$285 Million Fund to Fully Finance Theatrical and Direct-to-Video Asian
                               Themed Titles

    NEW YORK, Aug. 6 /PRNewswire/ -- The Weinstein Company (TWC), the
multi- media enterprise launched by Bob and Harvey Weinstein, today
announced the launch of an innovative $285 million fund that will fully
finance the development, production, acquisition, marketing and
distribution of a large slate of Asian themed films over the next six
years. Worldwide distribution for all films under the deal will be
controlled by The Weinstein Company and will include DVD distribution in
the United States under TWC's agreement with Genius Products. The
announcement was made today by Bob and Harvey Weinstein, co-chairmen of
TWC.
    The fund will include a diverse mix of theatrical and direct-to-video
titles, which will mostly be filmed in Asia and will explore the region's
unique culture and showcase the talents of leading Asian filmmakers. TWC
anticipates producing or acquiring a total of 21 theatrical titles and 10
direct-to-video titles during the term for the fund.
    The fund, structured and placed by Goldman, Sachs & Co., will provide
up to $285 million in capital for the development, production, acquisition,
marketing and distribution for all qualifying Asian-themed films produced
or acquired by TWC over the next 6 years. The fund will be capitalized with
senior debt financing, mezzanine financing and equity financing. A
consortium of banks led and co-arranged by Comerica Bank will provide the
senior debt financing. Continental Entertainment Capital and Israel
Discount Bank of New York (IDB Bank(R)) are also participating in the
senior debt facility. The mezzanine and equity financing will be provided
by Citigroup Global Markets Inc. and PMA Capital Management Limited on
behalf of investment funds it manages, among others. TWC will also be an
equity investor in the fund. The fund will finance 100% of both production
or acquisition costs and prints and advertising (P&A) costs.
    Some of the titles that will be included in the fund include a live
action version of "Mulan," which depicts the epic journey of the Chinese
legend Hua Mulan; "The Seven Samurai," a contemporary remake of the 1956
Academy Awards(R) nominated story about a poor village besieged by
marauding bandits and defended by seven samurai; the action epic "Shanghai"
about an American who returns to Japanese occupied Shanghai during the
Second World War to discover his friend's death and tries to unravel the
mysteries behind it; an untitled Tony Jaa project; TWC's recently announced
deal with "24" producer Tony Krantz and "Infernal Affairs" co-director
Andrew Lau for a trio of Hong Kong action films, to be shot in English; and
"Forbidden Kingdom" which marks the first-ever onscreen pairing of martial
arts superstars Jackie Chan and Jet Li and is directed by Rob Minkoff. TWC
is co-releasing "Forbidden Kingdom" with Lionsgate in the US, UK, Spain,
France and Latin America.
    For more than 25 years, Bob and Harvey Weinstein have been at the
forefront of bringing Asian cinema to the worldwide film marketplace and
have released four of the top eight all-time grossing Asian foreign
language films in North America including "Hero," "Iron Monkey," "The
Protector," and "Shall We Dance?" During that time, the popularity of Asian
films has grown tremendously and Asian films have emerged as a significant
force around the globe. Two important elements which have fueled this
growth are the existence of large markets in various Asian countries for
Asian films, which enables increased local investment in such films, and a
production cost structure in Asia that is significantly lower than that for
U.S. or European produced films, permitting Asian films to feature enhanced
production values at comparatively lower budgets. TWC intends to focus on
utilizing these advantages to deliver Asian films that offer significant
production value with a Western sensibility, and are therefore aimed both
at performing well in the Asian territories of their origin and appealing
to Western audiences.
    The Weinstein Company, which already has an office in Hong Kong, plans
to ramp up its Asian business and increase its profile in Asia. The company
has recently hired experienced Asian film executive David Lee as executive
vice president of Asian Operations to oversee the creative aspects of the
Asian Film Fund. Lee has vast experience in the production of Asian themed
film and extensive relationships in Asia among the business and
entertainment communities. Lee will report to co-president of production
Michael Cole and Bob and Harvey Weinstein. Prior to joining the Weinstein
Company, Lee advised some of the most influential media companies in Asia
in various capacities. He played a key role in structuring Forbidden
Kingdom as one of the highest profile official U.S. and co-productions to
date.
    In 2006, TWC created a new label called Dragon Dynasty, which showcases
cutting-edge presentations of significant classic and contemporary Asian
Cinema for the home entertainment market. Combining elevated production
values with dynamic creative execution, each Dragon Dynasty product extends
a compelling invitation to experience the world's most exciting action
genre like never before. Dragon Dynasty feature legendary Asian filmmakers
such as John Woo, Yuen Woo-ping and Corey Yuen Kwai and star some of Asia's
hottest leading actors like Jackie Chan, Jet Li, Stephen Chow, Donnie Yen,
Michelle Yeoh and Sammo Hung. Through its agreement with TWC, Genius
Products will distribute the Asian genre titles in the fund on home
entertainment under TWC's Dragon Dynasty label.
    "Bob and I are thrilled to share the immense talent and beautiful
stories of Asian cinema with audiences around the world. We have been
planning to launch an Asian Film Fund and increase our Asian film business
since the early planning stages of The Weinstein Company and are really
excited to be able to start working on all the exciting projects we have
planned. The film world has become increasingly global and through this
fund, we will be able to work on daring projects with the region's most
creative filmmakers and movie stars and partner with some of Asia's most
dynamic talent - both behind and in front of the camera."
    A team of investors will manage the fund, with TWC serving as the
Managing Member with authority over all film-related activities including
development, creative, marketing, and distribution.
    Goldman, Sachs & Co. acted as exclusive placement agent for the Asia
Film Fund transaction. Goldman, Sachs & Co. acted as exclusive arranger for
the issuance of mezzanine debt and equity, and Comerica and Goldman, Sachs
& Co. acted as joint lead arrangers and joint lead bookrunners on the
senior debt financing.
    The agreement was orchestrated by Larry Madden, executive vice
president and CFO, and Andy Kim, senior vice president of finance and
business development, at TWC. The law firm O'Melveny & Myers LLP served as
TWC's outside counsel on the deal. Paul, Weiss, Rifkind, Wharton & Garrison
LLP advised Goldman Sachs and Liner Yankelevitz Sunshine & Regenstreif LLP
advised Comerica.
    About The Weinstein Company
    Throughout their careers, Bob and Harvey Weinstein have been involved
with some of the most highly acclaimed and financially successful Asian
films including The Protector, the record box office hit "Hero," the
Academy Award nominee "Farewell my Concubine," "Iron Monkey," the animated
hit "Princess Mononoke," the Japanese version of "Shall we Dance," Jet Li's
"The Master," "Twin Warriors," "The Enforcer," "The Legend of the
Swordsman," "The Legend," "The Legend II," and "Fist of Legend," Shaolin
Soccer," starring Stephen Chow, "The Accidental Spy," "The Legend of
Drunken Master," "Twin Dragons," "Operation Condor," "Supercop 1 and 2,"
all starring Jackie Chan, along with "Temptress Moon," and "Chungking
Express," among many others.
    The Weinstein Company is also home to the largest library of Asian
films in North America including a special collection of 50 classic Shaw
Brothers' movies. TWC's Asian titles are released through the company's
Dragon Dynasty label. Quentin Tarantino, who is well recognized for his
passionate interest and broad knowledge of Asian cinema, is actively
working with the Weinsteins on all aspects of brand development for Dragon
Dynasty. Recent titles released under the Dragon Dynasty label include
"Kill Zone," "Police Story," "Seven Swords," "The Protector," "Police Story
2," "Infernal Affairs 2," "Infernal Affairs 3," the "Infernal Affairs"
trilogy box set and the 2 Disc Ultimate Edition of "Born to Fight."
    Last year, The Weinstein Company formed a Latin American film fund with
Eduardo Costantini Jr., to finance the production and acquisition of Latin
American films. The first picture to be released will be "Elite Squad" from
Academy Award nominated Writer Braulio Mantovani ("City of God") and
Director Jose Padilla ("Bus 174"). The Weinsteins have been involved with
many highly acclaimed Latin American projects in the past including the
Academy Award winning "Frida," the four time Academy Award nominee "City of
God," which played for 75 consecutive weeks in theaters in the US, the
Golden Globe nominated "Behind the Sun," the Golden Globe nominated "Like
Water for Chocolate," and "Secuestro Express", the fast and furious
Venezuelan drama starring Mia Maestro.

Link to this page: