Picturehouse has picked up allNorth American rights to Guillermo del Toro's dark fairytale Pan's Labyrinth.

Set in 1944 rural Spainduring Franco's facist regime, the story centres on the young daughter of anofficer who concocts an imaginary world to deal with the realities of post-warrepression. Mirabel Verdu, Sergi Lopez, Ivana Baquero and Doug Jones star.

"This film has been thesingle most fulfilling creative experience of my career," del Toro said. "Hopefullyit represents a future direction for my work. Pan's Labyrinth is a passion project and it took over two years of mylife to see it made the way I wanted it."

Telecinco produced throughits division Estudios Picasso along with Tequla Gang's Bertha Navarro and delToro, and Esperanto Filmoj's Alfonso Cuaron and Frida Torresblanco.

Cuaron, del Toro,Torresblanco and Navarro produced and Alvaro Augustin served as the executiveproducer.

"This is a stunningfilm, both in its visuals and narrative," Picturehouse president BobBerney said. "Guillermo is a master filmmaker and the ultimate film fan aswell. It's a pleasure to be working with him and my friends Alfonso andFrida."

Berney, senior vicepresident of acquisitions Sara Rose and New Line's senior vice president ofbusiness and legal affairs Carolyn Blackwood negotiated the deal with WildBunch's Carole Baraton on behalf of the filmmakers.