UK-based financing, salesand distribution company Intandem Films, production company Spice Factory UK,and producers Colin Pons of Studio of the North and Mark Thomas of BallparkProductions have set up a new venture, FearFactory, to produce horror films andpsychological thrillers.

Intandem CEO Gary Smith toldScreen that FearFactory, whichwill be set up under the Enterprise Investment Scheme in the UK, initially aimsto raise $10 million from private investors in the UK. The genre label'sprojects will be budgeted at $3 to $6 million per film.

"We want to work on goodquality commercial projects," Smith said. "Over the next two to three years, wewant to have hit films."

The initial slate ofprojects hasn't been announced, but Smith said that Spice Factory's MichaelCowan and Jason Piette were looking at a number of exciting scripts. "We've gota lot to choose from," Smith said.

FearFactory is also workingwith Italian production and post-production house Lumiq Studios. The companywill work with various partners for home video distribution deals.

Separately, Intandem isworking on four horror titles that will not be financed by FearFactory but willbe marketed under the FearFactory banner once completed. Those are PrimalScream directed by Albert Magnoliand produced by Steve Gagnon; The Lodge directed by Michael Lee Baron and produced by Michel Shane and AnthonyRomano; Run directed by WarrenSonoda and produced by Mihkel Harilaid; and Worst Nightmares directed by Mark Roper and produced by AlanRobinson.

Meanwhile Intandem hascemented its US distribution plans for Stephen Woolley's Stoned, the biopic ofRolling Stones guitarist Brian Jones which played at the Edinburgh, Toronto andSan Sebastian film festivals among others.

The film will opentheatrically in March 2006 through Joe Kovacs' Screen Media Ventures and willgo through that company's home entertainment deal with Universal. Intandem willwork closely with Screen Media Ventures on the film's release, just as it isworking alongside Vertigo Films for the UK release on Nov 18.

Meanwhile Intandem hasclosed deals for the film with Presidio in Japan, Lumiere in Brazil, Lusomundoin Portugal, Non-Stop in Scandinavia, Village Roadshow in Greece, Bridge inBenelux, Noah in Israel and Fivia in Croatia.

On Ann Turner's stalkerdrama Irresistible starring SusanSarandon, Sam Neill and Emily Blunt, Intandem has closed deals with Icon forthe UK, Blue Star for Italy, Square One in Germany, Palace in Australia,Village Roadshow in Greece, Bridge in Benelux, New World in Bulgaria and Romania,Vision Africa for South Africa, Lusomundo for Portugal, Noah for Israel, andHunter for Turkey.