Price Discovery for IPO of DQ Entertainment

Immediate Release 15 March 2010

DQ Entertainment plc ("DQE")

Price Discovery for 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 on 10 March 2010 DQEI closed the bid issue period of the initial public offering ("IPO") of its equity shares.

Under the IPO, applications received amounted to 86.33 times the issue size. The details of the same are available on the websites of the Indian stock exchanges at www.bseindia.comand www.nseindia.com. In the issue, DQEI allocated 2,830,860 equity shares to Anchor Investors at the price of Rs. 80 per equity share.

The price at which the equity shares will be issued has been determined at Rs. 80 per equity share in consultation with SBI Capital Markets Limited, the book running lead manager ("the BRLM"). The gross proceeds of the issue at the issue price shall amount to approximately Rs. 1,283 million (approximately GBP 18.87 million).

The issue (including the pre-IPO placement of 3,772,771 equity shares at a price of Rs. 68.11 per equity share aggregating to Rs. 257 million, approximately GBP 3.78 million) shall constitute 25% of the post issue paid-up capital of DQEI. Accordingly, DQ Entertainment (Mauritius) Limited, a wholly owned subsidiary of DQE, will hold 75% of the post-issue paid-up capital of DQEI. At the issue price of Rs. 80 per equity share, the post issue paid-up capital of DQEI will be valued at Rs. 6,343 million (approximately GBP 93.27 million)

Post the closure of the bidding period, DQEI will now file the prospectus with the Registrar of Companies, Andhra Pradesh, India ("ROC"). Subsequently, a basis of allotment will be filed with the Bombay Stock Exchange Limited ("the Listing Authority"). The BRLM, Karvy Computershare Private Limited (the registrars to the issue) and the Listing Authority shall ensure that allocation and allotment of shares is completed in a fair and proper manner in accordance with the SEBI (ICDR) Regulations. Post credit of shares and refund of residual funds to investors, DQEI will file the final listing application with the Listing Authority and thereafter the equity shares of DQEI will be listed and traded with the Listing Authority.

Exchange rate conversion assumed at 1 GBP = Rs. 68 (approx)

Change of name of AIM nominated adviser and broker

DQE's AIM nominated adviser has changed its name from Blomfield Corporate Finance Limited to Religare Capital Markets (UK) Limited and its broker has changed its name from Religare Hichens, Harrison plc to Religare Capital Markets plc, both trading as Religare Capital Markets.

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.inand 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 ROC, 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 1933.

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