ContentFilm has completed its previously announced acquisition ofcertain assets of UAV Corporation and UAV Holdings and AlluminationFilmWorks LLC. The company now wholly owns a significantUS DVD distribution operation.

Also, the company has added KerryMcCluggage to its board of directors. McCluggage was recently appointed executive chairman of Allumination, which he ran with Jeff Sagansky.He is a veteran of Universal and Paramount.

ContentFilm struck a $7m cash deal with UAV and a stock dealwith Allumination.

AfterContent's acquisition of Allumination and UAV assets,McCluggage now a significant shareholder in ContentFilm.

The new operation, under thebrand Allumination FilmWorks,will be managed by McCluggage as chairman and CherylFreeman as CEO. Its offices, with 35 employees, will be run in Los Angeles, South Carolina andBentonville. The existing library has about 700 titles.

"We believe there is a greatopportunity to build Allumination into an excitingand profitable DVD operation," said John Schmidt, CEO of ContentFilm. "Our new operation contains successful rightsacquisition teams and successful sales teams, and we hope to build on thatsuccess in the future. The new acquisition sits well in our combined group andgives Content an additional means to exploit its substantial library of assets.We look forward to further integrate the business into our combinedoperations."