DVDINSIDER: Image Entertainment and BMG Entertainment Mexico Announce Exclusive DVD Distribution Agreement for Mexico and Central America.

DVD NEWS-(C)1999-2004 DVD NEWS. Distributed for AM Newswire Inc via M2 Communications Ltd (www.m2.com).

Image Entertainment, Inc., a leading licensee and distributor of DVD programming in North America, announced the signing of an exclusive two-year international DVD distribution agreement with BMG Entertainment Mexico, S.A., a subsidiary of Bertelsmann Music Information Services, GmbH (BMG), a German corporation, for the exclusive distribution of the Company's DVD programming in Mexico and Central America. The agreement calls for BMG to exclusively distribute Image's licensed and exclusively distributed programming throughout Mexico and Central America. The parties will, in good faith, negotiate an extension to the agreement prior to the expiration of the initial two-year term.

Image's DVD programming is currently distributed in Europe, the Middle East and South Africa through the BMG distribution network under a sublicense agreement. Prior to this most recent agreement, the Company did not have distribution for its products in Mexico or Central America.

Under the terms of the new agreement, BMG Mexico will be responsible for all sales, marketing, and distribution of Image's programming throughout Mexico and Central America. Initially, BMG Mexico has selected approximately 50 Image DVD catalogue titles for release, including music programming from Cher, Roy Orbison, Steely Dan and Santana. Image and BMG Mexico will formulate a DVD catalogue marketing and release campaign introducing programs into the marketplace, commencing immediately. BMG Mexico will promptly begin distribution of Image's new release DVD programming as well.

David Borshell, Image's Chief Operating Officer, commenting on the agreement, stated, "BMG Mexico's expertise and resources within these territories are extensive and their proven sales and marketing efforts will strongly benefit Image's DVD content. It has been a year since our international BMG agreement was signed. Our new partnership with BMG Mexico not only strengthens our relationship with BMG, it serves to further expand the worldwide reach of Image Entertainment's programming."

Maarten Steinkamp, President of BMG, International, stated, "Image plays a vital role in BMG's visual media strategy. The extension of this relationship is a natural progression of our already successful partnership."