For the festival’s third edition, the Fastlicht auditorium is equipped with a professional screening room and award-winning Serbian director Emir Kusturica uses it for his master class. A number of Israeli talents break out at the graduation ceremony, directed by student Eytan Fox, and performed by Students who will later be known as Hahamishia Hakamerit (The Kameri Quintet). That same year, the judges present a poignant statement about the "death of the story," with one documentary film, one animated film and one non-narrative feature woven into the first five places.