DQ Entertainment International ("DQE"): Mowgli Swings to Israel

HYDERABAD, India, October 27, 2010 - DQ Entertainment, the entertainment production and distribution company
today announces the signing of a home video distribution deal for the 3D
animated TV series "The Jungle Book" by Play Records Marketing & Distribution
Ltd ("Play Records"), Israel.

Under the terms of the agreement Play Records has been awarded the Home
Video distribution rights for the 52, 11 minute TV series of 'The Jungle
Book' in Israel over a period of three years. DQE will receive a minimum
guarantee as upfront payment for the license and will also be entitled to a
royalty on future sales during the license period.

The Jungle Book has already been sold in multiple countries around the
world for broadcasting, licensing and distribution. This is the first time
DQE has entered the strategically important home video distribution market in
Israel . The Home Video distribution market in Israel has steadily increased
its output and is increasingly embracing digital animated content. Play
Records is a leading home video distributor in this region and already holds
image rights for other popular digital brands.

DQE has previously announced a broadcasting deal with Noga Communication
for The Jungle Book in Israel.

Tapaas Chakravarti Chairman & CEO of DQE commented, "Play Records are
leaders in home video distribution market in Israel and it is only logical
for us to associate with them for an iconic and classic property like The
Jungle Book. This deal falls perfectly in line with our global plans and is
strategically very important for us since it will pave the way for more
revenue opportunities in this region.

"We believe that this is the beginning of a long lasting and mutually
beneficial collaboration with Play Records."

Description:

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 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 flavour to the drama, comedy and action, bringing out excellent
animation and quality storytelling.

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 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 worldwide in 2010.

Toomai-The Elephant Boy is a live action TV series which is
currently being developed 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. Recent
recognitions include 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 approximately 3,500 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
broadcasting and global distributors from Germany, ABC Australia, Al Jazeera
- Arabic nations, Disney Channels - Asia, Cartoon Network Group and many more
worldwide.

    Further Information:

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

    DQ Entertainment International
    P R Vishnu
    Tel: +91-40-2355-3726/27
    vishnu@dqentertainment.com

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