Successful completion of IPO

 Immediate Release March 12, 2010

DQ Entertainment plc ("DQE")

Successful completion of 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 the successful completion of the Initial Public Offer ("IPO") of its Indian subsidiary DQEI on March 10, 2010.

The pricing for the IPO will be finalised on Saturday 13 March 2010 and a further announcement made on Monday 15 March 2010. The IPO is expected to raise between £17.5 million to £19 million (before expenses).

As per the data available on the websites of the Indian stock exchanges at www.bseindia.com & www.nseindia.com, DQEI's IPO is over subscribed by 86.33 times. The break up of the over subscription is as follows:

The equity shares of DQEI will be listed and traded on the Bombay Stock Exchange Limited. SBI Capital Markets Limited, the Book Running Lead Manager ("The BRLM"), Karvy Computershare Private Limited, the Registrars to the Issue and the executive director or the managing director of the Bombay Stock Exchange Limited shall ensure that the basis of allotment is finalized in a fair and proper manner in accordance with the SEBI (ICDR) Regulations.

As announced on March 05, 2010, the price band for the IPO was Rs. 75 to Rs. 80 per Equity Share and the anchor investor portion of 2,830,860 Equity Shares was allocated 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).

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 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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