DQE.L Regulatory News (DQE)

DQ Entertainment PLC ("DQE")

DQE GLOBAL LICENSING AND DISTRIBUTION ON FAST TRACK

DQE, the animation, gaming and live action production and distribution company, is pleased to announce multiple deals for the licensing and merchandising of 'The Jungle Book' series. DQE's original production in hi-end 3D, 'The Jungle Book', produced as a 52 episode animated series and a 60 minute TV feature in co-production with international majors including TF1 and Moonscoop, France and ZDF Group, Germany, has already received an encouraging response globally on licensing options.

Two major licensing contracts for merchandising have been awarded in France, Belgium and Luxembourg in collaboration with its French co-production partner TF1 Enterprises, Paris, France. These two agreements have been signed with School Pack, Paris for manufacturing and sale of 'back-to-school' products (including school bags, packs and other school related items).

D'arpeje SA, Paris has been authorised to manufacture outdoor products such as tents, balls, inflatables, punching bags, gloves, garden equipment, tyres and accessories and indoor and outdoor items like plastic chairs and tables among a range of other products with Jungle Book characters and themes.

After securing the previously announced exclusive broadcasting agreement for Jungle Book with NOGA TV, Israel, licensing opportunities have been developed and a major merchandizing deal has been signed with "Ahim Fried Limited, Israel along with D & C TV Limited, Israel. This involves the manufacture and sale of a variety of bedroom items for children branded with Jungle Book characters (including quilts, pillows, blankets, bed linen, towels and other items).

The three deals are estimated by the licencees to generate around USD 3 million within the first three years of exploitation after the release of 'The Jungle Book' TV series and 'The Jungle Book' feature at the beginning of 2011.

Tapaas Chakravarti Chairman & CEO of DQE Group commented:

"Jungle Book is a truly iconic brand and we are delighted with the incredible response the animated series and featurette has generated from a licensing and branding perspective. Our licensing agreements with TF1 Enterprises, Paris, France, D & C TV Limited, Israel, Ahim Fried Limited, Israel, School Pack, Paris and D'arpeje SA, Paris for Merchandising, is testimony to this fact. A number of similar agreements are currently under negotiation and have opened up a number of new revenue streams for DQE."

Hubert Taieb, Deputy General Manager of TF1 Entreprises said:

"We are delighted to confirm our collaboration with DQ Entertainment for the development of Jungle Book merchandising products in French speaking European countries and Benelux. TF1 Licences is very pleased to develop a major licensing program for such an iconic brand. The amazing new graphic design and the notorious story of this new 3D series, soon to be broadcast on TF1 has already seduced major partners in France."

D & C Merchandising General Manager Michal Laufer -"We are very excited to have the opportunity to be involved with DQ Entertainment, on this wonderful production of The Jungle Book. We are confident that, the series will be a TV and licensing success in the world and also in Israel. We believe that The Jungle Book is a classical property and with its modern 3D adaptation will work perfectly in the Israeli licensing market, while its universal appeal will ensure it is a huge success. We are sure that this collaboration of D & C Merchandising and DQE will be long lasting and mutually profitable relation, and we are honoured to develop licensing products of such a strong brand. We are sure that The Jungle Book will be one of the major properties in the coming years"

Fried General Manager Mr. Avi Shayeviccommented: "We are happy to bring back Mowgli and Baloo in bed linen ranges throughout Israel. I am sure the Jungle Book elements will not only be loved by kids but by older age groups too."

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 About DQE

DQE is one of the leading producers of animation, visual effects, game art and live action entertainment content for the global media and entertainment industry. With a workforce of over 2800 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 Group / TF-1 - leading broadcasting and Distribution groups from France, ZDF TV and ZDF Enterprises - leading broadcaster and global distributor from Germany, ABC Australia, Al Jazeera - Arabic nations, Disney Channels - Asia, Cartoon Network Group and many more world-wide.

DQE has produced/co-produced and distributed iconic brands such as Iron Man - the first 3D animated TV series, Twisted Whiskers, Mikido, Casper, Pinky & Perky, second season of Large Family, third season of Mickey Mouse Club House, First and Second Season of Madagascar TV Series and now in Second Season and Fanboy for Nickelodeon, USA and is now co-producing properties like Little Prince and Little Nick with major international broadcasters and producers. DQE has a library of over 350 hours of international programs for distribution and licensing globally for TV, home entertainment, merchandising and publishing is on fast track.

DQE's 100% home grown production in hi-end 3D, 'The Jungle Book' is in production as a 52 episode animated series and a 60 minute TV feature in co-production with international majors including TF1 and Moonscoop , France, ZDF Group, Germany and is to be released world-wide in 2010. Toomai-The Elephant Boy which is a live action TV series is in development in co-operation with international broadcasters, while several Indian IPs like Mysteries & Feluda, Omkar, Balkand I, II and III with international broadcasters have had a successful run.

DQE recently announced the development of a series of animated short films for television in collaboration with French production companies Method Animation and MK2. DQE, Method Animation and MK2 announced the production and worldwide distribution and exploitation of an animated version of 104 six-minute episodes inspired by the legendary film icon Charlie Chaplin's Hollywood films. With a global production budget of approximately Euro 8 million, the first series will be developed in colour creating a timeless atmosphere and a unique look, blending early 20th century with present time, allowing for younger generations to identify with the Charlie Chaplin character.

DQE has received recognition and awards at several national and international forums fostering creativity and excellence. Some of the recent recognitions have been at the Ernst & Young, Entrepreneur of the Year - 2009 India Awards, The UK Broadcast Awards 2010, Sichuan TV Festival International "Gold Panda" Awards, The Emmy Award, administered by the National Academy of Television Arts & Sciences for Tutenstein TV series co-produced by DQE and several others.

DQE's production facilities are based in Hyderabad, Mumbai and Kolkata and it has international sales representatives in Los Angeles, Paris and Tokyo.

DISCLAIMER

DQ Entertainment (International) Ltd is proposing, subject to market conditions and other considerations, a public issue of the equity shares and has filed the Red Herring Prospectus with Registrar of Companies, Andhra Pradesh ("ROC"). The Red Herring Prospectus will be available on the website of SEBI at www.sebi.gov.in and the website of the book running lead manager at www.sbicaps.com.

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The Equity Shares have not been and will not be registered under the US Securities Act of 1933 ("the Securities Act") or any state securities laws in the United States and may not be issued or sold within the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

Any potential investor should note that investment in equity shares involves a high degree of risk. For details, see the section titled "Risk Factors" of the Red Herring Prospectus, which has been filed with the ROC.

About DQE

DQE is a leading animation, gaming and entertainment production and global distribution group engaged in production, co-production and original IP development with a workforce of 3500+ 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 - the first 3D animated TV series, Twisted Whiskers, Mikido, Casper, Pinky & Perky, second season of Large Family, third season of Mickey Mouse Clubhouse and is now producing properties like Little Prince and Little Nicolas. DQE has a library of over 350 hours of international programs for distribution.

DQE is also developing and producing '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 on 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 Tokyo.