Proposed Indian IPO of DQEI

DQ Entertainment plc ("the Company")

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 Red Herring Prospectus (RHP), filed with the Registrar of Companies, Andhra Pradesh, India ("ROC"), was approved and registered by the ROC on 23 February 2010.

The initial public offering ("IPO") of 16,048,011 equity shares of Rs. 10 each in DQEI ("Equity Shares") for cash at a price to be determined through the 100% book-building mechanism in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009 will be open for subscription between Monday, 8 March 2010 and Wednesday, 10 March 2010. The Equity Shares are proposed to be listed on the Bombay Stock Exchange Limited ("BSE").

The RHP will be available on the website of the Securities and Exchange Board of India ("SEBI") at www.sebi.gov.in and on the website of SBI Capital Markets Limited, the book running lead manager ("BRLM") at www.sbicaps.com .

DISCLAIMER

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 RHP with SEBI. The RHP will be 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 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 This press release has been prepared for publication in India and the UK and may not be published or distributed in the United States of America and is not an offer or solicitation of an offer for sale of securities in the United States.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 DQE 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.

For further information, please contact: