03/13/02 (Santa Monica, CA) - Threshold Entertainment today announced its acquisition of Ninja Scroll from leading Japanese anime studio MADHOUSE. The producers of the $4 billion Mortal Kombat franchise have tagged the property as its next blockbuster martial arts franchise. Threshold plans to produce Ninja Scroll in all media including television, live stage tours, video games, music and more. The multimedia and intellectual property management giant is currently developing the $60 million effects laden live-action samurai feature film based on the 1994 blockbuster anime movie.

Created by award-winning action director Yoshiaki KAWAJIRI (Vampire Hunter D, Demon City), Ninja Scroll is considered the yardstick by which all other martial arts sword-fighting action anime is measured. Set in feudal Japan, the sword and sorcery epic follows the adventures of Jubei, a ninja mercenary, who is thrust into the middle of a war when the entire population of a village is wiped out by a mysterious plague. A tragic love story ensues with Jubei's reluctant rescue of a beautiful and cursed ninja girl as fate brings them together to fight a war with the eight devils of Kimon and overthrow the Shogun government.

"We're always looking to acquire extraordinary properties with tremendous growth potential. Ninja Scroll has all the elements for a multi billion dollar entertainment franchise," said Larry Kasanoff, chairman and CEO of Threshold Entertainment. "It's wild, sexy, innovative and one of the coolest martial arts brands in the world."

Threshold revolutionized the feature film world when it became the first company to successfully translate a videogame property, Mortal Kombat, into a $4 billion blockbuster feature film franchise. The company has produced the brand in multiple media, including two blockbuster feature films, a TV series and Radio City Music Hall Live Stage show. It is now the most recognized martial arts brand and the fifth largest entertainment property in the world, just behind Star Wars and Batman.

"Though anime was originally born in America, it has had its own evolution in Japan and become a part of Japanese culture. Given my long career running one of the most progressive anime production companies in Japan, I was very moved when Threshold made their first offer on Ninja Scroll. I felt anime had finally evolved into something American audiences would find entertaining. I am thrilled to see anime become a mutual language to bridge our cultures and work toward the same goals," said Masao MARUYAMA San, founder and President of MADHOUSE.

Threshold Entertainment CIO, Joshua Wexler represented his company in the transaction. Hikaru Sasahara of Digital Manga, Inc. and Robert K. Yasui of Yasui & Carroll negotiated the deal on behalf of MADHOUSE.

Threshold Entertainment's groundbreaking worldwide digital animation and effects subsidiary, Threshold Digital Research Labs (TDRL), will supervise the film's visual FX. Threshold's other subsidiary, Threshold.TV will create and manage the online presence of the brand at www.ninjascroll.com.

Kasanoff will produce with Threshold's Alison Savitch, George Johnsen and Joshua Wexler. Hikaru Sasahara will serve as co-producer.