DQE BOOSTS GLOBAL LICENSING IN ISRAEL

DQ Entertainment International

("DQE" or the "Company")

DQE BOOSTS GLOBAL LICENSING IN ISRAEL

Sept 29th, London: DQE, the global entertainment production and distribution company, is pleased to announce licensing and merchandising agreements for 'The Jungle Book' in Israel. The agreements are with Osem Investments Limited, an Israeli subsidiary of Nestlé S.A. ("Nestle"), a food production and distribution company and also the Burger Ranch franchise, a fast food chain across Israel as introduced by D&C Israel ("D&C"), who are representing DQE's Jungle Book franchise in Israel for merchandise including toys, housewares, apparel, giftware, stationery, foods, beverages and furniture. D&C will administer the deals with Nestle and Burger Ranch in Israel on behalf of DQE.

The agreement with Nestle will see Jungle Book branded merchandise and packaging appear across a variety of Nestle branded products. The agreement also includes a specially commissioned sticker collection incorporating the main four characters of the series (Mowgli, Baloo, Bageerah and Sherkhan). These stickers will be distributed as a free additional insert in up to 50,000 cereal multipacks of the Nestle brand, Honey Nut Cheerios.

The second agreement with Burger Ranch is for the licensing and merchandising across all Burger Ranch franchises within Israel. Under the terms of the agreement, Jungle Book related products will be available from all Burger Ranch stores as either free promotional gifts or pre-selected purchased items. As of 2010, the Burger Ranch chain operated 107 restaurants with more than 1500 employees.

Products included in the launch include coin boxes, bull's eyes, flying models, balls, keyboard stickers and mini rackets.  90,000 such gifts at the cost of 2 Israeli Shekel (NIS) will be added as a gift to child meals at Burger Ranch branches.

DQE's original production in hi-end 3D animation. 'The Jungle Book', is being produced as a 52 episode animated series and a 60 minute TV feature in co-production with international majors including TF1, Moonscoop, and ZDF Group, and has already received a rapturous response with regards to global licensing options.

Tapaas Chakravarti Chairman & CEO of DQE Group commented:

"The Jungle Book as a brand has tremendous profile and recognition worldwide and our licensing agreements with Nestle and D&C endorse this fact. A number of similar agreements are currently under negotiation as we look to develop new and multiple revenue streams for DQE.

We are excited at the potential our relationship with our two new partners and the further development of our Jungle Book franchise."

Michal Laufer, D&C Merchandising general manager said:

"The Israeli market gives Mowgli a bear hug! Even before the series is broadcast we have 3 key licensing deals of 3 important companies that have trusted the new Jungle Book series: Nestle - the worldwide food company, Burgerranch - a local leading Hamburgers chain stores and Ahim Fried - a local significant home textile company.

We are looking to get more and more deals as soon as the TV show will be on air".

Maya Shkolnik cereal brand manager of Nestle Israel said:"We are very proud to be the first to cooperate with this spectacular animation of the new Jungle Book. Mowgli is very beloved and a familiar figure here, among parents and children. As soon as we saw the new brand we have felt that it will be absolutely right to connect between our products as natural values of the basic experience. In October we go on a sale promotion: every customer who will buy a package of 2 Honey Nuts Cheerios boxes will receive an amazing sticker sheet of The Jungle Book characters. We are sure that parents and children will be very happy to enjoy, play and have fun with Mowgli and friends stickers!

Lior Moyal Director of marketing for Burger Ranch chain said:"Many generations of Israelis grew up on the wonderful stories of The Jungle Book. In our efforts to give our young customers an extra experience and values, we decided precisely on this generation of computer games and war toys to explore the children to the wonderful characters of Mowgli and his friends. We have no doubt that to the Burger Ranch kid's meal will be added a fine flavour of old times with this beautiful series characters".

Further Information:

About The Jungle Book:

The series tell stories of the man-cub 'Mowgli' raised in the Indian jungles by a pack of wolves. Drama, excitement and adventure mixed with a high element of comedy tell tales of how Mowgli lives and survives in the jungle, where his only companions are animals. His adventures reflect his daredevil, fearless, high-spirited and fun-loving escapades. He is helped by Baloo the wise bear, his best friend Bagheera the black panther and (sometimes!) mighty Kaa, the rock python. Mowgli learns to overcome adversity and make progress in his life by using his quick wit and natural curiosity, with his constantly optimistic outlook on life. This is very challenging for the little man-cub with an evil enemy like Shere Khan, the royal Bengal tiger never far away.

Mowgli's adventures open out in the lush tropical forest of Seeonee amidst splendid Indian royal forts, temples, waterfalls and the Waingunga river. Throughout the series other characters from the Kipling stories add flavor to the drama, comedy and action, bringing out excellent animation and quality storytelling.

Trailer available for viewing: http://www.youtube.com/watch?v=B5pDCplIPp4