DQ Entertainment International ("DQE" or the "Company"): DQE Boosts Global Licensing in Israel

HYDERABAD, India, September 30, 2010 - DQE, the global entertainment production and distribution
company, is pleased to announce licensing and merchandising agreements for
'The Jungle Book' in Israel. The agreements are with Osem Investments
Limited, an Israeli subsidiary of Nestle S.A. ("Nestle"), a food production
and distribution company and also the Burger Ranch franchise, a fast food
chain across Israel as introduced by D&C Israel ("D&C"), who are representing
DQE's Jungle Book franchise in Israel for merchandise including toys,
housewares, apparel, giftware, stationery, foods, beverages and furniture.
D&C will administer the deals with Nestle and Burger Ranch in Israel on
behalf of DQE.

The agreement with Nestle will see Jungle Book branded
merchandise and packaging appear across a variety of Nestle branded products.
The agreement also includes a specially commissioned sticker collection
incorporating the main four characters of the series (Mowgli, Baloo, Bageerah
and Sherkhan). These stickers will be distributed as a free additional insert
in up to 50,000 cereal multipacks of the Nestle brand, Honey Nut Cheerios.

The second agreement with Burger Ranch is for the licensing
and merchandising across all Burger Ranch franchises within Israel. Under the
terms of the agreement, Jungle Book related products will be available from
all Burger Ranch stores as either free promotional gifts or pre-selected
purchased items. As of 2010, the Burger Ranch chain operated 107 restaurants
with more than 1500 employees.

Products included in the launch include coin boxes, bull's
eyes, flying models, balls, keyboard stickers and mini rackets. 90,000 such
gifts at the cost of 2 Israeli Shekel (NIS) will be added as a gift to child
meals at Burger Ranch branches.

DQE's original production in hi-end 3D animation, 'The Jungle
Book', is being produced as a 52 episode animated series and a 60 minute TV
feature in co-production with international majors including TF1, Moonscoop,
and ZDF Group, and has already received a rapturous response with regards to
global licensing options.

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

"The Jungle Book as a brand has tremendous profile and
recognition worldwide and our licensing agreements with Nestle and D&C
endorse this fact. A number of similar agreements are currently under
negotiation as we look to develop new and multiple revenue streams for DQE.

"We are excited at the potential of our relationship with our two
new partners and the further development of our Jungle Book franchise."

Michal Laufer, D&C Merchandising general manager, said:

"The Israeli market gives Mowgli a bear hug! Even before the
series is broadcast we have 3 key licensing deals of 3 important companies
that have trusted the new Jungle Book series: Nestle - the worldwide food
company, Burgerranch - a local leading Hamburgers chain stores and Ahim Fried
- a local significant home textile company.

"We are looking to get more and more deals as soon as the TV
show will be on air."

Maya Shkolnik, cereal brand manager of Nestle Israel, said:

"We are very proud to be the first to cooperate with this spectacular
animation of the new Jungle Book. Mowgli is very beloved and a familiar
figure here, among parents and children. As soon as we saw the new brand, we
have felt that it will be absolutely right to connect between our products as
natural values of the basic experience. In October we go on a sale promotion:
every customer who will buy a package of 2 Honey Nuts Cheerios boxes will
receive an amazing sticker sheet of The Jungle Book characters. We are sure
that parents and children will be very happy to enjoy, play and have fun with
Mowgli and friends stickers!"

Lior Moyal, Director of marketing for Burger Ranch chain, said:

"Many generations of Israelis grew up on the wonderful stories of The
Jungle Book. In our efforts to give our young customers an extra experience
and values, we decided precisely on this generation of computer games and war
toys to explore the children to the wonderful characters of Mowgli and his
friends. We have no doubt that to the Burger Ranch kid's meal will be added a
fine flavour of old times with this beautiful series characters."

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 an evil enemy like Shere Khan, the royal Bengal
tiger, never far away.

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/watch?v=B5pDCplIPp4

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 400 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 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 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.

Company Web Site: www.dqentertainment.com

You Tube Channel: www.youtube.com/user/DQEnt

    Further Information:

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

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

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