Montreal: Malofilm Distribution has signed exclusive distribution agreements for Canada with Norstar Releasing and International Keystone Entertainment of Vancouver.

The deal with Toronto-based Norstar covers home video rights for 23 feature film titles, French and English, for a five-year period.

The agreement with Keystone covers Canadian distribution rights in all media for French and English feature films produced by the company over the next two years.

Andy Myers, Norstar vice-president and general manager, distribution, says the company signed with Malofilm ‘because they were the most aggressive, with the best offer. We have worked with them before and (their offer) was precisely what we were after.’

Norstar had an earlier agreement with C/FP Distribution for the home video market in Canada.

Keystone’s production arm was previously known as Entertainment Securities. Its most recent productions include such action thrillers and dramas as Double Cross, Killer and Dreamman.

Earlier this year, Entertainment Securities was rolled into Keystone, a former mining shell operation listed on the Vancouver Stock Exchange. The new entity, based in Vancouver, is headed by president and ceo Lyn Vince.

Keystone Films, based in Malibu, is headed by president Robert Vince. Principal shareholders include both Robert and Lyn Vince, brother Bill Vince and Michael Strange. According to a preliminary public offering prospectus on Keystone, the company plans to move its head office to Montreal.

Keystone intends to produce eight movies a year, says Robert Vince.

Norstar is active in all media, releasing five or six of its own titles in theaters annually, says Myers.

He says the company does not have exclusive output deals with either major or mid-sized distributors in the u.s., but instead relies on product from independent American and international production companies.

Among the Norstar titles optioned to Malofilm are Jungle Ground, a $2.5 million feature film from director Don Allen now in production in Toronto, Camilla, The Hawk, The Trial, Breaking Point, Red Scorpion II and Roman Polanski’s Bitter Moon, released in theaters in March.

Norstar productions include the highly successful Prom Night franchise, Cold Sweat, which will be seen on the USA Network in August, and the 1993 film Boulevard starring Lou Diamond Phillips, which was sold to Live Entertainment in the u.s.

Peter Simpson is president and ceo of parent company Norstar Entertainment and Linda Grinbaum is president of Norstar International, the exporter arm.

To date, Malofilm’s distribution activity has relied heavily on home video sales, but this is changing gradually, says Stephen Takacsy, Malofilm vice-president, finance. In the first six months ending March 31, parent company Malofilm Communications reported revenues of $14 million, with 70% or $10 million coming from its home video activity.

The company expects its theatrical business to increase following a recent output deal with Samuel Goldwyn giving it exclusive distribution rights to all Goldwyn product in Canada. Goldwyn product had been distributed in Canada by Alliance Releasing, which has a new output/coproduction agreement with Miramax in the u.s.