Co-Production Deal

DQ Entertainment International ("DQE")

DQE and The Hive Enterprises sign agreement with Playhouse Disney

DQ Entertainment is pleased to announce that the new CGI pre-school series "The Hive", 26 x 21' (or 78 x 7') being co-produced by DQE has resulted in The Hive Enterprises signing a broadcast deal with Playhouse Disney for a record number of 150 countries. The series is due to be aired on Playhouse Disney channels worldwide from early 2011. It will premiere this autumn in the UK on GMTV's pre-school Fluffy Club weekend strand.

'The Hive' is being co-produced by The Hive Enterprises, DQ Entertainment, Lupus Films and Monumental Productions with a production budget of 3.5m pounds. DQ Entertainment and Lupus Films previously worked together on the 2008 remake of the 1950s children's classic The Pinky And Perky Show for the BBC and France 3. Bejuba Entertainment has come on board as the distributor for this pre-school series, and Space Enterprises are handling all the Licensing and Merchandising for the show.

The Disney deal, negotiated by The Hive Enterprises, lead producers of this show, and Bejuba Entertainment, covers regions including France, Germany, Italy, Spain, Korea, Japan and India as well as South East Asia, Latin America, Scandinavia, Central and Eastern Europe, the Middle East and Africa.

This series follows the fortunes of the friendly Bee family who live together in the Hive. Storylines explore themes of family, working together to solve problems, being part of a diverse community and caring for the environment.

Said Tapaas Chakravarti, Chairman and CEO of DQ Entertainment,

"This acquisition by Disney is an affirmation of the strength of this property and our partnership with The Hive Enterprises. We are indeed delighted to be co-producers on The Hive and on yet another wonderful production backed by Play House Disney for 150 countries."

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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 approx 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 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 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. 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.