Neal Edelstein was born in Winnetka, Illinois, USA. He graduated from the New Trier High School. He began his film career in Los Angeles, California in the early 1990s. In 1997, he produced David Lynch's segment in the French film Lumiere and Company, shot with the original Lumiere brothers's camera. After completion of the film, Edelstein and Lynch became partners in The Picture Factory, where Edelstein produced The Straight Story and Mulholland Drive, as well as worked with Lynch to conceive and launch DavidLynch.com.

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