DQE.L Regulatory News (DQE)

DQ Entertainment plc

('DQE', the 'Company' or the 'Group')

June Update

DQ Entertainment plc (AIM: DQE), a leading global animation, gaming, live action, entertainment production and distribution company is pleased to announce the following project update:

"The Jungle Book", CGI animated series now has over 100 licensees worldwide in key categories of publishing, gaming, digital, apparel, accessories, home furnishings, games, puzzles, Health and Beauty aids, confectionary, party products, seasonal products and more.

SMC Entertainment Group, Inc. (SMC), licensing agent and rights owner for 'The Jungle Book' for North America, and Sun-Mate Corporation, the global toy manufacturer along with DQ Entertainment International, producer and global rights owner of 'The Jungle Book' new CGI animated TV series have secured best-in-class merchandising partners: Hunter Leisure, Australia; Flash Toys in Latin America; Haka, New Zealand; Prima Toys in South Africa; MC Entertainment for Benelux; Scanditoys in Scandinavia; and Hububa Clip in Israel.

·; In the Middle East, a direct-to-retail toy programme is being instigated at Toys R Us with end cap display, TV monitor support, promotions and giveaways across all stores.

·; In Australia, The Jungle Book toys will be carried at Toys R Us, Target, and Toy World.

·; In South Africa, The Jungle Book toys will be carried at Toys R Us, Shop Rite, and all other key retailers.

·; In Israel, The Jungle Book toys will be carried at Toys R Us and retail partners in the specialty and drug store trade channels.

·; Key retailers in Scandinavia will be carrying The Jungle Book toys.

·; In the United States at e-commerce retailers, the merchandising range will be available at Amazon.com, Walmart.com, ToysRUs.com, BabiesRUs.com, Target.com, Sears.com, Kmart.com, Kohls.com, BarnesandNoble.com, Wayfair.com, and others.

·; Mowgli, Baloo and the rest of the Jungle Crew will come to life with a 'Quick Service Restaurant' Promotion by Burger King across 14,000 restaurants worldwide which has started in the UK & USA in June2013 to be followed by Latin America, Europe and Middle East.

·; The Jungle Book 60' TV feature is available in the Redbox rental catalogue and topping the popularity charts being the #1 family film viewed in Canada and #4 in the U.S. Red Box the popular DVD rental site in North America with 34.5% market share has 42,000 kiosks at more than 34,000 locations and specializes in the rental of DVDs, Blu-ray Discs, and video games via automated retail kiosks.The Jungle Book TV feature is also available on Amazon Instant Video and Net Flix for rent or purchase.

The first season of The Jungle Book is now broadcast in over 165 countries worldwide, on top-tier channels like ZDF Germany, the UK's BBC, TF1 France, RAI 2 Italy, TV3 Spain, Noga TV Israel, ABC Australia, Channel B Indonesia, EBS Korea, TVO Canada, Televisa Mexico and Disney Channels across Asia, Latin America and the United States.

More recently The Jungle Book has been acquired for broadcast on Univison USA for broadcast in USA in Spanish Language and is set to gather new fans in Latin America with broadcast on Televisa - Mexico, Globosat - Brazil and Canal Encuentro - Argentina.

Global Home Entertainment partners include NBC Universal for the UK, France, Australia, New Zealand and Japan, Phase 4 Films for North America and Sony Pictures Entertainment among others.

Season 2 is in production and will soon be ready for broadcast all over the world. The following co-production deals have already been signed:

·; The Jungle Book Season 2

52 x 11 3D TV series coproduced with ZDF Group (Germany), TF1 TV (France), Moonscoop.

·; Jungle Book Christmas Special

CGI TV Feature coproduced with ZDF TV (Germany) and Moonscoop (France)

Meanwhile, progress is also being made with the New Adventures of Peter Pan. The popularity of this series is evident from the first ratings on Sky Italia ,DEA Kids, ABC Australia and Telequebec.

Also currently under development is DQ Entertainment's latest production, Raz & Benny. Created by Simon Hodgkiss of Rockkiss DME, UK and to be produced in CGI, Foothill Entertainment, in conjunction with DQ Entertainment, is looking for co-production and pre-sale opportunities.

For further information, please contact:

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