DQE and ZDF Enterprises sign new distribution deal

For immediate release 7 June 2011

DQ Entertainment plc

("DQE" or the "Group")

DQE and ZDF Enterprises sign new distribution deal

DQ Entertainment, the global entertainment production and distribution company today announces the signing of a new agreement with ZDF Enterprises ("ZDF"), for a new 3D stereoscopic HD TV series named "5 & IT" as part of a packaged multi million euro deal signed in Hyderabad, India. 

This agreement is in accordance with ZDF's objective to develop, produce and distribute quality original programming and DQE's objective to bring classical and iconic properties to life. "5 & IT" is a series of fantasy adventures for children aged 6 to 10 and is based on the famous book by Edith Nesbit written in the early part of the last century. The story has already successfully appeared in live action cinema and TV in Europe.

Under the terms of the agreement, ZDF will act as distributor for the "5 & IT" TV series being produced at a global budget of €9.2 million. ZDF will hold the distribution rights in 64 countries including Western and Eastern Europe (excluding French speaking Europe, the UK and Ireland), South Africa and Latin America. DQE is currently in discussions with leading broadcasters worldwide for the TV broadcasting rights.

Tapaas Chakravarti, CEO & Chairman DQE "The production of "5 & IT" in 3D stereoscopic animation has again proved DQE's capability in producing world class intellectual properties while expanding our business. We believe "5 & IT" will also go on to be a huge success like of our previous productions such as the "Jungle Book" and "Peter Pan" and will open various other revenue streams for exploitation.

ZDF and DQE have partnered in other international projects and this association has grown in strength with immense synergy between the partners. We hope to work with them in many other quality productions in the future."

Fred Burcksen, Vice president Sales, Merchandising and Co-productions ZDF Enterprises stressed the synergy of the partnership between DQ and ZDF Enterprises. "Our cooperation with DQ on the "Jungle Book", "Peter Pan" and "Lassie" proves to be very effective. Being DQ's partner again on "5 & IT" is a natural next step in evolving this partnership and in ensuring that quality children programming is being produced and successfully brought to broad audiences worldwide"

About DQE

DQE is one of the leading producers of animation, visual effects, game art and entertainment content for the global media and entertainment industry with a workforce of over 3,500 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 (3D animated TV series, now in season 2) Twisted Whiskers, Mikido, Casper, Pinky & Perky, second season of Large Family, Three seasons of Mickey Mouse Clubhouse and is now producing properties like Little Prince, Little Nicolas and Charlie Chaplin. DQE has a library of over 450 hours of international programs for distribution. DQE has also developed and produced '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 London.

About "5 & IT"

"5 & IT" follows the adventures of five children after they unearth and befriend a bizarre little sand fairy, a Psammead - The 'IT' by their Uncle's beachfront mansion. The Psammead is an ancient, ugly and irritable sand fairy who grants them one wish per day, lasting until sunset; however they soon learn it is very hard to think of really sensible wishes, and each one gets them into unexpected difficulties.

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