Jungle Book Global Licensing Update - Further Momentum With Signing Of New Deals

HYDERABAD, India, June 1, 2010 - DQE, the animation, gaming, live action entertainment
production and distribution company, is pleased to announce that it has
signed a three year agreement with The Copyright Promotions Licensing Group
Limited ("CPLG") Europe's leading licensing agency, for licensing and
merchandising of 'The Jungle Book', DQE'S high-end 3D animation TV series.

CPLG will be responsible for product merchandising, publishing
and direct to retail strategy for multiple territories that include Italy,
Canton Ticino, San Marino, Vatican Cit, United Kingdom and Eire, Spain,
Portugal and Japan and act as DQE's licensing & merchandising agent for these
territories.

CPLG is Europe's leading licensing agency and has a comprehensive
portfolio averaging 2,000 licenses annually across all territories. CPLG
represents iconic brands in entertainment like Bob The Builder, Captain
America, Dino Squad, Dragon Hunter, Garfield, How to Train Your Dragon, Hulk,
Ice Age 3, Iron Man, Kung Fu Panda, Madagascar 2, Monsters VS Aliens, Marvel
Heroes & Marvel Comics, Peanuts, Shrek Forever After, SPIDERMAN, SpongeBob
Squarepants, The Simpsons and X-MEN & Marvel Extreme etc.

Their collaboration with DQE is expected to maximize licensing and
distribution revenue from the Jungle Book production.

In addition, DQE have signed a deal for 'fabric products' with
Belgium based N V Belltex. Under the terms of this agreement Belltex will
manufacture an array of products including tents, quilt cover sets,
pillowcases, fitted sheets, curtains, decoration cushions, beach towels,
ponchos, bathrobes, hand & bath towels, gloves, carpets, sleeping bags etc
with Jungle Book characters and elements.

This agreement was signed through DQE co production partners TF1
Enterprises, who act as their licensing & merchandising agents for France.

Belltex represent brands like BEN10, Dinosaur King, Family Guy, Gormiti,
Spider-Man (Spider-Sense Spider-Man), Pokèmon, Pet Alien, Little Princess,
Strawberry Shortcake, Smurfs, The Simpsons, Winx Club, World Wrestling
Entertainment (WWE) and others.

DQE has on date concluded multiple agreements for its
licensing and merchandising of The Jungle Book license. The licensees have
estimated a combined total of circa US$15m (INR 68.97 Crores) of total
revenue and minimum guarantees across these deals in the first retail cycle
of 5 years from the time of first broadcast of the TV series.

Tapaas Chakravarti Chairman & CEO of DQE Group commented:

"We have always believed that the 3D Jungle Book would become
a hugely popular television programme but for home entertainment, licensing,
merchandising and publishing its success will most likely exceed our
expectations.

We have successfully negotiated nine marquee licensing deals
worldwide and other publishing and merchandising negotiations are currently
ongoing. Though The Jungle Book' is a classical property the feature like
quality of this 3D TV series written by leading writers in UK and France is
working perfectly for contemporary licensing strategies.

We believe that our collaboration with CPLG as well as Belltex
will be mutually beneficial"

Katarina Dietrich, Chief Executive, CPLG commented:

"Copyright Promotions Licensing Group Ltd. is excited to work
with DQ Entertainment on Jungle Book in Italy, Spain, Portugal, UK and Japan
to put together a successful licensing and merchandising program. The
brilliant animation, fantastic character designs will be found on many
different consumer products. We are looking forward to a very successful
partnership"

Yves Vander Schelden of Beltex said:

" We are very happy to be part of the 'Jungle Book' adventure, as new
licensee for France, Benelux and GAS. We believe we will make a good business
with this well anchored brand, which is reviving with the new 3D animation.

    Media Contact :

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

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