DQ Entertainment International ("DQE" or the "Company"): DQE'S Jungle Book Makes Headway in Germany

HYDERABAD, India, September 21, 2010 - DQE, a leading global animation, gaming and live action,
entertainment production and distribution company, today announces a
licensing agreement for 'The Jungle Book' with the leading German licensee
Universal Trends GmbH ("Universal"), Germany along with co-production
partners ZDF Enterprises GmbH.

DQE has signed broadcasting, licensing and distribution
agreements for 'The Jungle Book' in more than 160 countries. Building on the
already considerable global success of this property, DQE and ZDF enterprises
have signed a three year agreement with Universal for licensing and
merchandising across Germany, Austria and Switzerland. As per the terms of
the agreement, Universal will have the rights for the manufacture and sale of
products such as figurines, puzzles, board games and outdoor toys including
surprise bags, 'gotchaballs', key rings, fabric figures and outdoor games
comprising of inflatables, sporting goods, beach toys and backpacks.

Universal has provided substantial minimum guarantee and the
deal has been signed for an estimated revenue potential of over Euro 2.0 mn
in the next 3 years starting from May/June 2011 based on 10% royalty to DQE.

Universal currently hold the rights to popular and iconic
properties including Pokemon, Disney, High School Musical, Hannah Montana,
Winnie the Pooh, Sponge Bob, Cars, Nintendo, Hello Kitty, Star Wars, Bakugan,
Transformers, and has now added DQE's 'Jungle Book' to their portfolio.

Key retailers in this region include TRU, Vedes and Muller.
Universal was founded in 1945 as Universal Cards. Since 1994, "Universal
cards" has been acting as a distributor for wholesale customers in Germany,
Austria and Switzerland. Amongst the clients of Universal are leading
companies from the classic toy trade, the collectors' market, corporate
retail and wholesale trade.

Tapaas Chakravarti Chairman & CEO of DQE Group commented:

"The Jungle Book as a brand has drawn tremendous equity and
global recognition and our licensing agreement with Universal is further
testimony to this fact. We are delighted to have Universal represent 'The
Jungle Book' in Germany, and are confident they will do justice to this brand
for monetisation through an interesting lineup of products that will delight
consumers.

Universal has a proven track record and DQE are confident that
we couldn't have picked a better licensing partner for 'The Jungle Book' in
Germany, Austria and Switzerland. I hope this is the start of a long lasting
and mutually beneficial collaboration for all the partners concerned.

We have a number of similar agreements currently under
negotiation which will provide us incremental and upstream revenues from
further exploitation of our IP's."

Sylvia Brucker, Director Merchandising, Sales, Merchandising
and Co-productions, ZDF Enterprises GmbH said:

"We are very pleased to have inked this deal with Universal
Trends. The company is a well-established and renowned partner in
merchandising high-caliber brands. We are convinced that the worldwide
popular characters of 'The Jungle Book' will come to new life in the creative
merchandising ideas of Universal Trends."

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 100% 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 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. Some of the
recent recognitions have been at 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
distributor/broadcaster and global distributor from Germany, ABC Australia,
Al Jazeera - Arabic nations, Disney Channels - Asia, Cartoon Network Group
and many more worldwide.

    Contact:

    DQ Entertainment International
    Sumedha Saraogi
    sumedha@dqentertainment.com

    P.R. Vishnu
    vishnu@dqentertainment.com

    Tel: +91-40-2355-3726/27

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