Kinowelt is forecasting a 30% year-on-year increase inturnover to over $82.4m (Euros 70m) by the end of 2005. This financial forecastwill see the company return to its position as one of the key German players.

Thisgrowth, despite the overall market trend, was largely down to thetheatricaldistribution division which expects to more than triple itsturnover to around $20m (Euros 17m)thanks to such box-office hits as MillionDollar Baby (over 500,000 admissions), Mr& Mrs. Smith (3.5m admissions), SAW(over 500,000) and The March Of ThePenguins (over 1m).

Kinowelt Filmverleih was thesecond most successful German independent distributor - after Constantin Film - with a market share of 5.5% and 5.8mtickets sold for Kinowelt releases up until the endof November.

Inaddition, the home entertainment division, which garnered a 4% market sharethis year, has seen turnover increase over 2004's performance by 12% to almost $58.8m (Euros 50m), while license tradingactivities are forecast to generate $5.8m (Euros 5m) in 2005.

"Thisconstant upward trend shows that we have successfully managed the comeback of Kinowelt and are strategically well positioned," Kinowelt founder Michael Koelmelnoted.

In2006, Kinowelt plans to further consolidate its marketposition through internal integration, including the re-location of the filmfinancier Epsilon Motion Pictures from Munich and Zurich to Kinowelt'sheadquarters in Leipzig.