DQE.L Regulatory News (DQE)

DQ Entertainment International

("DQE" or the "Company")

JUNGLE BOOK GLOBAL LICENSING UPDATE

DQE, the animation, gaming, live action entertainment production and distribution company, is pleased to announce it has signed a three year agreement with The Copyright Promotions Licensing Group Limited ("CPLG") Europe's leading licensing agency, for licensing and merchandising of 'The Jungle Book', DQE'S high-end 3D animation TV series.

CPLG will be responsible for product merchandising, publishing, promotions and direct to retail strategy for multiple territories that include Italy, including Canton Ticino, San Marino, Vatican Cit, United Kingdom and Eire, Spain, Portugal and Japan. Under the terms of the deal CPLG will act as DQE's licensing & merchandising agent for these territories.

CPLG is one of the market leaders in licensing and their collaboration with DQE will provide additional opportunity to maximize licensing and distribution revenue from the Jungle Book production.

In addition, DQE have signed a second deal for 'fabric products' with Belgium based N V Belltex.

Under the terms of the agreement Belltex has been authorized to manufacture an array of products including tents, quilt cover sets, pillowcases, fitted sheets, curtains, decoration cushions, beach towels, ponchos, bathrobes, hand & bath towels, gloves, carpets, handkerchiefs, polar plaids, sleeping bags etc among a range of other products with Jungle Book characters and elements.

This agreement was signed through DQE co production partners TF1 Enterprises, who act as their licensing & merchandising agents for France.

DQE has on date concluded multiple agreements for its licensing and merchandising of The Jungle Book license, while the TV series is still in production. The licensees have estimated a combined total of circa US$15m (INR 68.97 Crores) of total revenue and minimum guarantees across these deals in the first retail cycle of 5 years from the time of first broadcast of the TV series.

Tapaas Chakravarti Chairman & CEO of DQE Group commented:

"We are delighted to continue to expand licensing and distribution opportunities for 'The Jungle Book'. We have always believed that the 3D Jungle Book would become a hugely popular television programme but for home entertainment, licensing, merchandising and publishing its success will most likely exceed our expectations. We have successfully negotiated nine marquee licensing deals worldwide with a combined revenue estimate of circa $15 million provided by the licensees.

Several other publishing and merchandising negotiations are currently ongoing and though TheJungle Book' is a classical property the feature like quality of this 3D TV series written by leading writers in United Kingdom and France is working perfectly for contemporary licensing strategies.

We believe that our collaboration with CPLG as well as Belltex will be mutually beneficial"

Katarina Dietrich, Chief Executive, CPLG commented:

"Copyright Promotions Licensing Group Ltd. is excited to work with DQ Entertainment on Jungle Book in Italy, Spain, Portugal, UK and Japan to put together a successful licensing and merchandising program. The brilliant animation, fantastic character designs will be found on many different consumer products. We are looking forward to a very successful partnership"

Yves Vander Schelden of Beltex said:

" We are very happy to be part of the 'Jungle Book' adventure, as new licensee for France, Benelux and GAS. We believe we will make a good business with this well anchored brand, which is reviving with the new 3D animation.

Enquiries:

Further Information:

About The Jungle Book:

The series tell stories of the man-cub 'Mowgli' raised in the Indian jungles by a pack of wolves. Drama, excitement and adventure mixed with a high element of comedy tell tales of how Mowgli lives and survives in the jungle, where his only companions are animals. His adventures reflect his daredevil, fearless, high-spirited and fun-loving escapades. He is helped by Baloo the wise bear, his best friend Bagheera the black panther and (sometimes!) mighty Kaa, the rock python. Mowgli learns to overcome adversity and make progress in his life by using his quick wit and natural curiosity, with his constantly optimistic outlook on life. This is very challenging for the little man-cub with a evil enemy like Shere Khan, the royal Bengal tiger.

Mowgli's adventures open out in the lush tropical forest of Seeonee amidst splendid Indian royal forts, temples, waterfalls and the Waingunga river. Throughout the series other characters from the Kipling stories add flavor to the drama, comedy and action, bringing out excellent animation and quality storytelling.

Trailer available for viewing: http://www.youtube.com/watch?v=B5pDCplIPp4

About CLPG:

CPLG founded in 1974 is Europe's leading licensing agency, with offices in seven major European cities. CPLG has a comprehensive portfolio of entertainment, design and sports rights averaging 2,000 licenses annually across all territories. CPLG was was acquired by the Cookie Jar Group, a Canada based global entertainment and education company In 2008.

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PLG represents some of the most exciting and iconic brands in entertainment like Bleach, Bob The Builder, Captain America, Dino Squad, Dragon Hunter, Garfield, How to Train Your Dragon, Hulk, Ice Age 3, Inspector Gadget, Iron Man, Kung Fu Panda, Madagascar 2, Monsters VS Aliens, Marvel Heroes & Marvel Comics, Peanuts, Shrek Forever After, SPIDERMAN, SpongeBob Squarepants, The Simpsons and X-MEN & Marvel Extreme among various other popular brands.

About Belltex:

N V Belltex is a well known licensee based out of Belgium. They represent various brands like BEN10, Dinosaur King, Family Guy, Gormiti, Spider-Man (Spider-Sense Spider-Man), Pokèmon, Pet Alien, Little Princess, Strawberry Shortcake, Smurfs, The Simpsons, Winx Club, World Wrestling Entertainment (WWE) among various others.

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. 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 has also 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. DQE is also producing a 3D animated stereoscopic feature film "The Prodigies" for Onyx Films and Fidelite Films, France.

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. With a workforce of approx 3500 permanent employees DQE has a global client - partner base of over 90 producers, distributors, broadcasters and licensors including Walt Disney Group, Universal Pictures, Nickelodeon Animation Studios Inc., Electronic Arts, Marvel Comics, American Greetings, , BBC Group, M6/ France TV Group / TF-1 - leading broadcasting and Distribution groups from France, ZDF TV and ZDF Enterprises - leading Distributors/ broadcaster and global distributor from Germany, ABC Australia, Al Jazeera - Arabic nations, Disney Channels - Asia, Cartoon Network Group and many more world-wide.