Brazilian independent distributor Imovision has teamed up with local post production outfit Teleimage to create a new distribution, exhibition and production entity, Telescope.

The new company has earmarked $4m in seed capital to kickstart its various activities, half of which will be allotted to building an exhibition circuit.

The circuit will include 50 digital screens and 30 arthouse screens. According to Imovision/Telescope president Jean Thomas Bernardini, the company aims to erect 25 digital screens by the end of next year and another 25 in 2004. "We will either build new theatres or transform old ones, some in partnership with smaller exhibitors," he said.

At present Brazil has only four digital screens, two owned by UCI in Rio de Janeiro and Sao Paulo. The other two are in Campinas and Brasilia. "As long time distributors, we know how difficult it is to find arthouse screens so we plan to build or upgrade existing screens that will showcase independent and Brazilian cinema," said Bernardini.

The 15 year old Imovision distributes an average 15 to 20 titles a year. Recent acquisitions include Ken Loach's Sweet Sixteen and Aki Kaurismaki's The Man Without A Past. Telescope will release 25 to 30 titles a year, according to Bernardini.

On the production side, the company initially will offer post production services in exchange for an associate producer title. Telescope hopes to attract international filmmakers to finalise its production in Teleimage's facilities as it has with Nelson Yu Lik Wai's All Tomorrow's Parties.