ACQUISITION COMPANY
AND EXECUTION OF A MULTI-YEAR FEATURE FILM DISTRIBUTION
AGREEMENT WITH CT1 HOLDINGS

CHATSWORTH, Calif. — December 10, 2007 - Image Entertainment, Inc. (NASDAQ: DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America, announced today that the outside closing date for the acquisition of Image by BTP Acquisition Company, LLC, an affiliate of David Bergstein, has been extended by Image’s Board of Directors to January 14, 2008, although the parties continue to work to close the transaction prior to the end of 2007.

In connection with the extension, Image received from BTP a $2 million deposit that will be held in a trust account and credited against the purchase price at closing. Also in connection with the extension, Image has entered into a multi-year feature film distribution agreement with CT1 Holdings, LLC, an affiliate of David Bergstein and the parent company of THINKFilm and Capitol Films. The distribution agreement covers various new film productions and existing film libraries controlled by CT1.

Martin W. Greenwald, Chief Executive Officer of Image stated: “All parties continue to work diligently to close this transaction. We take comfort in BTP’s $2 million deposit and the execution of a multi-year distribution agreement with CT1 Holdings. Together they represent a significant commitment by BTP and CT1 and a very important step forward. The distribution agreement in particular represents a large source of potential revenue for Image.”

Mr. Greenwald concluded, “While it is taking longer to close this transaction than we had anticipated, we firmly believe it is in the best interests of our stockholders to consummate this transaction.”

About Image Entertainment:
Image Entertainment, Inc. is a leading independent licensee, producer and distributor of home entertainment programming in North America, with approximately 3,000 exclusive DVD titles and approximately 250 exclusive CD titles in domestic release and approximately 450 programs internationally via sublicense agreements. For many of its titles, the Company has exclusive aud