EDCI Holdings, Inc. Announces EDC to Consolidate Blackburn-Hannover Disc Volumes

NEW YORK - EDCI Holdings, Inc. (Nasdaq: EDCI) (”the Company”), the holding company
for Entertainment Distribution Company, Inc., the majority shareholder of
Entertainment Distribution Company, LLC (”EDC”), a European provider of
supply chain services to the optical disc market, today announced that, based
on an extensive feasibility analysis, EDC has determined to effect the
closure of EDC’s Blackburn optical disc facility. The closure is expected to
take effect on December 31, 2009, chosen to respect the notice periods of EDC
Blackburn Ltd’s employees and to allow for an orderly wind down of the EDC’s
Blackburn facility. EDC’s Hannover disc manufacturing and distribution
business, however, shall continue as an ongoing operation.

Robert L. Chapman, Jr., EDC Chief Executive Officer, commented, “This
decision was carefully evaluated, and not an easy one for EDC to make. It in
no way or form reflects upon the performance or quality of work undertaken by
EDC’s UK employees. EDC determined to consummate such a Blackburn-Hannover
volume consolidation now precisely due to the prudency of engaging in such a
transition while EDC Blackburn Ltd. possesses the strength to accomplish it
without duress. EDC shall be strengthened materially, both operationally and
financially, by the synergies that result from layering 40-50 million of
incremental disc manufacturing volume onto EDC GmbH (Hannover)’s existing,
substantially profitable facility.”

For approximately the past two years, EDC has been engaged in a strategic
review process seeking to use all commercially reasonable endeavors to
maximize the value of EDC to all of its constituents, including without any
diminution EDC’s hard working employees. Consequently, on December 31, 2008,
EDC consummated the sale of its U.S. Universal Music Group manufacturing and
distribution supply contracts to Sony DADC.

Roger J. Morgan, EDC Executive Vice President of Intl. Operations,
stated, “It must be emphasized that EDC is not exiting the optical disc
business. Quite to the contrary, EDC is taking this commercially reasonable
step towards ensuring that its remaining activities in Europe are secure for
years into the future.”

About EDCI Holdings, Inc.

EDCI Holdings, Inc. (Nasdaq: EDCI) is a multi-national company,
headquartered in New York, that is seeking to enhance shareholder value by
pursuing acquisition opportunities. EDCI is the holding company of
Entertainment Distribution Company, Inc., which is the majority shareholder
of Entertainment Distribution Company, LLC (”EDC”), a European provider of
supply chain services to the optical disc market. EDC serves every aspect of
the manufacturing and distribution process and is one of the largest
providers in the industry. Its clients include some of the world’s best-known
music, movies and gaming companies. EDC’s, operations include manufacturing
and distribution facilities in Hannover, Germany, and a manufacturing
facility in Blackburn, UK.

Source: EDCI Holdings, Inc.

Roger Morgan, Executive Vice President International Operations, +44-1254-505-300