Production Agreement

For Immediate Release 16 February 2015

DQ Entertainment plc

("DQE" or the "Company")

Production Agreement

DQ Entertainment plc (AIM:DQE), a global entertainment production and distribution company focused on children's and family animation content, announces that the Company's 75 per cent owned subsidiary, DQ Entertainment International Limited, has entered into an agreement with iStorySM Animation Studios for the development and production of a 52 episode x 11 minute Peg Heads ® CGI animated series, which is to be proposed to international broadcasters.

The Peg Heads story line will be written by four time Emmy Award winning writer Jeffrey Scott and is based on three characters created by Jon Capriola (the founder of iStory).

Tapaas Chakravarti, CEO of DQE commented "We are extremely proud to announce our relationship with iStory Animation. There is something really special about this property and DQE and iStory wish to build a global brand after the proposed launch of this series in 2016." 

Jon Capriola, CEO of iStory Animation Studios also commented: "Peg Heads is a truly unique property that has multi-dimensional characters, offers a startling storyline, and lastly promotes acceptance and diversity in the worldwide market."

For further information, please contact:

About iStoryHeadquartered in Sarasota, Florida, iStory™ is a multimedia entertainment concern that is focused on making play engaging, entertaining and educational. Founded in 2014, iStory is a spin-off of Laser Pegs Ventures that has been recognized as an award-winning toy developer in over 30 countries. For more information, please visit www.laserpegs.com.

About DQ Entertainment plc:

DQE is a global entertainment group with its production and distribution bases in Ireland, India and Manila, specializing in animation, gaming and VFX content production, licensing and distribution. DQE employs a large creative and production talent pool which has produced intellectual properties such as The Jungle Book, Charlie Chaplin, Peter Pan, Iron Man, Casper, Little Prince, Lassie, Robin Hood and other properties, in partnership with international broadcasters, distributors and independent producers in Europe & USA. DQE is a Emmy award winning company, with multiple Emmy nominations and has also won the 'International Studio of the year 2012" at Cartoons on the Bay, Italy. For more information please visit www.dqentertainment.com