DQE.L Regulatory News (DQE)

DQ Entertainment PLC

("DQE" or the "Group")

DQE SIGNS UK TOY MERCHANDISING AGREEMENT

DQE, the animation, gaming, live action entertainment production and distribution company, today announces that it has entered into an exclusive toy licensing agreement for DQE's 3D animated series The jungle book with Mookie Toys Ltd ( Mookie ), a UK based company.

DQE's Jungle Book UK merchandising is represented in UK by Copyright Promotions Licensing Group Ltd (CPLG), Europe's leading licensing agency. Under the terms of the agreement through DQE's licensing agent CPLG, Mookie has acquired the Toy licensing rights for "The Jungle Book" in the UK, Republic of Ireland and the Channel Islands. This agreement allows Mookie to sell Jungle Book toy merchandise including wheeled bicycles; tri-scooters; tricycles; balance bikes; sit N rides; play balls, outdoor activity centres; slides etc. DQE will receive a substantial amount in upfront payment as minimum guarantee from this agreement that covers the outdoor play and ball categories for a three year period.

Mookie is well placed to exploit the huge potential for Jungle Book toys and have already created some impressive initial concepts. Mookie Toys is an outdoor toy manufacturer & distributor for several well known brands such as Peppa Pig, Noddy, Rupert Bear, Toy Story, Fire Man Sam, Ben 10, Mr. Men, Postman Pat, Disney's Characters like Little mermaid, cars, Snow white, Winnie the pooh etc. Mookie will use multiple distribution channels for retail including High Street, Mass Market, Independents & online.

Mookie Toys was established in 1987 and supplies all major accounts, domestic and FOB from its Hong Kong office; Newton Enterprises. Its detailed offer covers playballs, inflatable wave boards and pools, water pistols, hoola hoops, catcherball and mini flip toss games, bowling and football sets, trampolines and boxing gloves. Moreover, it also provides Swing ball products such as tennis, volleyball, soccer and boxing sets.

Tapaas Chakravarti Chairman & CEO of DQE Group commented:

"This agreement will open up a number of new verticals for maximising our profits from The Jungle Book as we continue to expand licensing and distribution opportunities. The 3D series has already become a hugely popular television programme in countries that have started airing. We remains hugely optimistic that the licensing & merchandising of this iconic property will gain further momentum during 2011.

With the expertise Mookie has in toy manufacturing we believe that we have associated with the right partner for manufacture of toys of this classic property. The deal has great strategic significance as this validates DQE's constant pursuit to reach audiences and markets"

Guy Orr, Director Mookie Toys also commented:

"We are very excited to be partnering with CPLG and DQ Entertainment Ltd on Jungle Book. Everyone is familiar with Rudyard Kipling's classic story and here at Mookie we looking forward to creating innovative and fun products inspired by this new series".

Vickie O'Malley, MD CPLG UK added:

"Mookie's PD team have developed some wonderful concepts for outdoor, wheeled toys and playballs which are a perfect fit to reflect for Jungle's Book sense of adventure and excitement. We're absolutely delighted to have them on board.

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About DQE

DQE is one of the leading producers of animation, visual effects, game art and entertainment content for the Indian as well as 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 - 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 450 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 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 Tokyo.