Exhibit 99.1

IMAGE INNOVATIONS AUDIT COMMITTEE TO RETAIN ACCOUNTING FIRM TO REVIEW 2004
FINANCIAL STATEMENTS. THE COMPANY IS ALSO CONSULTING WITH ITS CURRENT AUDITORS
TO DETERMINE WHETHER TO RE-AUDIT ITS 2003 FINANCIAL STATEMENTS IN LIGHT OF PCAOB
RULING ON ITS PREVIOUS AUDITOR.

NEW YORK, NY--(MARKET WIRE)--December 5, 2005 -- Image Innovations Holdings Inc.
(OTC BB:IMGV.OB - News) ("Image") today announced that the Audit Committee of
the Board of Directors has concluded that an investigation concerning the
consolidated financial statements of Image for the fiscal year ended December
31, 2004 (the "2004 Financials") is necessary to confirm Image's recorded
revenue and receivables in respect of such period. The results of this
investigation could have a material adverse effect on the 2004 Financials as
well as Image's financial condition. Consequently, the Audit Committee has
determined that the 2004 Financials should be examined by a forensic auditing
firm.

In an unrelated matter, the Public Company Accounting Oversight Board (the
"PCAOB") released an Order Instituting Disciplinary Proceedings, Making
Findings, and Imposing Sanctions In the Matter of Clyde Bailey, P.C. and Clyde
B. Bailey, CPA (the "Order"). Pursuant to the Order, in which the registration
of Clyde Bailey with the PCAOB was revoked, the PCAOB determined that in
connection with Clyde Bailey`s fiscal year 2003 audit of Image's financial
statements (the "2003 Audit"), Clyde Bailey relied upon the work of another
audit firm as a component of its audit procedures and the audit evidence
obtained through procedures performed by such other firm constituted
substantially all of the audit evidence obtained to support the audit report in
respect of the 2003 Audit (the "2003 Report"). The Order stated that the level
of planning, testing, supervision and review exercised by Clyde Bailey with
regard to the other audit firm's work was not sufficient to enable Clyde Bailey
to use the work of such other auditor in the same manner as if it had been
performed by Clyde Bailey's own personnel. The Order further stated that
consequently, Clyde Bailey had violated PCAOB standards in issuing the 2003
Report.

Consequently, Image, in consultation with Goldstein Golub Kessler LLP, Image's
independent registered accounting firm ("GGK"), determined that the 2003 Report
should no longer be relied upon. Image, in consultation with GGK, is presently
investigating whether a re-audit of the financial statements for the year ended
December 31, 2003 is necessary or appropriate.



Forward-Looking Statements

All statements herein that are not historical facts or that include such words
as "expects," "anticipates," "projects," "estimates" or "believes" or similar
words are forward-looking statements that Image deems to be covered by and to
qualify for the safe harbor protection covered by the Private Securities
Litigation Reform Act of 1995. Except for the historical information contained
herein, the matters discussed in this news release are forward-looking
statements that involve risks and uncertainties, some or all of which may cause
Image's actual results, performance or achievements to be materially different
from any results, performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements include: Image's
continued history of operating losses; significant competition in its industry;
lack of market acceptance of its products; difficulty of expansion into
additional markets where Image does not have a presence or significant market
penetration; dependence on current management and future ability to obtain
qualified management personnel; ability to secure outside financing at
acceptable rates or terms; and the other risks detailed from time to time in
Image's SEC Reports, including its Annual Report on Form 10-KSB for the year
ended December 31, 2004 and Quarterly Reports on Form 10-QSB filed throughout
2005. Contact:


              Michael Preston
              Chief Executive Officer
              Image Innovations Holdings Inc.
              518-589-9400