Disney has already announced plans to capitalize on the success of its 2D animated summer hit LILO & STITCH with a direct-to-video sequel and a television series. Thomas Schumacher, head of Disney Feature Animation, made the announcement. The video sequel, currently entitled STITCH! -- THE MOVIE, is slated for release in 2003 and will serve as a bridge between the feature film and the television series, currently under development with the working title of STITCH! -- THE TV SERIES, and set to launch on Disney Channel in fall 2003. In STITCH!

On July 9, 2002 children's television producer Nelvana laid off 65 staff in its production department across all positions. According to a Nelvana spokesperson, the move was part of a strategic reorganization of the department to shift towards a team-based production unit with a smaller full-time staff, allowing the incorporation of more contract positions. Some of those laid off were given call-back dates for employment on future Nelvana projects. Nelvana is owned by Corus Entertainment, a Canadian-based media and entertainment company.

Studio City, California-based animation studio Fred Films has signed an agreement with the International Alliance of Theatrical and Stage Employees and its Motion Picture Screen Cartoonists Local 839 IATSE (Local 839). Fred Films and Local 839 have been in negotiations since the union received representation cards from a majority of the company's staff.

German animation company RTV Family Entertainment has written off 100 million Euros in a bid to keep the company alive, after the collapse of the Kirch Media Group and other precipitating factors led to a near collapse of RTV last month. RTV has returned all shares in Dutch documentary production company Off the Fence to Ellen Windemuth, former owner and previous managing director. In return, Windemuth releases RTV from its financial obligations. In addition, RTV has written off Sydney, Australia-based subsidiary Energee Entertainment in its entirety.

Spanish production companies MSL and Grupo Trimagen have recently signed a joint venture agreement to create animated programming. The new international company, MSL-TRIMAGEN, will develop, produce and market a wide range of animated series and feature films. The company is currently working at the head offices in Madrid and Barcelona on several projects, including BUNNIBAL, a 26 x 13-minute animated series currently in pre-production.

LightWork Design, a supplier of computer graphics software for rendering, simulation and verification solutions, announced the formation of a strategic partnership with graphics hardware developer 3Dlabs. The two companies will work together to enhance the interactive performance of the LightWorks rendering engine when used with 3Dlabs hardware. LightWorks provides a range of rendering and lighting simulation capabilities to any application program dealing with 3D objects or environments.

Internet animation provider Mondo Media has entered into a content
agreement with cable network Comedy Central for "Cartoon of the Day,"
featuring the best of Mondo Mini Shows on comedycentral.com. The
shows will be culled from Mondo Media's library of over 3,000 minutes
of original animation, including series such as THE GOD & DEVIL SHOW,
HAPPY TREE FRIENDS and HEAVY METAL GUY. As part of the agreement,
Mondo will also supply Comedy Central with the best material from
other third-party Internet animation creators, including several

With no staff and no senior management, it seems as though Vancouver-based Sextant Entertainment Group Inc., co-producers of THE MR. HELL SHOW!, is no longer in business. A press release issued by Sextant announced that the company has been put into receivership after it was unable to come to an arrangement with creditors pursuant to the Companies' Creditors Arrangement Act (CCAA) that Sextant had been granted in early June.

Lucasfilm Ltd. has spun off its
THX digital cinema division as an independent company, THX Ltd.
Lucasfilm remains an investor in the newly formed, privately held
company, along with other corporate and private investors. The
formation of THX Ltd. will allow the company the opportunity to
expand into markets outside of Lucasfilm's core areas. THX Ltd. will
reorganize its programs and services into five key areas: THX
Studio, THX Cinema, THX Home, THX Mobile and THX Games. In the

Digital Production Management
(DPM) systems provider NXN Software has expanded its Japanese
operations by opening a new subsidiary in Tokyo and appointing
industry veteran Shigemitsu Ejiri as vice president of sales, Japan.
Ejiri comes to NXN Software from Borland, Japan, where he served as
the vice president of sales. Prior to Borland, Ejiri spent 16 years
at Nichimen Corporation, holding the position of executive director
and head of sales for four years. NXN DPM solutions are used to