216324--6/30/2008--IMAGE_ENTERTAINMENT

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We Have a High Concentration of Sales From Relatively Few Titles. We May Not Be Successful In Acquiring Cast Driven Finished Feature Film Content or Selling Feature Film Content. Our Current DVD and CD Genre Revenue Concentrations May Become Unpopular With Our Retail Customers and End-Consumers, Which May Adversely Affect Our Business. Inventory Obsolescence May Adversely Affect Our Business. We May Not be Able to Recoup Advances That We Pay to Secure Exclusive Distribution Rights. Problems Distributing Our Programming Internationally May Adversely Affect Our Business. We Have Direct and Indirect Foreign Currency Exchange Risk. Inability to Maintain Relationships with Our Program Suppliers and Vendors May Adversely Affect Our Business. The Full Exploitation of Our Rights Requires Us to Conduct Business in Areas Where Our Expertise Is Limited. Loss of Key Personnel May Adversely Affect Our Business. To Be Successful, We Need to Attract and Retain Qualified Personnel. Occurrence of Events for Which We Are Not Insured May Adversely Affect Our Business. The Standard DVD Format Has Matured. Decreasing Retail Prices for DVDs May Negatively Impact Our Revenues. Failure to Effectively Expand Vendor Managed Inventory (VMI) May Adversely Affect Our Business Our Success Depends on the Commercial Success of Our Programming. Decreasing Retail Shelf Space May Limit Sales of Our Programming Our Prior Film Production Efforts May Not be Successful Financially. We May Not Be Able to Keep Pace with Technological Advances. An Increase In Product Returns May Adversely Affect Our Business. Illegal Piracy May Reduce Our Revenues. Others Failure to Promote Our Programming May Adversely Affect Our Business. If DVD Cannot Compete Successfully with Other Formats of Home Entertainment, Our Revenues May Be Negatively Impacted. If We Cannot Continue to Secure DVD Distribution Rights, Our Business May Be Materially Adversely Affected. We May Not Possess Satisfactory Rights in Our Properties. Changes in the Unites States, Global or Regional Economic Conditions Could Adversely Affect the Profitability of Our Business. Legislative Actions, Higher Director and Officer Insurance Costs and Potential New Accounting Pronouncements are Likely to Cause Our General and Administrative Expenses to Increase and Impact Our Future Financial Condition and Results of Operations. We Depend on Third Party Shipping and Fulfillment Companies for the Delivery of Our Products. Protecting and Defending against Intellectual Property Claims May Have a Material Adverse Effect on Our Business. Our Stock Price May Be Subject to Substantial Volatility, and You May Lose All or a Substantial Part of Your Investment. Any Future Sales of Equity May Significantly Impact the Market Price of Our Common Stock.

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216324--6/30/2008--IMAGE_ENTERTAINMENT_INC