Image Metrics, Inc. (OTCBB: IMGX), a provider of digital facial animation technology and services for the entertainment industry, today announced it intends to voluntarily deregister its common stock and suspend its reporting obligations under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Immediately upon making the required Form 15 filing with the Securities and Exchange Commission (the "SEC"), the Company's obligations to file reports and forms with the SEC, including Forms 10-K, 10-Q and 8-K, will cease.

The Company is eligible to deregister its common stock because it has substantially fewer than 300 holders of record of its common stock. The decision of the Company's Board of Directors to deregister its common stock was based on the consideration of numerous factors, including (1) the disproportionately large costs of preparing and filing periodic reports with the SEC, (2) the substantial increase in accounting, audit, legal and other costs and expenses associated with being a public company, particularly due to the Sarbanes-Oxley Act of 2002, (3) the additional demands placed on management and Company personnel to comply with requirements of public registrants, (4) the historically low trading volume in the Company's common stock, (5) the lack of any analyst coverage of the Company's common stock and (6) the fact that many other typical advantages of being a public company are not currently available to the Company, including enhanced access to capital.

"The decision to deregister was made by our Board of Directors to enable us to enhance the financial position of the company," said Robert Gehorsam, CEO of Image Metrics. "The cost savings achieved through deregistration will be substantial and will enable us to focus more resources on delivering our industry leading core products and services."

Although the Company's common stock will no longer be quoted on the OTC Bulletin Board, its stock may continue to be quoted on a tier of the OTC Markets Group quotation service. However, the Company can no longer provide assurance that any broker will continue to make a market in the company's stock. The OTC Markets Group is a provider of pricing and financial information for the over-the-counter securities market. It is a centralized quotation system that collects and publishes market maker quotes in real-time, primarily through its web site, www.otcmarkets.com. The OTC Markets Group is not regulated by the SEC.

About Image Metrics, Inc.

Founded in 2000, Image Metrics has pioneered the field of 3D facial animation through its revolutionary technologies. The company provides complete solutions for the videogame, film, television and commercial markets, and through its consumer products, enables Internet users to create new immersive experiences in games and social networks. Over the past decade, Image Metrics has established itself as the go-to leader in the TV, film, game development and Web content industries with clients such as Activision-Blizzard, Rockstar, Microsoft, 2K Sports, Electronic Arts, Ubisoft, Sega, Sony, Bethesda, Double Negative, Motion Theory and Moving Picture Company. Image Metrics is headquartered in Santa Monica, California with its R&D centre located in Manchester, UK. For more information, please visit www.Image-Metrics.com. For the latest stock information, please visit www.otcmarkets.com.

This announcement contains forward-looking statements about the Company's business prospects that involve substantial risks and uncertainties. Actual results may differ materially from the statements made as a result of various factors, including, but not limited to the market acceptance of the Company's products and services, the Company's ability to maintain client relationships and deliver projects in a timely manner, concentration of the Company's business with certain customers, the impact of technological changes, competition or other factors within the facial animation market, the ability of the Company to establish and protect its intellectual property, the ability of the Company to execute its expanded sales and marketing and product development strategy, and other risks, including those identified in the most recent documents filed by Image Metrics with the U.S. Securities and Exchange Commission. All information in this presentation is as of its published date and Image Metrics undertakes no duty to update this information.

Bender/ Helper Impact
Eric Wein, 310-694-3130
eric_wein@bhimpact.com