SANTA MONICA, Calif.--(BUSINESS WIRE)--Genius Products, Inc. (OTCBB:GNPI - News) reported today it has filed its Annual Report on Form 10-K for the year ended December 31, 2006 with the United States Securities and Exchange Commission ("SEC"). The Company makes available the annual report under the investors section of its corporate website www.geniusproducts.com. This information is also available at the SEC website www.sec.gov.

On July 21, 2006, Genius Products, Inc. (the "Company") completed a strategic transaction (the "TWC Transaction") with The Weinstein Company LLC ("TWC") and its parent company, The Weinstein Company Holdings LLC ("TWC Holdings"), and formed a venture named Genius Products, LLC (the "Distributor"). The information in the Company's Form 10-K, filed today, pertaining to its business operations reflects the operations of the Company prior to the closing of the TWC Transaction and the operations of the Distributor after the closing of the TWC Transaction. In addition, the Company included standalone financial statements and footnotes of the Distributor.

Pro forma gross revenue, before returns, discounts and allowances, increased to over $387 million for the full year of 2006. The revenues discussed above are the pro forma results reflecting the consolidation of the financial statements of the Distributor with Genius Products, Inc.

As a result of the closing of the TWC Transaction, the Company recorded an extraordinary gain of $54.2 million after taxes. The extraordinary gain represents the fair value of the 70% interest in Genius Products, Inc. relinquished in the TWC Transaction, determined by reference to the Company's equity market capitalization on July 21, 2006, less the carrying amount of net assets.

The net loss before extraordinary gain was $45.4 million for the year ended December 31, 2006. Including the extraordinary gain, net income was $8.8 million for the twelve months ended December 31, 2006.

About Genius Products

Genius Products, Inc. (OTCBB:GNPI - News), along with The Weinstein Company Holdings LLC, together owns Genius Products, LLC, a leading independent home-entertainment distribution company that produces, licenses and distributes a valuable library of motion pictures, television programming, family, lifestyle and trend entertainment on DVD and other emerging platforms through its expansive network of retailers throughout the U.S. Genius handles the distribution, marketing and sales for such brands as Asia Extreme(TM), Discovery Kids(TM), Dragon Dynasty(TM), Dimension Films(TM), ESPN®, IFC®, RHI Entertainment(TM), Sesame Workshop®, The Weinstein Company® and WWE®. Genius Products, Inc. is the managing member of Genius Products, LLC

Contact:

GNPI -- Investor Relations
John Mills / Anne Rakunas, 310-954-1100

or

GNPI -- Media Relations
Alecia Pulman, 203-682-8200

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Source: Genius Products, Inc.