Montreal-based producer-distributor Behaviour Communications is selling its new media subsidiary, which operates its Digital Studio, to Tube Studios for about $586,000 (C$850,000).

The deal, to close March 6, will transform Tube into Montreal's largest studio specialising in 3D animation and visual effects.

"The acquisition of the studio allows Tube's growth to accelerate," said Tube's interim chief Dominique St-Louis. "Now we will be able to better respond to the growing demands for 3D animation and visual effects from the international film, television and advertising market."

Behaviour recently announced that it expects to post a significant net loss from discontinued and continuing operations for the year ended September 30, 1999.