DQE.L Regulatory News (DQE)

For Immediate Release 4 February 2011

DQ Entertainment plc ("DQE")

DQ E and ZDF Enterprises to co-produce second series of the Jungle Book

Budget Euro 9m

DQ E, the global entertainment production and distribution company, today announces the signing of a coproduction agreement with ZDF Enterprises, Germany, for a second season of the 3D HD animated series Jungle Book, 52 episodes of 11 minutes each.

ZDF Enterprises, together with German Pubcaster ZDF, has taken the lead as chief coproduction partner of the second season, budgeted at over 9 million euros. It will distribute the new adventures of Mowgli and his friends in more than 60 countries throughout Europe and Latin America.

The first season has been an unqualified success and has been picked up by a number of marquee networks including : BBC (UK), TF1 (France), ABC (Australia), TVO (Canada), ZDF (Germany), JCCTV (Middle East), Noga TV (Israel), Channel B (Indonesia), EBS (Korea) and many others covering over 160 countries worldwide. It will also be aired on multiple Disney channels in major parts of the world.

It is expected that the second season will further boost the merchandising and licensing of this property, which already has many deals agreed worldwide for toys, apparel, board games, outdoor action games, beach toys, food items and more.

Based on stories from Rudyard Kipling's immortal classic, the JUNGLE BOOK series features tales of wit, friendship, courage and loyalty with the man-cub Mowgli and his friends in the dense Indian jungle.

Dr. Alexander Coridass, President and CEO at ZDF Enterprises, praises the cooperation with DQ Entertainment: "Ever since we started cooperating with DQ Entertainment, we've benefited from the exemplary efficiency of our Indian partners. We particularly appreciate DQE's global outlook on production issues. They are very successful in transposing universally beloved stories into hit animation series. This is just one of the reasons we at ZDF Enterprises did not hesitate to come aboard to co-produce not only the second season of Jungle Book , but also the new 3D HD animated series Peter Pan and Lassie."

Tapaas Chakravarti, Chairman & CEO of DQ Entertainment says: "The second season of Jungle Book was a simple decision after the tremendous success of the first season and the inherent demand by the global broadcasting community. Jungle Book already has a tremendous fan following and has created the need to see more and more of Mowgli and his jungle friends by the kids. We are confident that the second season will also be a tremendous commercial success. It will be followed by a TV Movie special, a Christmas special, a Halloween special and many other spin-offs. The partnership with ZDF is symbiotic in the sense that we are producing several other projects with them."

About DQE

DQE is one of the leading producers of animation, visual effects, game art and entertainment content for the global media and entertainment industry with a workforce of over 3500 permanent employees and a global client - partner base of over 90 producers, distributors, broadcasters and licensors including Walt Disney Television Animation, Nickelodeon Animation Studios Inc., Electronic Arts, Marvel Comics, American Greetings, NBC-Universal, BBC Group, M6/ France TV/ TF-1 Broadcasting groups from France, ZDF Germany and many more world-wide.

DQE has produced/co-produced and distributed iconic brands such as Iron Man (3D animated TV series, now in season 2) Twisted Whiskers, Mikido, Casper, Pinky & Perky, second season of Large Family, Three seasons of Mickey Mouse Clubhouse and is now producing properties like Little Prince, Little Nicolas and Charlie Chaplin. DQE has a library of over 450 hours of international programs for distribution. DQE has also developed and produced 'The Jungle Book' as a 52 episode animated series and a 60 minute TV feature, Toomai-The Elephant Boy which is a live action TV series as well as Indian IPs which are in production like Mysteries of Feluda, and Omkar. DQE's production facilities are based in Hyderabad, Mumbai and Kolkata and it has international sales representatives in Los Angeles, Paris and London.