SOURCE: IMAGE Worldwide, Inc.

IMAGE Worldwide, Inc.

June 17, 2009 08:31 ET

IMAGE Worldwide, Inc. (IMGW) Increases First Quarter Revenues in 2009 by Over 135%, Increases Gross Profits by Over 142%, and Reports a Net Profit

Post Acquisition Company Changes Focus and Structure and Substantially Improves Revenues and Profits

CHICAGO, IL--(Marketwire - June 17, 2009) - IMAGE Worldwide, Inc. (PINKSHEETS: IMGW) is pleased to announce the unaudited results of Operations for the Three Months Ending March 31, 2009 Compared to the Three Months Ended March 31, 2008.

Revenues for the three months ended March 31, 2009 ("First Quarter 2009") were $1,179,559.97 compared with $501,460 for the three months ended March 31, 2008 ("First Quarter 2008"). That is an increase of 135% or $678,099.97 for the quarter.

Gross Profits for the three months ended March 31, 2009 ("First Quarter 2009") were $406,780.26 compared with $167,968 for the three months ended March 31, 2008 ("First Quarter 2008"). That is an increase of 142% or $ 238,812.26 for the quarter.

Net Income for the three months ended March 31, 2009 ("First Quarter 2009") was $98,563.63 compared with a loss of ($133,257) for the three months ended March 31, 2008 ("First Quarter 2008"). That is an increase of $277,418.16 in Net Profit for the quarter.

The recent acquisition and subsequent transactions have created numerous positive changes for IMAGE Worldwide, including the numbers above; however, many shareholders remain confused about what actually took place. This press release is an attempt to clear up any confusion.

On February 1, 2009, IMGW completed the acquisition of St. Louis Packaging, Inc. and STL Graphics Group. At the same time the company sold Club Oasis and elected Steven St. Louis as the new CEO. Paul Sorkin resigned as CEO but has remained involved as a consultant. During the last few months the company has been restructuring its divisions, operating model, and future business plans along with a new mission, vision, and budget for the company. Certain products, services, and expenses have been eliminated and others adjusted to become more competitive and to create the best synergy with the remaining divisions. The new parent company name is STL Marketing Group, Inc.

The Company has experienced a few delays with their recent audit but is still working with the audit firm of Veraja-Snelling and Company to confirm the 2008 numbers for the acquired companies and will report the final numbers when it is complete. Auditor Jeannie Veraja said, "We have completed our audit fieldwork and have prepared an initial draft of the financial statements for St Louis Packaging, Inc., however there are still a few issues outstanding that our professional standards require we resolve prior to releasing our report. Also, as we were not engaged as auditors until after December 31, 2008, we were not present to observe a physical inventory count at December 31, 2008 and 2007, which is a generally accepted auditing standard, so we were not able to perform to procedures to satisfy ourselves on both beginning and ending inventory quantities. This is not unusual for a first year audit of a small closely-held company which historically has maintained their bookkeeping system on a tax basis method, the standards of which are different from those required by U.S. generally accepted accounting principles."

The Company has also filed an application with NASDAQ Corporation Compliance/FINRA to accomplish a name change and reverse stock split. We believe this reverse stock split and name change to STL Marketing Group, Inc. (www.STLmarketingGroup.com) will position the company the best for future growth and potential long-term increased shareholder value.

The new mission for STL Marketing Group is a commitment to brand movement through Four distinct vehicles: creative and design services, packaging and supply solutions, printing and mailing products, and event production and promotion. These core business units allow for supply chain synergy and a one-stop shop approach for clients to achieve their strategic communications objectives. Vertical integration and cross promotion between company sectors allows STL Marketing Group the ability to share key resources, maximize efficiencies, and utilize economies of scale. These components improve buying power for the corporation and increase value for clients and shareholders.

The new STL Marketing Group will utilize a blend of products, services, and relationships to create an extraordinary customer experience and foster unbounded company growth.

The new and improved company will still produce the lifestyle and fashion magazine, IMAGE Chicago, but will no longer be involved with Club Oasis or All Pro Networks.

New CEO Steve St. Louis said, "We apologize for any delays with the audit or the lack of substantial updates until now. We felt it was very important that our management team and consultants focused a substantial amount of time and effort restructuring our new operating model and future business plan. I feel we have put together a very solid team, with quality products and services to help increase our revenues and profits as we try to increase shareholder value in the future. We remain optimistic and believe our business is well positioned for growth as we have increased our revenues, become profitable, narrowed our focus, and have a tremendous amount of positive opportunities ahead of us. We all have the same long-term goals and we appreciate the support and understanding we have received during this transition."

About IMAGE Worldwide, Inc. / STL Marketing Group

IMAGE Worldwide / STL Marketing Group is committed to brand movement through Four distinct vehicles: creative and design services, packaging and supply solutions, printing and mailing products, and event production and promotion. These core business units allow for supply chain synergy and a one-stop shop approach for clients to achieve their strategic communications objectives. Vertical integration and cross promotion between company sectors allows STL Marketing Group the ability to share key resources, maximize efficiencies, and utilize economies of scale. These components improve buying power for the corporation and increase value for clients and shareholders. STL Marketing Group will utilize a blend of products, services, and relationships to create an extraordinary customer experience and foster unbounded company growth. www.STLmarketingGroup.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 plan, 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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