MONTREAL, Oct. 27 /CNW Telbec/ - Pierre Bernatchez, President of Image In Media Inc., a wholly owned subsidiary of Section Rouge MDedia Inc. (TSX Venture Exchange - SRO; "Section Rouge"), announced today that it has inked a co-production agreement with H2V Spring Inc. and DSP, Inc. for the production of the first movie inspired by one of the most popular toys of all time, Slinky(R). Under the Agreement, the Company will start immediately working on finding partners and on the completion of the financing of the movie. The Company becomes a 50% partner for the exploitation of all rights from digital to film, television and merchandising rights based on the Slinky(R) movie and derived projects on all media. "We have been negotiating for some time to participate in the development of this classic property. We believe that the combination of our expertise in financial packaging and distribution combined with the creative expertise of Henrique Vera-Villanueva of H2V Spring will result in a new array of products based on Slinky(R)," said Pierre Bernatchez, also COO of Section Rouge. "Our first priority is to develop and finance the movie, we will be meeting with several potential partners starting at the upcoming AFM in Los Angeles at the beginning of November to set the foundations to enhance brand equity," he added. "Working with Image and Media is a privilege. I'm excited to share this fantastic adventure with the whole team; and having the possibility and responsibility of creatively taking Slinky into an all around entertainment property is an honour" said Henrique Vera-Villanueva. "The challenge so far has been to go beyond the obvious in order to produce a film with soul that will reach past, present and future audiences. Those toys that are part of our collective memory and that offer such a creative potential, as Slinky(R) does are very rare. We're happy to say that after a lot of work we are ready to move ahead with this wonderful property". Vera-Villanueva's partner Al Lowenheim, of DSP, Inc. said: "Slinky(R) is magical, special and a true part of our culture -- everyone grew up with a Slinky(R). Image in Media and H2V Spring will give birth to a brand-new family of Slinky(R) characters and stories, bringing the animated world of Slinky(R) adventures -- and the special Slinky(R) magic -- to the next generation." Slinky(R) Trivia In 1943, Richard James, a naval engineer experimenting with tension springs, invented one of the greatest toys ever. During the experiment, one of the springs fell to the floor and began to "walk." James took the spring home to his wife, Betty, and asked her if she thought it was something they could pursue. Betty had a vision for a toy and scoured the dictionary, looking for an appropriate name. She came across the word "Slinky," a Swedish word meaning stealthy, sleek and sinuous. The Slinky(R) debuted at Gimbels Department Store in Philadelphia, Pennsylvania in 1945. Both Betty and Richard were sceptical about how the Slinky(R) toy would sell. All their doubts were put to rest when all 400 Slinkys(R) for sale were purchased in 90 minutes. As a result, toy history was made. Since then, over three hundred million Slinkys(R) have been sold worldwide. In 1999, the U.S. Postal Service issued a postage stamp for Slinky(R) celebrating the 100 American icons of the last Century. About Section Rouge Media and Image in Media Section Rouge (TSX Venture Exchange - SRO) is an integrated entertainment company which specializes in both publishing and electronic content production and distribution. Its publications division publishes 30 titles regularly (magazines and games). Through its wholly-owned subsidiary, Image in Media, Section Rouge develops, finances, produces and distributes cross-media products for the worldwide marketplace. Image In Media's integrated approach combines services and expertise in production management, marketing and distribution of products on all formats. Image offers to its growing network of independent content producers and distribution partners, via its production and financing services, the possibility to create profitably for the worldwide marketplace while building the Image In Media's catalogue of rights. About H2V Entertainment and H2V Spring H2V Entertainment, the parent company of H2V Spring, aims at creating high-quality and innovative content around three key areas: (1) "Trendy" and "Latin" flavoured content; (2) "Kids; and (3) Personal well-being. H2V Spring targets North American children by leveraging existing brands, toys and publications with untapped potential in the multimedia arena. The H2V companies form an integrated entertainment group with day to day activities in Canada, U.S., Spain and Latin America. The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. %SEDAR: 00008697EF