Nelvana has acquired exclusive worldwide rights to produce a television series, made-for-video programs, theatrical motion pictures, and individual programs including made-for-television specials and movies, based on THE BERENSTAIN BEARS. Nelvana has already secured a relationship with Columbia Tristar to distribute THE BERENSTAIN BEARS videos in the United States; the first release is slated for 2003. In addition, Berenstain Enterprises, Inc. granted Nelvana worldwide merchandising and licensing rights. A production deal between Nelvana and PBS will allow the animation company to place THE BERENSTAIN BEARS in the Nelvana one-hour TV block on PBS. Beginning in Fall 2002, the one-hour block on PBS KIDS will debut 15-minute episodes of THE BERENSTAIN BEARS and new 15-minute episodes of Nelvana's SEVEN LITTLE MONSTERS, plus new episodes of the half-hour show GEORGE SHRINKS for a total of 40 one-hour blocks. Under the PBS agreement, Nelvana will also produce interstitial material that will appear between the programs encouraging reading and literacy initiatives, and will create educational material to be distributed to PBS stations and day care centers across the country.