DQ Entertainment International ("DQE"): DQE Agrees Jungle Book Merchandising Agreement for Nordic and Eastern European Regions

HYDERABAD, India, September 27, 2010 - DQE, the entertainment production and distribution company, is
pleased to announce the appointment of Plus Licens AB ("Plus Licens"), one of
Sweden's leading licensing and merchandising agents, as their licensing
representatives for 'The Jungle Book'.

Plus Licens is the largest licensing company in Eastern Europe and the
Nordic countries, a market with more than 438 million consumers - more than
half of Europe's population. Plus Licens has over 30 years licensing
experience working alongside the world's most successful licensors and holds
the rights to popular animated properties like Dragon Ball, Elmo's World,
Felix the Cat, Global Grover, Naruto, One Piece, Peanuts and Play With Me
Sesame.

Under the terms of the agreement, Plus Licens will represent DQE on the
commercial exploitation of all Jungle Book merchandising and publishing
agreements in several countries including Sweden, Norway, Finland, Denmark,
Bulgaria, Czech Republic, Hungary, Poland, Russia and several other countries
in Eastern Europe.

The agreement is commercially significant to DQE with estimated potential
revenue in excess of a million dollars for the license term as estimated by
Plus Licens. Plus Licens intends to market The Jungle Book merchandise and
books to coincide with the TV broadcast of Jungle book series to begin early
next year as broadcast and distributed by ZDF TV & ZDF Enterprises, Germany.

Tapaas Chakravarti, Chairman & CEO of DQE Group, commented,

"As DQE continues to execute its strategy of capitalising on
licensing opportunities of our core global brands, we believe our partnership
with Plus Licens will maximise commercial opportunities in these regions.
Plus Licens have an impeccable track record stretching back over 30 years
coupled with tremendous market reach in the Nordic countries and over 30 East
European nations."

Louise Lindquist, New Business Director of Plus Licens AB, said: "To
quote the secretary of the Swedish Academy as they awarded Kipling the Nobel
Prize in Literature in 1907: 'In Sweden, as elsewhere, The Jungle Books are
much admired and beloved'. This, needless to say, still holds true today -
the Jungle Book stories have been read and loved by generations of children
in the Nordic countries as well as Central and Eastern Europe and has also
been gained popularity in modern adaptations like the successful musical
which has run for more than 14 years in Hungary. Plus Licens is proud to
work with the new Jungle Book TV series, a modern yet respectful adaptation
of a literary classic."

DESCRIPTION:

The series tells 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 an 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: www.youtube.com/user/DQEnt

Company Web Site : www.dqentertainment.com

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 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 Fanboy & Chum-chum for Nickelodeon, USA and is now co-producing
properties like The Little Prince and Little Nick with major international
broadcasters and producers. DQE has a library of over 500 hours of
international programs for distribution and licensing globally for TV, home
entertainment, merchandising and publishing.

DQE's 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 early 2011. 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 is also developing 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 has received several international awards including an
EMMY for Tutenstein TV series, 11 Emmy nominations, The UK Broadcast Awards
2010, Sichuan TV Festival International "Gold Panda" Awards, Cartoons on the
Bay awards, The E & Y Entrepreneur of the Year - 2009 India Award and many
others.

DQE's production facilities are based in Hyderabad 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.

    Contact:

    DQ Entertainment International               Tel: +91-40-2355-3726/27
    Sumedha Saraogi
    sumedha@dqentertainment.com

    DQ Entertainment International
    P R Vishnu
    vishnu@dqentertainment.com

DQ Entertainment International, Sumedha Saraogi, sumedha at dqentertainment.com; DQ Entertainment International, P R Vishnu, vishnu at dqentertainment.com; Tel: +91-40-2355-3726/27