Crest Animation Studio's US based subsidiary, RichCrest Animation (RCA) and Lions Gate Entertainment (LG) have announced a three-picture co-production and co-financing arrangement to produce three top quality, state-of-the-art animated feature films.

This marks Crest's foray into the theatrical segment. Till date only five studios in the world have so far produced CGI film for theatrical releases worldwide.

Speaking to Animation 'xpress, Crest CEO AK Madhavan stated,"This is a proud moment for India and the entire Indian animation industry as it is the first time that an Indian animation studio has entered into a 3 picture deal with one of the largest Independent distributors in the world"

The first film under the new agreement will be SYLVESTER AND THE MAGIC PEBBLE, based on the Caldecott Medal-winning story by the creator of the blockbuster SHREK. A second, currently untitled feature project is in development, and the third project will be identified in the near future.

As per the agreement, Lions Gate will distribute the three films and their derivative works (e.g. sequel, video games, television serials, merchandising) worldwide, except in India (which are held with RCA). RCA and LG would be equally sharing the cost of production as well as the profits. It is proposed that the entire CGI production of the three features will be carried out by RCA in conjunction with its Indian holding company, Crest Animation Studios Ltd.

The press release quotes Seemha Ramanna, Managing Director, Crest Animations Studios Ltd, as saying "This is a significant milestone for Crest and a pioneering feat for the Indian animation industry. This partnership with Lions Gate reflects confidence in Crest's ability to produce full-length feature films of world-class quality as well as our recognition of Lions Gate as a content leader in the family space and a superior distributor of quality theatrical releases. With this agreement, Crest will emerge as one of the few production houses in the world that can produce CGI feature films."

"There is tremendous growth potential for quality, CGI feature films in the family entertainment space. This agreement with a world-class partner is typical of the efficient financing for which we're known and allows us to develop, produce and distribute feature films of superior animation production quality within Lions Gate's financial model," said Lions Gate Family Entertainment Executive Vice President Ken Katsumoto.