Cinema City is to undergo an extensive refurbishment

The money will help finance an ambitious scheme to turn the cinema into a state-of-the-art facility with three screens.

The award of �2,559,728, after negotiations between the cinema and Arts Council, is �53,000 more than Cinema City asked for.

Cinema City board chairman Keith Bartlett said the funding put Norwich, Norfolk and the East of England on the map with a cinema which is a market leader in its field.

"This is excellent news, not just for Cinema City but for Norwich and its surrounding areas.

Cultural capital

"It will enable the cinema to deliver an exciting, enhanced screening programme with the first digital facility of its type outside London."

Andrea Stark, executive director of Arts Council England, East, said the cinema had been an important centre for independent and arthouse film in Norwich for 25 years.

"This award will allow filmgoers to look forward to the next 25 years as the cinema moves into its newly refurbished premises in early 2005."

City councillor Brian Watkins, executive member with responsibility for culture said the new development would further enhance Norwich's reputation as cultural capital of the East of England.

Building work is due to begin on 5 January. Cinema City will be showing films at The Norwich Playhouse from 9 January until the new cinema opens in 2005.