SOURCE: IMAGE Worldwide, Inc.

February 28, 2008 09:00 ET

IMAGE Worldwide Announces Launch of Lucrative New Division

Projected Revenues Expected to Reach $2.6 Million Annually

CHICAGO, IL--(Marketwire - February 28, 2008) - Image Worldwide (PINKSHEETS: IMGW) is proud to announce today the creation of a new division within the company, City Book Savings.

IMAGE Worldwide is parlaying its successful integrated media and entertainment marketing experience by generating this exciting new division in the Chicago market. Revenue projections are as follows:

2008 = $ 450,000

2009 = $ 1,250,000

2010 = $ 2,600,000

City Book Savings is designed to appeal to the most discriminating clientele within the city's most affluent areas. The hard cover book is set in a full-color, upscale format utilizing one of the most effective & proven delivery systems available: direct mail. City Book Savings will achieve 100% saturation of local neighborhood markets, businesses, apartments, single-family homes, as well as post office boxes.

The custom designed geographic areas are set for a distribution of approximately 10,000 addresses per book. This will allow both the larger business and the small neighborhood establishment to participate in an affordably priced yet focused target market.

One of the unique features of City Book Savings is the built-in tracking system designed to accumulate total revenue generated, originating neighborhood as well as City Book Savings return on investment. Due to weight limitations set by the post office, each neighborhood book will feature just 75 businesses. Management has calculated that advertising space will be full by the 2nd publication of each book, creating demand levels rarely achieved by print media or, for that matter, any media. This calculation is based upon ROI and the fact that there is an average of 2000 businesses per zip code in the Chicago market.

The second sales stream of City Book Savings will be obtained by driving traffic from the massive distribution to a state-of-the-art web portal, www.CityBookSavings.com. IMAGE Worldwide already generates over 6 million hits each month on the websites it manages. This new system will consist of a search engine that allows local as well as national businesses to advertise products and services to a large and captive audience. Advertising options available include mini websites, video commercials, audio commercials and printable coupons. The ability to purchase and maintain web marketing by the customer or business and promote "on the fly" is something that should also be of great benefit.

In reference to the launch of this new division, CEO Paul Sorkin stated, "When you add the projected revenues of City Book Savings to our strong 2007 financial results we clearly have a tremendous upside. I believe our current and future shareholders could be getting very excited in the near term as we continue to renew and expand advertising contracts plus book celebrity events similar in fashion to those that we've done with Beyonce, Jamie Foxx and 'Dancing With The Stars.'"

About IMAGE Worldwide, Inc.

IMAGE Worldwide, Inc. is the parent company of several rapidly growing entertainment subsidiaries. IMAGE has created a community that focuses on networking within the entertainment industry. In addition to its established promotions companies and interactive websites, IMAGE operates a fashion/entertainment magazine, direct mailing book, radio station and nightclub/concert venue. IMAGE currently attracts more than 10,000 visitors to its events per month. IMAGE's websites attract approximately 100,000 visitors generating over 6,000,000 hits each month. www.IMAGEworldwide.com, www.IMAGEchicago.com, www.RealityIMAGE.com, www.ShequeChicago.com, www.lacalienteradio.com, www.cluboasisky.com, www.CityBookSavings.com.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks described in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements that may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

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