Ethan Hawke and Julie Delpy are in final negotiations to star in "Bathory," which Bauer Martinez will finance, produce and distribute. Delpy will make her directorial debut on the picture, working from her own script about the legendary Elizabeth Bathory, who inspired many a vampire myth with sadistic rituals that included bathing in the blood of virgins.

Additionally, Bauer Martinez Distribution, the company's newly formed U.S. distribution arm, has finalized a multipicture production deal with Hayden and Tove Christensen's Forest Park Pictures. The deal initially runs for an 18-month period and will involve three to four productions in the $10 million-$40 million range.

The two developments cap a week of major announcements for the company, including the launch of the distribution arm and the production of a number of high-profile films set to fuel the new division.

The company has just pacted with heavyweight producer Scott Rudin for its next film, "I'm Not Your Woman," which will star Michelle Pfeiffer. Bauer then plans to shoot "The Flock," which Richard Gere is negotiating to star in and which Double Nickel Entertainment is producing with Bauer and Gibraltar.

The company will then focus on "Riders on the Storm," which John McTiernan is set to direct. BMD will release all of the films as well as several recent productions, including "The Groomsmen" with Edward Burns and Brittany Murphy and "Irish Jam" with Eddie Griffin.

Bauer chief Philippe Martinez attributes the recent growth to several factors, including relationships with such solid business partners as Alan Latham, Edge Films and CAA.

"We have been doing this since 1999 and have built up a solid track record," Martinez said. "Therefore when we decided to expand, we were able to find backing and partners. CAA has been instrumental in providing access to product."

Earlier this week, the company announced its new distribution team, which is headed up by Martin Barab, who explained the move into theatrical distribution: "The decision was based on the fact that we wanted to control our own destiny instead of giving away hundreds and thousands of dollars to the studios."

Martinez added: "Many distribution companies are run by people motivated by fear. Where we can make a big difference is that we are interested in the films and not just the marketing."

In terms of production, Martinez plans to cover both ends of the spectrum, including larger- and smaller-budgeted films. The company intends to have a solid presence in the U.K., where it derives much of its film financing and has a production base through production arm Lucky 7.

"The bottom line is that we want to make five big movies a year," he said. "We will also support some smaller indie films. We come from smaller movies and don't want to abandon our roots. We want to create a home for select talent."

Meanwhile, Martinez is keen to emphasize that the company is not just a financing and distribution entity but also a fully fledged production house. Martinez himself is a filmmaker with several directing credits to his name, including "Wake of Death" and "Citizen Verdict."

"I am very involved in the production in that I discuss every aspect of the devilment and casting," Martinez said. "We are not just a new financing entity."

"We are very excited and headed in the right direction," Barab said.