UK online DVD rental serviceVideo Island is to acquire Brafilm, a company Video Island says is the largestplayer in Scandinavia.

The deal follows on from theUK acquisitions of DVDs365 in June 2005 and in August 2004.

It forms part of VideoIsland's plans to become the number one online rental operator across Europe.
Simon Calver, CEO of Video Island commented, "We are delighted to be addingBrafilm, the leading player in Sweden and Norway, to our business at this stagein our European growth. Brafilm is a well-established and respected player inScandinavia and has some valuable partnerships including MSN, TV4 in Sweden,TV2 in Norway and Coop. The acquisition provides a solid base for us to expandacross Europe."

Jan Friedman, Chairman ofBrafilm added, "Video Island is the recognised leader in Europe for innovationand growth. Together with Brafilm there will be no other European based onlineDVD rental company in our league. We both share the same passion of providingexcellent customer service, the best range of titles and having strongpartners."

In July this year, rival UK online DVD rentalservice Lovefilm also expanded its business into Europe, taking a controlling stake in Swedish company, Boxman.