Phase 4 Films(R) and Nelvana Enterprises Sign Multi-Year DVD Agreements for
Both the U.S. and Canada

TORONTO, Dec. 9 /CNW/ - Phase 4 Films(R) and Corus Entertainment's Nelvana Enterprises announced today two long-term agreements whereby Phase 4 Films Inc. will market, manufacture and distribute many of Nelvana Enterprises' existing and upcoming children's properties on DVD in the U.S. and Canada. Top brands covered in the agreement air on Treehouse, YTV, TELETOON and Nickelodeon in Canada, and PBS, Cartoon Network, CBS, qubo, Noggin and Nicktoons in the U.S. The brands include Toopy and Binoo, Franklin, The Berenstain Bears, Max & Ruby, 6TEEN, and more. The DVDs will be released under Phase 4's children's and family label, kaBOOM! Entertainment.

An earlier partnership generated over 6.5 million units in sales within the Canadian market. This new collaboration includes U.S. rights for the first time, offering a significant area of growth for both companies.

In Canada, most of the properties are branded under the Treehouse Presents, TELETOON Presents or As Seen on YTV labels, which have grown to become three of the most trusted brands in the market.

"This agreement solidifies a longstanding relationship that dates back to 1997," said Berry Meyerowitz, President and CEO of Phase 4 Films. "When it comes to high quality children's television properties, there is no better partner than Nelvana. We are thrilled to take our partnership to the next level with continued exploitation in Canada, as well as expansion into the U.S. market. This pact will position Phase 4 as one of the largest U.S. distributors of children's non-theatrical animated content which will allow us to better exploit opportunities in the market and cater to the needs of our customers."

"We are delighted to continue our longstanding partnership with the team at Phase 4 Films," said Peter Maule, Vice President, Worldwide Home Entertainment and Digital Media, Nelvana Enterprises. "Collectively we have built an exceptional line up of kids branded DVDs enjoyed by millions of families throughout North America. We have been long-term partners, and this new deal allows us to continue benefiting from their tier one sales, marketing and retail distribution not only in Canada, but in the U.S. as well."

Upcoming releases under the new agreement include first-time releases for both Waybaloo and Big & Small.

About Phase 4 Films Inc.

Phase 4 Films(R) distributes features films, television and special interest content across all media in the North American market. Its label, kaBOOM! Entertainment, is one of the leading pre-school and children's brands in the market.

About Nelvana Enterprises

Nelvana Enterprises is owned by Corus Entertainment Inc., a Canadian-based media and entertainment company. Corus is a market leader in specialty television and radio with additional assets in pay television, advertising services, television broadcasting, children's book publishing and children's animation. The company's multimedia entertainment brands include YTV, Treehouse, W Network, CosmoTV, VIVA, Movie Central, HBO Canada, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107. Corus creates engaging branded entertainment experiences for its audiences across multiple platforms. A publicly traded company, Corus is listed on the Toronto (CJR.B) and New York (CJR) exchanges. Experience Corus on the web at www.corusent.com.

    
    For art and Publicity materials, please visit ftp.phase4films.com,
    Username: pr_nelvana
    Password: Nelvana
    

SOURCE PHASE 4 FILMS

For further information: For further information: Diana Pitt, Publicist, Nelvana Enterprises, (416) 530-2801, diana.pitt@corusent.com; Lexi Pathak, Phase 4 Films, (416) 783-8383 ext. 284, apathak@phase4films.com

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PHASE 4 FILMS

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