The new partnership delivers a number of important benefits to the British film industry. It creates a production house with long-term viability; brings $25 million of matching US investment to support British film production; and provides access to a successful worldwide distribution network for UK filmmakers.

DNA and Fox Searchlight are jointly investing $50 million in the new partnership, the DNA investment comprising $25 million of production finance previously awarded to it by the Arts Council of England. This capitalisation will provide the new company with a unique opportunity to grow in the coming years. All new film projects will be green-lit directly by DNA Films from London and there is a guaranteed release commitment from Fox Searchlight.

DNA Films was founded in 1997 by two of Britain's most successful producers, Duncan Kenworthy (FOUR WEDDINGS AND A FUNERAL, NOTTING HILL) and Andrew Macdonald (TRAINSPOTTING, THE BEACH). The company was awarded a film production franchise with an allocation of £29 million of matching production finance to make British films. To date it has financed a slate of six films, including Danny Boyle's 28 DAYS LATER, THE PAROLE OFFICER, and Damien O'Donnell's HEARTLANDS. 28 DAYS LATER, which cost $9 million to make and was co-financed and distributed worldwide by Fox Searchlight, has so far grossed $45 million in the US alone.

Fox Searchlight Pictures, a division of Twentieth Century Fox, is one of the film industry's most successful speciality distribution companies with an international track record for spotting film talent and skilfully financing and marketing smaller, edgy films to achieve international mainstream success. Last year Fox Searchlight's box office increased by 200% over 2001. The company's portfolio includes THE FULL MONTY, WAKING NED DEVINE, SEXY BEAST, BOYS DON'T CRY, ONE HOUR PHOTO, ANTWONE FISHER, THIRTEEN and DNA Films 28 DAYS LATER which has now earned more than $75 million worldwide. Fox Searchlight also released BEND IT LIKE BECKHAM in the US, another Lottery-backed film and a major success with more than $28 million at the US box office and $72 million worldwide. Both British films are still earning box office revenues. Fox Searchlight's upcoming slate includes Merchant-Ivory's LE DIVORCE, Jim Sheridan's IN AMERICA, Bernardo Bertolucci's THE DREAMERS, David Russell's I HUCKABEES and Alexander Payne's SIDEWAYS.

Andrew Macdonald will run the new company, alongside Allon Reich, who joined DNA this year from Miramax. Duncan Kenworthy, who has spent the last 18 months producing Richard Curtis's directorial debut LOVE ACTUALLY for Working Title in association with DNA Films, will step down from his co-chairman role but continue as a non-executive director.

Andrew Macdonald of DNA says, "Our partnership with Fox Searchlight is very exciting, we have a shared vision and approach to filmmaking and we are both committed to producing British films. The successful release of 28 DAYS LATER confirms Searchlight's exceptional sensitivity and skill at distributing distinctive films to a broad international audience."

Peter Rice, President Fox Searchlight Pictures, says, "The British film industry consistently provides the world with exciting films and dynamic film making talent on both sides of the camera. Fox Searchlight has been a beneficiary of British films and talent. This new partnership formalises our commitment to British films and is a natural outgrowth of our relationship with Andrew and the fantastic team at DNA. Thanks to the strategic foresight of John Woodward and his team at the UK Film Council, we have married a formidable, well financed production company with a global distribution network."

Duncan Kenworthy of DNA Films says, "Global distribution and guaranteed financing for a slate of films are the twin keys to the growth of the British film industry. By forging this important long-term partnership with Fox Searchlight, Andrew has succeeded in finally turning DNA Films into an important tentpole for the independent British film sector."

John Woodward, Chief Executive Officer for the UK Film Council says, "This new partnership will make an important contribution to creating a truly sustainable UK film industry, by providing a long-term source of finance for the production of new UK films, and access to a worldwide distribution network so that people across the world have a chance to see them. "As well as enabling the production and distribution of a series of new UK films, the agreement will also provide a return for the UK Film Council on the Lottery funds being invested which will help to fund the development of the film industry in the UK."