Co-production agreement

DQ Entertainment International ("DQE")

DQ Entertainment and The Hive Enterprises sign

Co-production agreement

DQE, the animation, gaming, live action entertainment production and distribution company, is pleased to announce the signing of a co-production agreement with UK based The Hive Enterprises Limited for production of an animated TV series.

"The Hive" will be a colourful new animated series for pre-school children featuring the Bee family - characters who are fairly self-explanatory and include Pappa Bee, Mamma Bee, Buzzbee and Rubee amongst others.

The Hive will be produced as a series of 78 episodes of 7 minutes each at a global budget of approximately £3.5 million GBP (INR 24 Crore). The series will be developed in high-end 3D CGI and is scheduled to start production imminently. Negotiations for global satellite broadcasting rights have also commenced with an agreement expected in the first half of 2010.

Tapaas Chakravarti Chairman & CEO of DQE Group said,

"This new alliance with The Hive Enterprises will successfully capitalize on the strong individual production, global distribution and business networking capabilities of both companies. This relationship has already produced The Pinky and Perky Show and we are delighted to be continuing this highly successful and creative alliance."

Camilla Deakin, Joint Managing Director of Lupus Films and Director of The Hive Enterprises added

"We initially met with Tapaas in our capacity as producers of The Pinky & Perky Show through Pinky & Perky Enterprises. We spent a very happy 2 years in collaboration with them and were extremely pleased with the results of their work on the series. Consequently they were the first people we thought of when we were looking for a partner to work with us on our new pre-school show The Hive. DQE's team are always hard-working, pleasant to deal with and conscientious about producing the best possible quality animation. We are looking forward to another successful team effort on this new show, which we are sure will go on to become a much loved ever-green property in the pre-school arena."

For further information, please contact:

About The Hive

The Hive is a colourful new animated series for pre-schoolers featuring the Bee family, who live together in Honeybee Hive. Pappa Bee, Mamma Bee, Buzzbee and Rubee are really just like any other family, except they are tiny, stripy and buzz around in the sky!

The Hive is about the everyday things that concern little children such as playing, being friendly, spending time with your family and finding out all about the world and how it works. And thanks to the Bee family's many friends, neighbours and relations, including Miss Ladybird, Katypillar, Willy the Wasp and Queen Bee, The Hive is always bustling with fun, adventure and lots of exciting things to see and do.

About Hive Enterprises

The Hive Enterprises is a rights holding company set up by some of the collaborators from The Pinky & Perky Show especially in order to produce a new pre-school CG series The Hive. David Willing, the creator of the show and Camilla Deakin, the producer of the show, are the directors of the company and other members of the team include Ruth Fielding, who was previously Producer of The Pinky & Perky Show, Steve O'Pray, who was previously Executive Producer of The Pinky & Perky Show and Ray Merritt, who was previously the Creative Director of The Pinky & Perky Show. The team enjoyed working together on their previous production so much that they decided to collaborate once again, this time with a show aimed at a younger audience. The Hive Enterprises has also appointed Bejuba Entertainment, run by children's TV specialist Tatiana Kober, to handle their TV and DVD sales worldwide and the newly formed Space Enterprises, headed up by Mark Hurry, to handle Licensing and Merchandising.

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. With a workforce of over 2800 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 Group / TF-1 - leading broadcasting and Distribution groups from France, ZDF TV and ZDF Enterprises - leading broadcaster and global distributor from Germany, ABC Australia, Al Jazeera - Arabic nations, Disney Channels - Asia, Cartoon Network Group 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 Club House, First and Second Season of Madagascar TV Series and now in Second Season and Fanboy for Nickelodeon, USA and is now co-producing properties like Little Prince and Little Nick with major international broadcasters and producers. DQE has a library of over 350 hours of international programs for distribution and licensing globally for TV, home entertainment, merchandising and publishing is on fast track.

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 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 recently 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. 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.

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.