Price band for the proposed Indian IPO of DQE

DQ Entertainment plc ("the Company")

Price band for the proposed Indian IPO of DQ Entertainment (International) Limited

("DQEI")

DQ Entertainment plc (AIM: DQE), the animation, gaming and entertainment production and distribution company, is pleased to announce that the price band for the proposed initial public offering ("the Issue") of equity Shares of Rs. 10 each in DQEI ("Equity Shares") has been fixed at between Rs. 75 and Rs. 80 per Equity Share. A discount of Rs. 7 to the issue price determined pursuant to completion of the book building process has been offered to eligible employees of DQEI. The price band has been arrived at in consultation with SBI Capital Markets Limited, the book running lead manager ("BRLM"). 

DQEI has received subscriptions from certain investors in the anchor investor portion of the Issue. The anchor bid/issue opened and closed on 5 March 2010. DQEI, in consultation with the BRLM, allocated 2,830,860 Equity Shares to IDFC Small and Midcap Equity (SME) Fund, T Rowe Price International Discovery Fund, Birla Sunlife Equity Fund, Birla Sun Life MIP II - Savings 5 Plan, Morgan Stanley A.C.E. Fund, Axis Tax Saver Fund and Axis Equity Fund at a price of Rs. 80 per Equity Share (including share premium of Rs. 70 per Equity Share) raising a total Rs. 22.65 crores (approximately £3.29 million).

As announced on 23 February 2010, the Company has completed a pre-IPO placement for Rs. 25.69 crores (approximately £3.725 million at current exchange rates) through a placement of 3,772,771 Equity Shares, with IDFC Investment Advisors Limited and other corporate investors and high net worth individuals.

DQEI, is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an IPO of its equity shares in India and has filed a red herring prospectus ("RHP") with the Securities and Exchange Board of India ("SEBI"). The RHP is available on the website of SEBI at www.sebi.gov.in and on the website of the BRLM at www.sbicaps.com.

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any potential investor should note that investment in equity shares involves a high degree of risk. For further details, potential investors should refer to the RHP, which has been filed with Registrar of Companies, Andhra Pradesh, including the section titled "Risk Factors". This press release has been prepared for publication in India and the UK and may not be published or distributed in the United States of America and is not an offer or solicitation of an offer for sale of securities in the United States. The equity shares of the Company and DQEI have not been and will not be registered under the U.S. Securities Act of 1933, as amended or any state securities laws in the United States. This announcement does not constitute an offer of securities or sale in any jurisdiction, including the United States, and may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1993.

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