Image Entertainment and CDNOW Join Forces for VH1 Divas Live 1999 DVD Sweepstakes; Cutting-Edge Promotion to Feature Exclusive Customized Streaming Video Clips

CHATSWORTH, Calif.--(BUSINESS WIRE)--Feb. 17, 2000--

New York City Trip to VH1 Divas Live 2000 Concert to be Awarded as Grand Prize


Image Entertainment, Inc. (Nasdaq:DISK), a leading licensee and distributor of DVD programming in North America, today announced that it has joined forces with CDNOW (Nasdaq:CDNW), a leading online music destination, to promote the Image-exclusive DVD release of VH1 Divas Live 1999, featuring Whitney Houston, Cher, Tina Turner and Brandy.

From now through March 10, visitors to CDNOW will be able to stream a customized video featuring VH1 personality and supermodel, Roshumba. This clip is designed to encourage preorders of VH1 Divas Live 1999 on DVD and to entice visitors to enter a sweepstakes to win an all-expense paid trip for two to New York City for the April taping of the VH1 Divas Live 2000 concert.

Streaming clips of Whitney Houston and honorary guest-diva, Sir Elton John, taken from the DVD's ancillary materials, will also be offered exclusively on CDNOW.

CDNOW's Video Shop (cdnow.com/video) includes an immense selection of movies in VHS or DVD. Visitors can search the Video Shop by Advance Orders, New Releases, Best Sellers and more. Movie reviews, actor/actress information, film ratings, run time and more are available from the All Movie Guide.

A second Roshumba spot has been produced for use on CDNOW and VH1 affiliate web sites, whose linked banner advertising will further support the promotion. In addition, VH1 will promote the DVD and sweepstakes on their television programming and web site.

The VH1 Divas Live 1999 DVD features Dolby Digital 5.1 surround, DTS and two-channel stereo on the same disc. The program, completely remastered for DVD, also features discographies, filmographies and soundbites from Whitney Houston, Cher, Tina Turner, Brandy and Elton John. Image and VH1 will donate a portion of the proceeds from sales of the DVD to "VH1 Save the Music," a charity which supports music education throughout the United States. The DVD will be released on April 4, 2000.

About Image Entertainment

Image Entertainment, Inc. is a leading aggregator of content for DVD. The Company also has exclusive videocassette, broadcast, streaming video and downloading rights for certain properties. With nearly 1,000 Image-exclusive DVD titles in release, the Company maintains its distribution facility in Las Vegas, Nevada, and is one of the largest distributors of DVD programming in North America. Additionally, Image has distribution agreements in The United Kingdom, Austria, German-speaking Switzerland, Belgium, Luxembourg and The Netherlands for select programming in the DVD and videotape formats.

About CDNOW

CDNOW, Inc., is the online music destination that offers the most comprehensive, personalized connection to the world of music. CDNOW's offerings consist of more than 500,000 music and entertainment-related items, including CDs, DVDs, videotapes, cassettes, vinyl albums and Custom CDs, as well as music samples and intelligent album recommendations.

CDNOW Media, the Company's newly formed interactive division, develops CDNOW's interactive content, including allstar(TM) News, artist interviews and reviews, music downloads, Cosmic Music Network -- an innovative community for unsigned bands -- and the Company's cybercasting and entertainment.

On July 12, 1999, CDNOW, Inc. (Nasdaq:CDNW) entered into a definitive agreement with Sony Corporation of America (NYSE:SNE) and Time Warner, Inc. (NYSE:TWX) to merge with Columbia House, the leading club-based direct marketer of music and videos. The new public company resulting from the merger will be owned 37 percent each by Sony and Time Warner.

CDNOW's existing stockholders will own the remaining 26 percent. The Company anticipates that the merger will close in the second quarter of 2000, following receipt of regulatory approval from the FTC, clearance from the SEC, and shareholder approval.

--30--jb/sf* sdf/sf

CONTACT:

Image Contact

Garrett M. Lee, 818/407-9100 Ext. 265

glee@image-entertainment.com

or

CDNOW Jenni Glenn, 215/619-9546

jglenn@cdnow.com