DQE Signs UK Toy Merchandising Agreement

HYDERABAD, India, January 5, 2011 - DQE, the animation, gaming, live action entertainment production and
distribution company, today announces that it has entered into an exclusive
toy licensing agreement for DQE's 3D animated series The Jungle Book with
Mookie Toys Ltd ( Mookie ), a UK based company.

DQE's Jungle Book UK merchandising is represented in UK by Copyright
Promotions Licensing Group Ltd (CPLG), Europe's leading licensing agency.
Under the terms of the agreement through DQE's licensing agent CPLG, Mookie
has acquired the Toy licensing rights for "The Jungle Book" in the UK,
Republic of Ireland and the Channel Islands. This agreement allows Mookie to
sell Jungle Book toy merchandise including wheeled bicycles; tri-scooters;
tricycles; balance bikes; sit N rides; play balls, outdoor activity centres;
slides etc. DQE will receive a substantial amount in upfront payment as
minimum guarantee from this agreement that covers the outdoor play and ball
categories for a three year period.

Mookie is well placed to exploit the huge potential for Jungle Book toys
and have already created some impressive initial concepts. Mookie Toys is an
outdoor toy manufacturer & distributor for several well known brands such as
Peppa Pig, Noddy, Rupert Bear, Toy Story, Fire Man Sam, Ben 10, Mr. Men,
Postman Pat, Disney's Characters like Little Mermaid, Cars, Snow White,
Winnie the Pooh etc. Mookie will use multiple distribution channels for
retail including High Street, Mass Market, Independents & online.

Mookie Toys was established in 1987 and supplies all major accounts,
domestic and FOB from its Hong Kong office; Newton Enterprises. Its detailed
offer covers playballs, inflatable wave boards and pools, water pistols,
hoola hoops, catcherball and mini flip toss games, bowling and football sets,
trampolines and boxing gloves. Moreover, it also provides Swing ball products
such as tennis, volleyball, soccer and boxing sets.

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

"This agreement will open up a number of new verticals for maximising our
profits from The Jungle Book as we continue to expand licensing and
distribution opportunities. The 3D series has already become a hugely popular
television programme in countries where it has started airing. We remain
hugely optimistic that the licensing & merchandising of this iconic property
will gain further momentum during 2011.

"With the expertise Mookie has in toy manufacturing we believe that we
have associated with the right partner for manufacture of toys of this
classic property. The deal has great strategic significance as this validates
DQE's constant pursuit to reach audiences and markets."

Guy Orr, Director Mookie Toys, also commented:

"We are very excited to be partnering with CPLG and DQ Entertainment Ltd
on Jungle Book. Everyone is familiar with Rudyard Kipling's classic story and
here at Mookie we looking forward to creating innovative and fun products
inspired by this new series."

Vickie O'Malley, MD CPLG UK, added:

"Mookie's PD team have developed some wonderful concepts for outdoor,
wheeled toys and playballs which are a perfect fit to reflect for Jungle's
Book sense of adventure and excitement. We're absolutely delighted to have
them on board."

About DQE

DQE is one of the leading producers of animation, visual effects, game
art and entertainment content for the Indian as well as global media and
entertainment industry with a workforce of over 3500 permanent employees 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 450 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 in
production like Mysteries of 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.

    For further information:

    DQ Entertainment International

    Sumedha Saraogi
    sumedha@dqentertainment.com

    P R Vishnu
    vishnu@dqentertainment.com

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

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