New UK distributor Diffusion Pictures hasacquired all UK rights to director Andrew Bujalski's first two films, Mutual Appreciation and FunnyHa Ha.

Diffusion struckthe deal with US-based Goodbye Cruel Releasing and FilmFour/Channel4 International at the Edinburgh International Film Festival, where Mutual Appreciation is playing.

The films havealso been sold to New Star in Greece and Accent Films in Australia.

"We are delightedto be launching our slate by backing such a refreshing, new talent as Andrew Bujalski," said Jono Stevens ofDiffusion. "These two films show why he is regarded as one of the mostexciting, original voices in US cinema and we look forward to introducinghim to UK audiences."

Mutual Appreciation, about an aspiring musician hanging out with friendsin New York,opens Sept 1 in New York through Goodbye Cruel Releasing. Bujalski'sdebut Funny Ha Hafollows the rootless life of a recent college graduate.

London-based Diffusionsaid it plans to release five to six films per year theatrically. In addition,the company plans to launch a production fund to executive produce selecttitles.