Global Investments
International Limited

We're now taking the biggest step yet for the fund: we're making the fund's first investment into PME, our production partner in Hollywood. Our commitment with them is for 21 pictures over 7 years but the first slice of investment buys an equity stake in PME. Therefore for only a small up-front commitment this week (a token $ 100 k), the Movie Portfolio Fund is taking ownership of a 5% stake in PME, valued at $7.5 million. This is on account of further business, but is a big show of faith from both parties, and means that the fund is now sitting pretty with real assets on board. The next 5% will come in when we've contributed $7.5 million.

Also, the MPF gets a Director position with PME, which I'll be taking up on behalf of the fund.

As regards PME, as we move forward we aim to bring you more "movie news" and other info that you can give to clients. We're committed to doing a PR launch with PME in Hollywood early next year to announce the MPF and this will be good for business. We've now got one of the top financial PR
agencies in London on the job pre-marketing the fund in that market as well.

PME had 2 movies out in 2002, Big Trouble and Like Mike. Like Mike did around $55 million in the US alone and is released in Europe in early 2003 - we'll be co-ordinating some MPF PR with PME movie releases as they come out. PME now has 4 movies in development with DreamWorks, Disney,
Paramount and Fox. As these move into casting we'll let you know who's in them so that you can broadcast to your clients - these will all be high-profile movies.