Following the launch of Hong Kong-based Arm Distribution by producer-director Peter Chan and Andre Morgan of Ruddy Morgan Organization, Applause Entertainment, the Taiwan subsidiary of Chan's Hong Kong-based Applause Pictures, will be renamed Arm Distribution Taiwan.

Applause Entertainment was launched in 2004 to handle distribution of Chinese-language films with the aim of strengthening their weak box office performance in Taiwan. Despite its short history, the company became Taiwan 's top grossing independent distributor in both 2005 and 2006, earning around $3m (NT$100m) each year in Taipei alone.

Arm Distribution Taiwan will be headed by president Patricia Cheng. While the newly-named company will continue to focus on Chinese-language films, it will also acquire non-Chinese films from Japan, Korea, Europe and the US.

Its first release under the new name is Fracture starring Anthony Hopkins which is due to open on June 1, while Peter Chan's $40m The Warlords is scheduled for December. Other titles for 2007 and 2008 include Kirsten Sheridan's August Rush, Iain Softley's Inkheart, Simon Hunter's Mutant Chronicles and Peter Winther's Isobar.

Former general manager of Applause Entertainment Wolf Chen now serves as consultant to the new company.