US independent Anchor Bay hasacquired domestic theatrical, TV and home video rights to Ambush Entertainmentand Goal Line Productions' horror picture Dead And Breakfast, which stars Jeremy Sisto, David Carradine and GinaPhilips.

Arclight Films is handling international sales on the $500,000picture, which was written and directed by Ambush senior partner MatthewLeutwyler and centres on a group of friends who become trapped in a bed andbreakfast by the possessed residents of a small town.

Ambush chief executive officerand senior partner Miranda Bailey and Leutwyler negotiated the deal with thedistributors which is likely to launch the film on limited release in early2005.

Dead And Breakfast has won a clutch of awards from such festivals as Weekend of Fearin Germany, Dead By Dawn in Scotland and the San Francisco Horror Fest.

Ambush is currently preparing the $3m sex comedy The OH In Ohio with Parker Posey and Danny DeVitoattached to star.

Principal photography is due to begin in November in Los Angelesand Ohio. Bailey will produce with Amy Salko Robertson and Ambush partnerFrancey Grace. Billy Kent makes his directorial debut on the project.

The company is also developing the larger budget horror picture Unearthed (working title), which Leutwyler isattached to direct. Ambush will produce with Ty Ruben Ellington and DJ Marini'sCombustion Studios, whose visual effects credits include Hellboy.

The company is also developing a female drama with Mandy Moore,tentatively titled Finding Jenua.

Los Angeles-based Ambush was formed in 2002 with the backing ofthe founder of Janus Funds, and plans to develop and produce one to twopictures a year in the $5m-$15m budget range.

Prior to Ambush, Bailey was an actress, writer and independentproducer and served as executive producer on the short film This SpaceBetween Us.

Leutwyler directed This Space Between Us in 1996 and a year later made hisfeature directorial debut with Road Kill before going on to work in television.

Ambush partnersare Bailey, Leutwyler, Grace, and Jun Tan.