Co-production Agreement

DQ Entertainment PLC ("DQE")

DQE and B-Channel announce co-production agreements

DQE, the entertainment production and distribution company, today announces the signing of two equity and distribution co-production agreements for The Jungle Book, a 3D TV series and The New Adventures of Peter Pan a 3D stereoscopic TV series with PT Metropolitan Televisindo ("B-Channel"), Indonesia.

Under the terms of the agreements, B-channel will contribute towards the global budget of €9.2m for The Jungle Book TV series, as well as towards a global budget of €10.0m for the 3D stereoscopic TV series The New Adventures of Peter Pan.

B-Channel has been granted the broadcasting rights for free TV, free VOD, IPTV and home video distribution for Indonesia. They will further be entitled to a royalty against DQE's distribution revenues.

Tapaas Chakravarti, CEO & Chairman DQE commented: 

"Our strategy of producing and distributing iconic content has received further validation and financial backing through B-Channel's commitment to both The Jungle Book and Peter Pan. The Indonesian market is one of the fastest growing consumers of animated content and merchandising in the ASEAN region and B-channel's reach is unparalleled."

Sofia Koswara , B CHANNEL CEO commented:

"B CHANNEL is delighted and honoured to be given the opportunity to partner with DQ Entertainment. This partnership will allow B-Channel to develop the Jungle Book and Peter Pan franchises in Indonesia, one of the world's largest and growing emerging markets. The values of family, friendship, loyalty, forgiveness, unity in diversity espoused by these properties holds true to the values that B-Channel embraces. It is our privilege to be given the opportunity to inspire millions of children through the incredible work by DQ Entertainment's Jungle Book and Peter Pan."Further Information:

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's 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 worldwide in 2010.

During the Mipcom Festival in Cannes on 3 October 2010, Peter Pan was successfully launched by DQE (see www.dqentertainment.com) alongside co-production equity and editorial partnership with ZDF Group, Germany and Method Animation, France supported by France Televisions, De Agostini Group, Italy and ATV, Turkey.

The first broadcast of The Jungle Book on TF1 in France occurred on 25th October and has received good ratings. The Jungle Book has already been sold in multiple countries around the world for broadcasting, licensing and distribution and is co-produced by DQE with international companies including TF1 and Moonscoop, France, ZDF Group, Germany. Rights to broadcast the series have also been acquired by ABC Australia, Noga TV Israel, Disney-Asia, Tele Quebec - Canada, BBC-UK and JCCTV-Middle East, TVO-Canada, Thai PBS, TV-12 Singapore, NBC Universal, TIGA (Thailand) and Play Records (Israel) for home video and several other licensees for worldwide merchandising.

Toomai-The Elephant Boy is a live action TV series which is currently being developed 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 has also 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. DQE is also producing a 3D animated stereoscopic feature film "The Prodigies" for Onyx Films and Fidelite Films, France.

DQE has received recognition and awards at several national and international forums fostering creativity and excellence. Recent recognitions include 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 Hyderaba and Kolkata and it has international sales representatives in Los Angeles, Paris and Tokyo. With a workforce of approximately 3,500 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 broadcasting and global distributors from Germany, ABC Australia, Al Jazeera - Arabic nations, Disney Channels - Asia, Cartoon Network Group and many more worldwide.