Russian exhibitorand entertainment complex developer, Investkinoproyekt, has announced plans toexpand in the Russian regions after attracting the single largest equityinvestment in the Russian industry $40m from international private equity groupCube Private Equity Fund.

"Russia'sexhibition and entertainment industry is one of the few businesses where theopportunities to create nation-wide projects still abounds," saidAlexander Timofeyev, the CEO and co-founder of Investkinoproyekt.

Investkinoproyekthas developed the concept of Kinoplex, a multipurpose family entertainmentcentre that combines a multiscreen cinema with various additional entertainmentservices.

Timofeyev said theidea of Kinoplex will appeal to large Russian audiences.

"Russian peopleare very social and prefer to combine the film viewing experience with otherforms of entertainment," he said.

The investment of$40 million will be used to fund construction of the Kinoplexes in 8 to 10Russian cities.

Kinoplexes in thecities of Volgograd and Yaroslavl are currently in the process of being builtand scheduled to start operating within a year, while Kinoplexes inYekaterinburg, Tolyatti, Samara, Rostov-on-Don and St. Petersburg are expectedto open in 2005-2006.

The number of moviescreens in each Kinoplex ranges from 6 to 10 and each Kinoplex occupies an areaof 7,000 to 10,000 square meters.

Timofeyev said theannual return on investment from each Kinoplex stands on average between 25percent and 30 percent.

Investkinoproyektaims to control at least 15% of Russia's fast-growing film exhibition marketwithin the next five years and up to 40% in the long term.