DistributorKinowelt has taken over the Munich-based film financier and licence traderEpsilon Motion Pictures GmbH and its Zurich subsidiary Epsilon Motion PicturesAG from Kirch Media's insolvency administrator Michael Jaffe.

The dealis part of Kinowelt's new expansion strategy.

Thecompany had cultivated a closer business relationship with Epsilon aftersigning a package deal during this year's Berlinale for Million Dollar Baby,Mr and Mrs Smith, Guess Who, Stay and Half Life.

Kinoweltwill now also handle distribution of the majority of future Epsilonproductions.

Inaddition, Kinowelt will work with Epsilon's current management on the furtherdevelopment of its activities as a film financier with such US independentstudios as Regency and Hydepark.

"Epsilonperfectly complements Kinowelt's field of operations," commented Kinoweltco-founder Michael Koelmel. "We want to strengthen this element of our businessbecause we can thereby significantly raise the growth potential for our overallbusiness."