Peter Jackson to Produce The Hobbit and Sequel

LOS ANGELES, December 19: Peter Jackson, along with the
chiefs of Metro-Goldwyn-Mayer (MGM) Studios and New Line Cinema, have announced
plans to produce two films based on J.R.R. Tolkien’s novel The Hobbit.

Under the agreement, MGM and New Line will co-finance and
co-distribute the two films, with New Line holding the rights for North America
and MGM distributing internationally. Peter Jackson and Fran Walsh will serve
as executive producers, and New Line will manage the production.

The two films—The Hobbit and its sequel—are scheduled to be shot simultaneously, with
pre-production beginning as soon as possible. Principle photography is
tentatively set for 2009, and The Hobbit release is slated for 2010 with the sequel arriving the following
year.

The deal also ends a feud between New Line and Jackson, who
sued the company in 2005. Following complaints about his share of the profits,
Jackson requested an audit of New Line’s revenues for the Lord of the Rings (LOTR),
and then claimed the company stonewalled the accountants. As part of the agreement
for The Hobbit, the two parties
have settled all litigation relating to the LOTR trilogy.

The Oscar-winning LOTR
trilogy grossed nearly $3 billion worldwide at the box office.

"Peter Jackson has proven himself as the filmmaker who
can bring the extraordinary imagination of Tolkien to life and we
full-heartedly agree with the fans worldwide who know he should be making The
Hobbit," said Harry Sloan, MGM’s
chairman and CEO. "Now that we are all in agreement on The
Hobbit, we can focus on assembling the production
team that will capture this phenomenal tale on film."

Bob Shaye, New Line’s co-chairman and co-CEO, commented:
"We are very pleased we have been able to resolve our differences, and
that Peter and Fran will be actively and creatively involved with The Hobbit movies. We know they will bring the same passion,
care and talent to these films that they so ably accomplished with The
Lord of the Rings trilogy."

"Peter is a visionary filmmaker, and he broke new
ground with The Lord of the Rings," added Michael Lynne, New Line’s
co-chairman and co-CEO. "We’re delighted he’s back for The Hobbit films and that the Tolkien saga will continue with
his imprint. We greatly appreciate the efforts of Harry Sloan, who has been
instrumental in helping us reach our new accord."

"I’m very pleased that we’ve been able to put our
differences behind us, so that we may begin a new chapter with our old friends
at New Line,” said Jackson. “The Lord
of the Rings is a legacy we proudly share
with Bob and Michael, and together, we share that legacy with millions of loyal
fans all over the world. We are delighted to continue our journey through
Middle Earth. I also want to thank Harry Sloan and our new friends at MGM for
helping us find the common ground necessary to continue that journey."

—By Ned Berke