Quarterly Operations Update

DQ Entertainment PLC

("DQE or the "Group")

Quarterly Operations Update

DQE announces a licensing deal with Walmart and 12 other new licensing and

 merchandising agreements for The Jungle Book

DQ Entertainment plc (AIM:DQE), a leading animation, gaming, live action, entertainment production and distribution company, is pleased to announce a number of new licensing and merchandising deals concluded during the quarter ended March 2013.

The most significant of these was signed by DQE's licensing agent in the USA, SMC Entertainment Group, Inc. ("SMC"). SMC, in collaboration with the home-video distribution licensee Phase4 Films who has secured the rights for the launch of The Jungle Book DVDs in all Walmart stores across the USA and Canada.

Other important new licensing and merchandising agreements include:

1. Bendon Publishing for colouring, activity and story books in the USA and Canada;

2. PlayWow International Ltd. for inflatable toys and Rotomolded toys in the USA, South Africa and Australia;

3. Promotional tie-up with Norton anti-virus software provider in the USA;

4. Magic Jump Inc. for bouncy castles in the USA and Canada;

5. Dynamic Displays for 45' helium parade balloons in the USA;

6. Cardinal Industries, Inc for puzzles board games in the USA and Canada;

7. Dragon Toys for battery operated animatronics in the USA and Canada, Australia, New Zealand and South Africa;

8. CraftStone for plush toys, fabric story books, mini blankets in Europe and Asia;

9. Promotional tie-up with Air Transat for in-flight entertainment in the USA and Canada;

10. Budge Studios for apps on IOS and Android platforms;

11. Mandodari for DVD part works in Italy; and

12. Compupress for DVD partworks in Greece & Cyprus.

The above new agreements are in addition to those previously announced by the Company on 15 February 2013 (see RNS number 9444X) which also detailed projects completed and new projects under development during the quarter.

Tapaas Chakravarti, Chairman and CEO of DQE said: "We are successfully exploiting the Jungle Book franchise across multiple geographies and multiple product lines. Based on the success of our Jungle Book TV series - which is validated by the quality of partners it has attracted globally - we continue to exploit the revenue potential from licensing of our other properties such as 'Peter Pan', 'Robin Hood' and '5 and IT'."

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About DQE:

DQE is a leading global entertainment group listed on AIM in London and the BSE and NSE in India specializing in animation, gaming and VFX content production, licensing and distribution. DQE is associated globally with major 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. Season 1 of The Jungle Book has been broadcast in over 130 countries while season 2 is currently in production. DQE employs a creative talent pool of approximately 3,000 people and has produced a 3D stereoscopic feature film The Prodigies for Warner Bros, France & Fidélité Films, and France while The Jungle Book feature film, with lead writing by Billy Frolick (Madagascar) is currently in development.