DQ Entertainment and Gaumont-Alphanim Sign Production Agreement

HYDERABAD, India - DQ Entertainment plc (”DQE”), the AIM listed, India based animation, gaming and live action entertainment group, is pleased to announced that it has signed a co-production agreement with Gaumont-Alphanim, one of the leading animation and film producers in France, with an estimated production budget of EUR 6.9 million.

DQE, working alongside DQ Entertainment Ireland, a wholly owned subsidiary, will start work immediately on the co-production of a third series of ‘Galactik Football’, which follows two successful co-productions with Gaumont-Aplhanim - ‘Delta State’ and ‘Potatoes and Dragons’.

Three additional projects are also under discussion, including one live action television series to be produced by DQE.

DQE and Gaumont-Alphanim are pursuing a business model of raising the maximum production budget through broadcasting and pre-sales agreements, with all production projects completed within a 3 year window.

Tapaas Chakravarti, Chairman and CEO of DQE commented:

“This is the beginning of a new and exciting era with Gaumont-Alphanim, starting with Galactik Football 3. By combining production, distribution, licensing and global networking capabilities we believe today’s announcement is a significant strategic step for DQE but at minimal risk to our business model. Gaumont is virtually the oldest cinema and event group in [France] and enjoys an unchallenged reputation in our industry.”

Clement Calvet, CEO of Gauomont-Alphanim also commented:

“We want the best for Galactik Football and we are glad that DQE has agreed to join us. Together with DQE, I have no doubt that we’ll deliver a great show for kids all over the world premiering in June 2010 for the next World Cup.”

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 2,788 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 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’, the 100% home grown global production as a 52 episode animated series and a 60 minute TV feature. The other major co-production partners are ZDF Enterprises and ZDF Broadcasting - Germany, TF1 Group, France and Moonscoop, France. DQE is also developing and producing Lassie which will be a 26 x 22 minute CGI animated series, 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 have international sales representatives in Los Angeles, Paris and Tokyo.

Note

DQ Entertainment (International) Limited, a wholly owned Indian subsidiary of DQE, is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offer of its equity shares in India and has filed a draft red herring prospectus (”DRHP”) with the Securities and Exchange Board of India (”SEBI”). The DRHP is available on the website of SEBI at www.sebi.gov.in and on 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. Any potential investor should note that investment in equity shares involves a high degree of risk. For further details, potential investors should refer to the DRHP, which has been filed with SEBI including the section titled “Risk Factors”. This press release has been prepared for publication in India and the UK and may not be published or distributed in the United States of America and is not an offer or solicitation of an offer for sale of securities in the United States. The equity shares of DQE and DQ Entertainment (International) Limited have not been and will not be registered under the U.S. Securities Act of 1933, as amended or any state securities laws in the United States. This announcement does not constitute an offer of securities or sale in any jurisdiction, including the United States, and may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1993.

DQ Entertainment PLC Sumedha Saraogi +91-40-2355-3726/27 sumedha@dqentertainment.com Religare Hichens Harrison plc Vineeta Manchanda Tel: +44-20-7382-4662 Buchanan Communication Mark Edwards/ Jeremy Garcia / Miranda Higham Tel: +44-20-7466-5000 Blomfield Corporate Finance Limited A 100% subsidiary of Religare Hichens Harrison Plc Alan MacKenzie Peter Trevelyan-Clark Derek Crowhurst Tel: +44-20-7489-4500

Source: DQ Entertainment International

DQ Entertainment PLC, Sumedha Saraogi, +91-40-2355-3726/27, sumedha at dqentertainment.com; Religare Hichens Harrison plc, Vineeta Manchanda, Tel: +44-20-7382-4662; Buchanan Communication, Mark Edwards/ Jeremy Garcia / Miranda Higham, Tel: +44-20-7466-5000; Blomfield Corporate Finance Limited, A 100% subsidiary of Religare Hichens Harrison Plc, Alan MacKenzie, Peter Trevelyan-Clark, Derek Crowhurst, Tel: +44-20-7489-4500