DQ Entertainment Joins Forces With Method Animation, France and MK2, France to Produce Series of Animated Short Films Inspired by Charlie Chaplin

HYDERABAD, India, January 8 - DQE, the Animation, Gaming, Live action production and global
distribution Group listed in AIM, London, which recently filed its Draft Red
Herring Prospectus with the regulators in India for approval for listing in
India, is pleased to announce 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.

(Photo:
www.newscom.com/cgi-bin/prnh/20100108/373185 )

DQE and Method Animation are committed to preserving the sense
of humour and the emotional values present in all of Charlie Chaplin's 70
films, all the while bringing out the quirky, burlesque and comic tone of the
character he created.

With a global production budget of approximately Euro 8
million, the first series will be developed in colour creating a timeless
atmosphere and a unique look, blending early 20th century with present time,
allowing for younger generations to identify with the Charlie Chaplin
character. In keeping with the spirit of Chaplin, the short episodes will be
presented without dialogue, giving enough space for the full scope of the
famous character's talents in pantomime. Completing the picture, putting
particular emphasis on the choice of music and the sound design, will add to
the laughter and emotion of the adventures of the legendary tramp.

Tapaas Chakravarti, Chairman & CEO of DQ Entertainment
(International) Limited and DQ Entertainment Plc said, "This is history in
the making as the partnership with MK2 and our own long term co-production
partners Method Animation, Paris, will bring the legendary entertainer
Charlie Chaplin back to life in a fantastic 'Animated Avatar'. The 3
companies will keep the legend of Charlie Chaplin alive and these large
number of short films in hi-end 3D Animation will delight the 21st century
kids and the families again as they will witness the legendary entertainer in
his new Avatar."

Aton Soumache, President of Method Animation adds "It is an
enormous honour for us to be allowed to work with as legendary and mythical a
character as Charlie Chaplin. The adaptation of the Charlie Chaplin character
into an animated series is an exciting challenge and an incredible adventure.
Our wish is to present a series created from Chaplin's world, ultimately
allowing for children to discover one of the greatest icons of film history
and at the same time enticing parents to rediscover the comic genius of
Chaplin. The entire series will be produced in stereoscopic 3D bringing forth
a fully immersed visual and emotional experience.

Nathanael Karmitz, President of the board of directors at MK2,
confirms that "Having followed the worldwide theatrical, DVD and television
distribution of the films for years, we are proud to announce this project
alongside partners whose proven skills in producing outstanding animated
series while maintaining a respectful approach to the rights holders are
widely known. We are confident that this next step in the promotion of
Chaplin's legacy will reach a greater audience and introduce the greatest
international star of modern cinema to younger generations. The series
represent an introduction to Chaplin's world as well as a rediscovery of his
body of work."

Description:

Charlie Chaplin was a comic genius and a pioneer in movie
making. Chaplin began his journey on the road to immortality when he created
his most famous character in the movie '' The Tramp '' (1915). Of all of his
characters, the Tramp is the most universally recognized and beloved. He is
earnest without being pathetic, pure yet imperfect, an unmistakable winner
despite his constant failures. As a filmmaker, Chaplin was able to make a
statement without offending or being preachy - The Great Dictator and Modern
Times are great examples of this ability. Among his well known films are The
Immigrant (1917), The Gold Rush (1925), City Lights (1931), Modern Times
(1936), The Great Dictator (1940), and 'The Circus', for which he received an
Academy Award in 1928. 'A King in New York' (1957), was released in America
20 years later, and his final film 'A Countess from Hong Kong' (1967),
starred Marlon Brando and Sophia Loren.

Charlie Chaplin made 81 films in a filmmaking lifetime that
began in 1914 and ended in 1967. In 1972 he returned to Hollywood to claim a
special Oscar honoring his lifetime contributions to movies. He was named
Knight Commander of the British Empire in 1975. He passed away on December
25, 1977.

The man might be gone but his movies; especially his silent
movies shall live forever. About Chaplin the famed critic James Agee wrote,
"the finest pantomime, the deepest emotion, the richest and most poignant
poetry were in Chaplin's work." The noted film scholar, Andrew Sarris, said,
"the single most important artist produced by the cinema, certainly it's most
extraordinary performer, and probably still its most universal icon."

Closer home, in the small town of Adipur in Northwest India,
Charlie Chaplin is treated as god ! It is the unlikely home of the world's
largest population of Charlie Chaplin impersonators. The 'Charlie Circle' of
Adipur embraces businessmen, shopkeepers, a doctor who prescribes Chaplin
movies for medicinal purposes, teachers, engineers, students and a
three-year-old pre-schooler. They all share a passion for the silent film
star of the early 1900s, with his twirling cane, wobbly walk and agitated
eyebrows….The legend lives on…

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 3500+(2788 permanent employees and 712
freelancers and trainees) in an expansion mode, 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 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
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'as a 52
episode animated series and a 60 minute TV feature, Toomai-The Elephant Boy
which is a live action TV series as well as Indian IPs which are on
production like Mysteries and Feluda, and Omkar.

DQE's production facilities are based in Hyderabad, Mumbai and Kolkata
and it has international sales representatives in Los Angeles, Paris and
Tokyo.

About Method Animation:

Method Animation is one of the top producers of 3D-CGI
animation series in Europe. As a multi-award winning animation concept and
content creation company, Method Animation produces in-house innovative and
ambitious concepts of 3D-CGI animation series for a large number of
international broadcasters including Nickelodeon, BBC, ITV, France
Televisions, M6, ABC Australia among others. The company has also developed
series of adaptations of renowned intellectual properties, either for or in
collaboration with major partners, for example Iron Man (in coproduction with
Marvel), Pinky & Perky (currently broadcast on the BBC) and Little Nick
(co-production with M6 Studio). Among its most recent projects Method is now
in production on new adventures of The Little Prince.

About mk2:

MK2, a key player in the international movie industry. Founded
in 1974 by Marin Karmitz, MK2 is an independent firm, entirely owned by his
family. The group is now run by Nathanael Karmitz, one of his sons. MK2
started with a single movie theater in Paris and the group own now 10
theaters and 58 screens. The group strives to defend its commitment to
quality art-house cinema and creates a link between cinema and different
types of artistic expression. For over 30 years, MK2 presents its own
production in the most prestigious international festivals and exports all
over the world many films by confirmed French directors such as Claude
Chabrol, Jean-Luc Godard, Alain Resnais, Jacques Doillon, Olivier Assayas,
Abdelatif Kechiche as well as famous respected international directors like
Krzysztof Kieslowski, Abbas Kiarostami, Gus van Sant, Michael Haneke…
Nowadays, the MK2 group includes every branch of the movie industry:
production, theatrical distribution in France, international sales, TV
production, DVD publishing, movie theaters, restaurants and shops.

A few figures concerning the mk2 group:

    - A library of over 500 international titles sold to
      distributors and TV channels worldwide, including Chaplin, Truffaut,
      Kieslowski, Chabrol, Kiarostami...

    - 1st independent group in France, 3rd theatrical network in
      Paris

    - 10 movie theaters in Paris and 58 screens

    - More than 100 awards in Cannes, Berlin, Venice, Oscars,
      Golden Globes, Montreal, Sundance

DISCLAIMER

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 and the website of the book running lead
manager.

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.

    Media Contact :

    DQ Entertainment Limited
    Sumedha Saraogi
    +91-40-2355-3726/27 or
    sumedha@dqentertainment.com

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Media Contact : DQ Entertainment Limited, Sumedha Saraogi, +91-40-2355-3726/27 or sumedha at dqentertainment.com