German animation specialist TV-Loonland has entered into an extensive partnership with Moscow-based Nox Music, one of Russia's fastest growing music and record labels, with a seven-year license deal for 963 half-hour episodes from TV-Loonland's catalogue, including Pettson and Findus, Cramp Twins, Letters From Felix and Little Ghosts.

The agreement covers CIS/Russia, the Ukraine and the Baltic States (Latvia, Lithuania, Estonia) for several productions from TV-Loonland's own studios as well as its production subsidiaries Sunbow Entertainment and Telemagination.

At the same time, a merchandising agency agreement has been signed for the animation programmes to increase their popularity in the former Soviet Union.

According to Iosif Prigozhin, executive director of Nox Music, the deal is "an important stepping stone in our strategy to penetrate the TV, video and merchandising market."

The deal comes only days after TV- Loonland announced the sale at MIP-TV of one of its hottest pre-school properties Connie the Cow and live action series In A Heartbeat to The Disney Channel.

Last week, TV-Loonland reported an increase in turnover of more than tenfold during last year to $66.6m (DM 145.1m) with an annual surplus of $7.4m (DM 16.1m) and earnings before interest and tax (EBIT) of $9.8m (DM 21.4m), up from 1999's $3.5m (DM 7.7m).