Entertainment company Alliance Atlantis Communications Inc. is expected to announce today a strategic alliance with TV-Loonland AG in Germany.

The partnership, which involves production, distribution, merchandising and Internet commitments, is worth about $110-million in revenue over three years.

"For us it is an important deal, but a big priority for us is to grow our kids and animation business," said Michael MacMillan, chairman and chief executive officer of the Toronto-based company.

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Specifically, Alliance's children's division and animated film maker TV-Loonland have entered into a three-year production agreement to finance and distribute up to nine TV series. During the first year, the two companies will produce The Famous Jett Jackson III, My Best Friend is an Alien II and the new animated series Yvon of the Yukon.

Alliance will also give TV-Loonland the European rights to certain existing children's television programs from the Alliance library for a fee of about $20-million.

Alliance's class B shares closed yesterday on the Toronto Stock Exchange at $20.95, down 5 cents.