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Imperia Entertainment, Inc. IPRE) announced today that it has issued the following letter to shareholders.

Dear Shareholders,

This is my fourth letter to you as president of Imperia. As I
stated in my first letter, I use these opportunities to express myself
to you and give you full disclosure about the company. I stated in my
last shareholder letter that I would:

A) Always inform you about what is going on with the company, to
the best of my knowledge.

B) Give it to you straight without trying to sugar-coat things.

That is just the way I do business. Like I have said before, I
have a conscience and would never deliberately mislead anyone. I also
believe communication is very important.
Just to give you some quick background on the company structure, I
have been in the entertainment business for several years. I produced
and directed "All That I Need" and got it into theatres prior to being
hired as president of Imperia. I handle the development and the
overseeing of entertainment projects for the company.
Kenneth Eade is the former president, and still serves as chairman
for the company. Both of our bios are listed on the Imperia website:
http://www.allthatineed.net/impaboutus.html.
I have owned and operated other businesses prior to getting
involved in the entertainment business but Mr. Eade is infinitely more
experienced when it comes to fundraising for the company, and he is
currently handling those duties.
In my last shareholder letter, released April 3rd, I stated the
following:
"We had to sell a large amount of shares in order to raise extra
money for our feature film, 'Say It In Russian.' This is a temporary
situation as we are almost done filming. We went over budget in our
foreign location shooting, but it has added great production value to
the movie. The good news is that we have raised the necessary
completion funds."
I also stated the current share structure as:
"The company has approximately 204,000,000 shares outstanding and
83,000,000 of those shares are restricted."
At the time, to my knowledge, this was the absolute truth. As some
of you may or may not know, I often take the time to respond directly
to shareholders. A few days ago, a shareholder wrote me and asked if
the company was selling shares. I responded by saying the following,
and the reply was subsequently posted on the Internet:
"To my knowledge there are no shares being sold by the company,
and I don't know of any plans to sell shares in the near future." At
the time, I was not aware that the company's Regulation D offering had
not yet been closed, because of the need to pay expenses on our latest
film, "Say it in Russian."
When I learned that the company has continued to sell shares in
its Regulation D offering, I became very concerned by this information
as I am close with many shareholders and my reputation is very
important to me. When this new information came to light, I
immediately shared this information with shareholders who contacted
me. Unfortunately this resulted in them calling me a liar, which I am
not.
The reason why the company has continued to sell shares is that
our latest feature film, "Say it in Russian," which Mr. Eade produces,
went over budget. The cost of the movie went from the estimate of $1.8
million that we had on April 3rd to $2.7 million, which was disclosed
by the production accountant in a cost report yesterday. We believe
that this expense was necessary, not only to complete the film, but to
maintain a high quality. To put things in perspective, my movie, which
was released in theatres, cost less than $100,000 to make. "Say It In
Russian" is a much more elaborate and polished movie, shot on
35-millimeter film. It has a recognizable cast and was shot in three
different countries including France, Russia and the U.S. It is only
worth it to us to have a product that is attractive to film buyers, so
it was decided to make the project look as great as possible and to
add value to it. At this point, all of the costs for the actual
filming and production of the movie have been incurred and must be
paid in full. This will take approximately two to three weeks to
complete, and then the only recurring costs will be promotional.
It is my belief that there are people out there who are out to
make a quick buck. There are a lot of ways to do that. The only way to
make a living long term is to focus on longevity and to building a
reputation. No matter what, it is important for me to maintain my
integrity. I have a long-term plan for this company and I want to see
it through.
"Say It In Russian" was largely overseen by Mr. Eade, as it was
his project, and it was put into development prior to me even coming
aboard Imperia last year. I will personally be much more involved in
the upcoming projects.
A finished movie has a value, so now that "Say It In Russian" is
added to our library, it is a big plus for us. I am very excited that
the day is fast approaching that more money will not need to be raised
for it. And I would like to point out that the majority of the budget
for the movie was not raised through the Regulation D offering. The
offering became necessary as a result of going over budget and the
costs having to be paid. The current outstanding common shares of the
company now stand at 528,528,467.
Investors have asked me about why we would sell the stock with the
price so low and why we haven't let it breathe more. The reality of
the situation is that the bills need to be paid now. Another reason is
that a market developed for the stock at these prices that is much
more robust than it was when it was being traded at higher prices. I
believe that the market that is being developed will be of benefit to
shareholders and the company. I should caution you however, that I
never know where the stock price will go. I spend most of my time
focused on building value for the company. The market sets the stock
price, and dictates the volume.
I want to assure you that I will do the best I can to build value
in this company. There are projects currently being worked on in
addition to "Say It In Russian" that are very exciting for our future.
We are also making some aggressive moves getting involved with online
and other distribution.
And, don't forget that Cannes is just around the corner. Now that
"Say It In Russian" is complete we can start selling to distributors.
We have already gotten several offers. I intend to use those sales to
put more value into the company.
I thank you for standing by me, and I greatly apologize for any
confusion or frustration you have been experiencing. I will do my best
to keep you accurately informed in the future.
Thanks again for your patience.

All the best,

James Hergott

President of Imperia Entertainment

This press release contains statements, which may constitute
"forward-looking statements" within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, as amended by the
Private Securities Litigation Reform Act of 1995. Those statements
include statements regarding the intent, belief or current
expectations of Imperia Entertainment, Inc., and members of its
management as well as the assumptions on which such statements are
based. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Important factors currently known to management that could
cause actual results to differ materially from those in
forward-statements include fluctuation of operating results, the
ability to compete successfully and the ability to complete
before-mentioned transactions. The company undertakes no obligation to
update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.



KEYWORD: NORTH AMERICA CALIFORNIA UNITED STATES
INDUSTRY KEYWORD: ENTERTAINMENT MOTION PICTURES PROFESSIONAL SERVICES FINANCE
SOURCE: Imperia Entertainment, Inc.


CONTACT INFORMATION:
Imperia Entertainment Inc.
James Hergott, 310-275-0089
or
Vivian Fullerlove, 214-564-3359 (Public Relations)
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