German film investment fund KC Medien has confirmed Reginald Hudlin's latest feature Servicing Sara, starring Liz Hurley, Matthew Perry and Bruce Campbell, as the third Mandalay Pictures project that it will co-finance.

In the last year, KC Medien has put up part of the financing for Mandalay's production of Jean-Jacques Annaud's Enemy At The Gates, the opening film at this year's Berlin Film Festival, and Frank Oz's Beyond Borders, which is currently on hold due to the impending Hollywood actors' and writers' strikes. The German company has committed to invest $260m in 20 features to be produced by Mandalay by 2003.

Servicing Sara, which has been shooting since December, follows a woman who attempts to track down her husband in Texas in order to divorce him. The film is shooting in locations including LA, Texas and the UK.

The KC Medien-Mandalay partnership envisages an annual output of seven or eight major pictures, each with budgets between $70m-$90m. About 80%-85% of the production costs are being met by the minimum guarantees that Mandalay can draw from its output deals with such distributor partners as Paramount, Constantin, Nippon Herald and Pathe. KC Medien is putting up the remaining 15%-20%, although it has a 50% participation in the films' revenues.