Cuddles and the Kids, produced and directed by Balwyn resident Carolyn Pethick, won third prize in the children's entertainment category at the Worldfest International Film Festival in Texas.

 Ms. Pethick, 38, used about $90,000 of her own money to hire professionals to make the video, which was up against 60 films in the children's category from 52 countries.

 She hopes the video's offshore recognition will "open doors" and encourage Australian television or business executives to see it as a good investment.

police force to make the educational film about fire, road and water safety, different family combinations and Australian native animals.

 Watching videos with Molly, she realised there were no Australian films that were educational and fun. Yet children were mad about overseas videos that featured heroes such as Barney the Dinosaur.

 So she created Cuddles, a koala.

 Ms. Pethick said her video was overlooked by the television industry.