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NEW FILMS INTERNATIONAL LAUNCHES NEW WORLDWIDE

FEATURE PRODUCTION AND SALES DIVISION

PARK CITY, UT January 20, 2004 ¾ New Films International has launched a new feature film production and sales division, focused on the worldwide distribution of films, production of two to three films a year and investment in projects in need of finishing money. For 2004, New Films has earmarked $10 million for the development and production of its own feature film projects. The announcements were made today at the Sundance Film Festival in Park City, UT by New Films President, Nesim Hason.

“We are very pleased to announce the company’s expansion into independent production and worldwide distribution here at the Sundance Film Festival,” said Hason. “The festival brings out the most talented independent filmmakers in the world whose vision, perseverance and sprit is what drives this great industry.”

The company has also announced it has expanded its worldwide footprint by opening three new offices in Latin America and has acquired the Latin American, Eastern Europe, Turkey and the Baltic rights to the feature film The Merchant of Venice from Arclight Films.

Directed by Michael Radford (The Postman), the $30 million Merchant of Venice, stars Al Pacino, Joseph Fiennes and Jeremy Irons and is currently in production in Luxembourg. The film is based on the William Shakespeare play about Bassanio’s quest to marry Portia and his attempt to free Antonio from Shylock.

New Films International also announced that Izak Saul, will join the company as Vice President of Latin American Markets. Prior to joining, New Films, Saul was Senior Sales Executive for World Bazaar International in Los Angeles.

The acquisition of The Merchant of Venice was negotiated by Ron Gell, Vice President of Worldwide Acquisitions and Co-Production for New Films International and Nicolas Chartier on behalf of Arclight Films.

Gell is the former head of Radio Pictures, the Indi-film division of RKO Pictures. During his time at RKO, Gell Co-Executive Produced RITUAL, shot entirely in Jamaica, the next “Tales from the Crypt” film from Dimension and Silver Pictures, negotiated the US deal for “The Velvet Touch” with Artisan Entertainment and Sundance award winning director Raymond DeFelitta. Additionally he supervised the development of “THE LOCKED ROOM” at Fine Line with Lem Dobbs, Alexander Payne and Joseph Ruben. Gell was integral in creating an alliance with Buena Vista International and RKO International. A veteran of the Sundance Film Festival, Gell while serving as Director of Acquisitions at Sony’s SVS Films, was responsible for financing and overseeing the production of To Sleep With Anger starring Danny Glover, which won a Special Jury Prize at Sundance.

NEW FILMS INTERNATIONAL, LLC (NFI) was established in 1996 as a worldwide film distribution company, which was originally headquartered in New York City and mid-2001 relocated to Beverly Hills, CA. Over the years, the company has become the preeminent supplier of feature films, television movies and programming series for broadcast and cable entities operating in E. European countries and Turkey. New Films' success has been in its ability to distribute regular theatrical and classic line properties throughout the European marketplace from major suppliers such as: Focus, New Line, Intermedia, Lakeshore and Miramax.

Some of the company’s recent key acquisitions have included: Chicago, A Man Apart (starring Vin Diesel), Duplex (starring Ben Stiller and Drew Barrymore), and Freddy Vs. Jason.

In addition to distribution, New Films is involved with theatrical exhibition with 3 movie theaters in Istanbul and maintains a diverse video library consisting of programming ranging from theatrical feature films, movies of the week, sitcoms and soap operas to prime time series, cartoons, documentaries and game shows, from suppliers such as Passport, Adler, Associated and others.