Financial results for quarter ended 30 June 2012

DQ Entertainment plc

("DQE" or the "Group")

Indian subsidiary financial results for the quarter ended 30 June 2012

DQE Entertainment (International) Limited ("DQE India" or "the Company"), the Bombay Stock Exchange and National Stock Exchange of India listed, production and distribution company, which is 75 per cent owned by DQE is pleased to announce un-audited financial results for the quarter ended 30 June 2012 prepared under Indian GAAP.

Full details of the DQE India un-audited results are available from the DQE India section of the BSE (www.bseindia.com) and NSE (www.nseindia.com) websites.

Financial Highlights for the quarter ended June 2012

1. Revenue increased 11% to USD 5.63m (2011: USD 5.09m)*.

2. EBITDA improved by 16% to USD -0.51m (2011: USD -0.61m)*

3. Loss before tax improved by 33% to USD -1.67m (2011: USD -2.50m)*

As previously reported, revenues of DQE India are affected by seasonal variations of the global animation industry. Accordingly, the Board anticipate approximately 60% of Group activity will occur during the second half of the financial year with the majority of revenue being recognised in the last four months of the financial year.

Performance in Q1 2012 has been no different but the ongoing revenue growth and reduction of losses in the quarter demonstrate the continuing growth prospects of the Group.

* All results converted at an assumed exchange rate of USD 1: INR 55.

Tapaas Chakravarti, CMD & CEO, said:

"Having established our position in the world of children's entertainment globally, we now aim to leverage our skills and technological resources to produce high quality content for Television and Feature Films."

We will continue to expand our portfolio of properties for worldwide distribution and focus on Licensing and Distribution growth opportunities for the Group. We remain focused on achieving our growth objectives and to continue to maximise the efficiencies our production pipeline creates through optimal deployment of resources.

The business remains very well placed for future growth."

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