The uncertainty over the future of PolyGram Filmed Entertainment (PFE) is over, according to Universal Studios' president, Ron Meyer. After being very publicly up for sale, it is now off the market and will be fully integrated into Universal's international operations.

"After two months of determining the value that PFE brings to Universal, we have concluded that retaining PolyGram's international operations provides the strongest advantage," Meyer said on announcing the move.

PFE will continue to operate under the leadership of Stewart Till, and Meyer is "looking forward to expand this integral business over time". This means that the US domestic operations of the company are still under consideration.

PFE's international theatrical operations will run parallel to UIP, which will continue to release all Universal product outside North America. CIC Video will also operate alongside PFE and will continue distributing Universal, Paramount and DreamWorks product, with a decision on future video distribution outside of PolyGram companies under consideration. PolyGram has Stephen Frear's The Hi-Lo Country screening in competition on Friday 19 February. Mike Downey