Production agency CeMEDIA (Central European Media Workshop) has added Hungary's FirkaFilm to its production network and named it "First Base Studio" for the CeMEDIA production pipeline. Firka will control the overall production process and subcontract to other CeMEDIA member studios. Under contract with Varga Studios, Firka has provided animation services for an ANGELINA BALLERINA special and most recently completed the animation for 5 episodes of the series MR. BEAN. CeMedia will be at MIPCOM to distribute nearly 50 hours of animation provided by their European member studios.

Barrie Usher, president and CEO of Canadian children's entertainment company Cinar, has submitted his resignation effective September 15, 2002. George Rossi, senior vice president and CFO, will replace him in the interim until a new president and CEO is appointed. Cinar is emerging from a series of financial scandals that began in 1999, stemming from illegally obtained Canadian tax credits, non-approved investments in offshore accounts and the misappropriation of funds by senior executives.

Executive producer Steve Schofield, along with creative directors Chris Jones and Loni Peristere, all formerly of Radium, have formed visual effects company Zoic Studios. The new company, based in Los Angeles, California, will provide visual effects and CG animation for commercials, music videos, feature film and episodic television. The team is currently providing effects for the new Fox show FIREFLY, as well as the popular series BUFFY THE VAMPIRE SLAYER and ANGEL.

New York-based 3D design and animation company Phactory Productions, Inc., has merged with broadcast design studio Ultraviolet to create UV Phactory. The newly formed creative solutions studio offers 2D and 3D design and animation, live-action production and strategic design solutions for advertising agencies and the broadcast and cable communities. The company has already begun work on a host of jobs including projects for Miramax, HBO, TBS and The Sci-Fi Channel. UV Phactory will operate under the management team of Scott Sindorf, Damijan Saccio and Jeff Linnell.

Interactive entertainment producer NewKidCo International Inc., which develops games based on popular licensed characters such as WINNIE THE POOH and THE MUPPETS, announced its 2nd quarter 2002 results. The company had a net loss of $1.8 million for the quarter versus a net loss of $8.5 million for the same period last year. Income for the six months was a loss of $3.6 million versus a loss of $8.2 million last year, with revenue for the three and six months at $1.2 million and $3.1 million respectively versus $1.7 million and $5.3 million for the same period one year ago.

C21 Media reports that HIT Entertainment has finalized its acquisition of Gullane, in a deal worth approximately US$215.2 million. Gullane had consistently rebuffed HIT's acquisition proposals until July 2002, when Gullane's directors agreed to a takeover by HIT following support from major shareholders Britt Allcroft and Angus Wright. Adam Mills, chairman of Gullane said: "After careful consideration and a comprehensive review of alternatives, the Board has concluded that an acquisition of Gullane by HIT is in the best interests of shareholders.

Korean animation studio Sunwoo Entertainment has announced the establishment of Sunwoo USA, headquartered in Burbank, California. The U.S. headquarters will be the new business development, talent recruiting and international content development arm of Sunwoo Entertainment, which has produced hundreds of episodes of television series including RUGRATS for Nickelodeon, PEPPER ANN and RECESS for Disney and THE FAMILY GUY for Fox. Jae Moh, the executive vice president of Sunwoo Entertainment, will become the CEO and president of Sunwoo USA.

Brooklyn, New York is the home of a newly formed animation studio called Dancing Diablo. The studio set up shop in January 2002, and has already taken on some high profile projects, including work on Fox Kids' upcoming series TEENAGE MUTANT NINJA TURTLES. Founded by director / illustrator / motion designer Beatriz Helena Ramos, who at age 22 founded Caracas Comics Studio in her native Venezuela and has worked on such projects as MTV DOWNTOWN and John R.

According to THE HOLLYWOOD REPORTER, DreamWorks is in the process of enhancing its animation production capabilities and hopes these enhancements will cut the production time for CG animated features in half. This would allow DreamWorks to release two to three animated features per year. DreamWorks just closed two major financing transactions totaling $1.5 billion. The new financing consists of a $1 billion film securitization, which DreamWorks is labeling the first of its kind in the film industry, as well as a $500 million revolving credit facility.

Independent animation company Film Roman has reported that revenue increased by 18% or $1.7 million, to $11.1 million for the quarter ended June 30, 2002 compared to $9.4 million for the quarter ended June 30, 2001. The revenue increase is attributed to the delivery of more fee-for-services television episodes. Net loss attributable to common stock for the second quarter of 2002 was ($169,756) or ($0.02) per share compared to a net loss attributable to common stock of ($1,293,641) or ($0.15) per share for the second quarter of 2001.