France produced a record number of films in 2005 accordingto national film body the CNC. In total, 240films were given a green light by the film board including 187 which wereinitiated by the French.

CNC president Veronique Cayla noted her enthusiasm for the record which represents20 films more than the previous year.

Still, she was cautious in adding that the CNCwould be vigilant, "We will have to see at what rhythm we can continue thisgrowth. More films also means more of a risk in termsof financing. We will try to see how we can stabilize so we can better financefilms."

Cayla also noted that a bi-polareffect has been created with an abundance of films being produced at budgetsunder $1.2m (Euros 1m) for 22% of the total and an increase of films budgetedover $8.4m (Euros 7m) for 20% of the overall.

In terms ofco-productions, there were 61 in 2005 with one or more foreign partners versus37 in 2004. Cayla pointed out that this has largelybeen due to the tax credit scheme that was inaugurated in 2004.

Total investment was up 22.6% to $1.5b (Euros 1.3bn), $1.1bn(Euros 916.97m) of which came from Franceand $445.9m (Euros 369.2m) from abroad.

Investments from terrestrial networks, traditionally animportant source of financing, dropped off by 4.2%. Caylanoted, however, that growth in terms of investments from other areas such asthe Sofica tax shelters, regional funding and the CNCitself were on the rise.

For the year, Gaumont was theleader in terms of number of films produced with seven followed by EuropaCorp, Gemini Films and Les Films d'Iciwith six each, Agat Films and MaiaFilms with four each, ARP, Fidelite, Orsans Prroductions and Pathe Renn Production with threeeach while 125 companies produced only one film.