FIVE NEW FILMS FOR INTERNATIONAL SALE

Beyond International Limited (ASX-BYI) has finalised arrangements for the exclusive international sales and marketing rights to five of the six new feature films it expects to market this financial year. Further agreements are expected to be finalised before the end of this year.

These five feature films have total budgets of approximately $46,000,000 and are fully funded by various combinations of pre-sales and non-recourse third party investment. It is currently expected that all these films will be produced and delivered to Beyond Films for international sale in the first half of 2004.

Beyond Films has exceeded its budgeted profit for the first quarter to 30 September 2003 and Director’s currently expect it to comfortably meet its 2004 Budget Revenue and Profit. This strong profit projection to 30 June 2004 by Beyond Films follows 18 months in which it underwent a complete re-staffing of its operations and introduction of a new business model.

These five new feature films illustrate Beyond Films' new strategy of acquiring the exclusive international rights to feature films independently produced primarily in Australia, the UK and the USA. These films are typically available for sale to all media including Theatrical, DVD/Video and all forms of television in those territories that have not been pre-sold to finance the production of the film. This strategy depends on Beyond maintaining an active role with potential film producers during the development phase and assisting in the pre-sales that ensure a film can be made.

Beyond maintains its independence and objectivity by not investing in any feature films. Beyond doesn’t produce feature films so these production budgets will not form part of the 2004 consolidated revenue.

Beyond International continues to reduce the level of total Distribution Guarantees that it sometimes issues to acquire the international sales rights to feature films and television product from third parties. These totalled $3,697,000 at 30 June, 2003 and declined to $3,596,000 at 31 October 2003. New Distribution Guarantees issued in future are expected to be balanced by normal run-offs as those already outstanding are fully recouped from future sales. In this way the portfolio will be managed so the overall level of total Distribution Guarantees should remain reasonably stable.


This announcement is made pursuant to Listing Rule 3.1.


All enquiries should be directed to:

Mr Mikael Borglund, Managing Director, Beyond International Limited
Telephone 02 9437 2000 or email investor_relations@beyond.com.au


published: Thursday, October 30, 2003