Deadline Extended for Image Merger

Image Entertainment Inc. has extended into April the closing on a merger deal with Nyx Acquisitions Inc. that has been plagued by financial difficulties. An amended agreement between Chatsworth-based Image and Nyx will have Nyx upping the amount it pays in a business disruption fee by $200,000 and releases $1 million of the fee to Image now being held in an account. The amended agreement gives Nyx the option to extend the closing date to April 20. Nyx, an affiliate of San Francisco-based Q-Black LLC, has agreed to acquire all outstanding shares of Image stock at $2.75 per share. Image shareholders approved the merger in February. Three times Image has alleged Nyx with breaching the merger agreement over failure to meet deadlines on payment of the business disruption fee into an account. Image believes that Nyx has a sincere desire to complete the transaction, which we firmly believe is in the best interest of our shareholders, said Board Chairman Martin W. Greenwald. Mark R. Madler