DQE Signs European Footwear Licensing Agreement

HYDERABAD, India, August 24, 2010 - DQE, a leading animation, gaming live action entertainment and
distribution company, announces that it has entered into a merchandising
agreement with Off Road Ltd, a leading footwear manufacturer, to produce a
collection based on the animation from DQE's series, 'The Jungle Book'.

Under the terms of the agreement, Off Road Ltd has acquired
the rights to manufacture "Jungle Book Footwear" including: indoor slippers,
beach slippers, trainers, children shoes, rain boots and snow boots. Off Road
Ltd specialises in designing, manufacturing and selling shoes for European
brands and markets.

The collection will be designed and manufactured in China,
Vietnam and India and marketed by major French shoe retailers with more than
200 retail outlets across France and the Benelux region. In addition to
traditional retail outlets, Off Road will also distribute the products by
mail order, the Internet, as well as through hypermarket and supermarket
chains.

The agreement was signed through TF1 Enterprise France, DQE's
co-production partner and licensing and merchandising agent for the Jungle
Book in these regions.

As a brand, the Jungle Book has already generated recognition
worldwide and a number of similar agreements are currently under negotiation.
The present deal will provide further impetus to the licensing efforts by DQE
and the Group anticipates strong revenue growth via such strategic
partnerships going forwards.

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

"We are delighted to collaborate with Off Road Ltd for the
licensing and merchandising of Jungle Book footwear products for France and
Benelux. The Jungle Book with its modern 3D adaptation will work perfectly
for the licensing and merchandising markets and will be loved by children and
adults alike.

DQE plans to continue to drive value from our core brands
whilst selectively aligning ourselves with the best possible global
partners."

Description of 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
on the prowl.

Mowgli's adventures open out in the lush magnificent tropical
forest of Seeonee amidst splendid Indian royal forts, temples, waterfalls and
the Waingunga river. Throughout the series many species of animal characters
from the Kipling stories add flavour to the drama, comedy and action,
bringing out excellent animation and quality storytelling.

Company Web Site: www.dqentertainment.com

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

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.

    Contact

    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

Contact: 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