Exhibit 16.2


July 27, 2002


Securities and Exchange Commission
Washington, D.C.  20549

Ladies and Gentlemen:

As noted in our letter dated June 12, 2002,  our  acceptance of  appointment  as
independent   auditors  for  Point.360  (the  "Company")  was  conditional  upon
successful  completion of our prospective  client  evaluation  procedures.  Upon
completion of these  procedures,  on July 26, 2002, we respectfully  declined to
accept appointment as Point.360's independent auditors. We have read Point.360's
statements  included  under Item 4 of its Form 8-K dated July 26,  2002,  and we
agree with the following Point.360's statements:

   |X|  On June 18, 2002, Point.360 (the "Company") reported that it had engaged
        KPMG LLP as its independent auditors for the fiscal year ending December
        31, 2002 and signed an engagement letter as of that date. The engagement
        letter  outlined  the terms of  service  with  KPMG's  acceptance  being
        subject to completion of its new client evaluation procedures.

   |X|  On July 26, 2002, KPMG informed the Company that KPMG declined to act as
        the Company's  independent  auditors.  There were no disagreements  with
        KPMG on any matters of accounting principles or practices;  nor had KPMG
        performed any audit or other services for the Company.

We are not in a position to agree or disagree with any of the other Point.360's
statements included under Item 4 of its Form 8-K dated July 26, 2002.


Very truly yours,

(Signed)
KPMG LLP