DigitalProduction Studios (DPS), the New Jersey-based 3D animation subsidiary of IDTMedia, has signed a binding letter of intent to acquire a controlling interestin direct-to-video and TV computer animation house Mainframe Entertainment.

The move, whichis subject to regulatory approval, is the latest plank in DPS' globalexpansion strategy following the partnership with John Williams' UK-basedVanguard Animation and acquisition of The Simpsons animation house Film Roman last summer.

Since itsinception in 1993 Mainframe Entertainment has established itself as a prolificcreator of animated content, offering creative and production services as wellas product licensing and merchandising for third parties.

Headquartered inVancouver with offices in Los Angeles, the company has licensed broadcastrights to its animated special Scary Godmother Halloween Spooktakular to Buena Vista International.

Mainframerecently completed work on the direct-to-video CGI feature Barbie AsRapunzel and itsprogramming has aired on The Cartoon Network, ABC, and FOX networks in the USand YTV and CBC in Canada.

'Thisacquisition is a vital part of IDT's long-term growth strategy,'IDT's chief executive officer Jim Courter said in a statement.

'MainframeEntertainment will provide DPS with additional programming, new distribution channelsand increased revenue.'

Mainframe chiefexecutive officer Rick Mischel said the move was a perfect fit.

'With DPS'innovative Global Animation Studio streamlining our production process andmaximising our productivity we can better execute our plan of developing andexploiting the best in proprietary properties while maintaining the highestlevel of CGI animation for our own properties and our clients,' he said.

IDT Media is a subsidiary ofIDT Corp, the multinational carrier, telephone and technology company.