SANTA MONICA, Calif.–(BUSINESS WIRE)–Genius Products, Inc. (OTCBB:GNPI) “The Company” announced today its expansion into the publishing and distribution of video games. Genius’ management team has extensive experience in the video game industry and this growth opportunity is an example of how the company is increasing revenue and earnings growth through new and expanding brand and content partnerships as well as co-productions.

“Our management expertise in the development, marketing and distribution of video games creates a tremendous growth opportunity for Genius,” said Trevor Drinkwater, President and CEO of Genius Products. “As planned, this marks the beginning of our entrance into the fast growing and exciting interactive software category and the expansion of our distribution expertise in multiple entertainment based product categories.”

Stephen K. Bannon, Chairman of Genius Products said, “In 2008, we enter phase two of our aggressive growth strategy which will focus on revenue growth and improvements in margin through brand and content partnerships, content production, intellectual property ownership, and the acquisition of additional revenue streams. Our planned entry into video games is a great example of value creating, higher margin opportunities we will continue to aggressively pursue in 2008 and beyond.”

The Company plans to offer a number of new game titles in 2008 across a variety of gaming genres. The initial product, anticipated to hit shelves in the summer of 2008, is Line Rider™. Based on the Internet phenomenon and developed by InXile, Line Rider is built upon the simple premise of what happens when a boy and his sled are sent traveling along in a world drawn by the player. With a fan base for the original Internet game numbering over twenty million, the new Line Rider games from Genius Products for Wii™, Nintendo DS™ and PC will take players far beyond the original game with new game modes, new riders, new community features and new creative tools. Offering the ability to create and share gameplay like no game before it, the only limits of Line Rider are the laws of physics and the player’s own imagination.

In Line Rider, the sled-stealing scumbag Chaz is up to no good and only you, as the clever and cunning Bosh, can defeat him. For Bosh to save his true love Bailey, players must solve over 40 mind-bending puzzles created by the #1 Line Rider player in the world, TechDawg. Players can also create their own puzzles and story-telling masterpieces and share them on the Internet by posting on sites such as YouTube, Facebook or the official Line Rider Web site

“Over the past few years, we have built one of the preeminent distribution platforms and assembled one of the leading teams in the home entertainment industry. We are well positioned to deliver record revenue, operating cash flow and earnings by fully exploiting our platform,” stated Mr. Stephen K. Bannon.