DQ Entertainment listed on AIM at LSE

Company News

New Delhi, December 21, 2007

DQ Entertainment Ltd, one of the leading Animation and Game art/ FMV group, has raised funds to the tune of $56 million through its listing on the Alternative Investment Market (AIM), London Stock Exchange (LSE) on 18th December 2007. The funds raised will be primarily used for DQ Entertainment's expansions of several production facilities in India; more Sales & Distribution network world-wide, direct and co-investment in IPR's global partnerships, immediate European acquisitions and joint ventures.

With its production facilities in Hyderabad, contracted production facility in Manila and its sales set - up in Paris, Los Angeles and Tokyo, DQE is the leading production house for all platforms of CGI (3D)/ 2D Traditional, 2D Digital/ VFX including TV series, feature films, direct to home videos (DTH). DQE has aggressively added state-of-the-art facilities with large high quality trained Human Resources production of Next - gen game art and Full Motion Video (FMV) for AAA games.

Listing at LSE is a major step in DQE's growth strategy, which will fuel its countrywide expansions of production and training endeavours, sizeable investments in global IP's including international acquisitions & joint ventures.

Commenting on the IPO listing, Mr. Tapaas Chakravarti, CMD & CEO of DQ Entertainment Ltd said, "DQE's comprehensive international presence and partnership will have sizeable boost to its international profile with listing at AIM, LSE. The global animation and gaming industry combined together is growing over 10% CAGR while its witnessing a paradigm shift in use of next-gen technologies to fulfil ever increasing creative needs, manage the cost increase well and deliver across all platforms of distribution including digital platforms. We are ideally placed to exploit immense National and International market opportunities with our proven track record of highest quality, tremendous pool of creative talents, and comprehensive international partnership for iconic branded IP co-productions. This listing will assist DQE to keep up with the growth challenges and manage it well."

The Indian Animation market is forecast to reach c. $869 million while Global Animation market is expected to reach c. $80 billion by 2010. The Indian gaming market is forecast to reach c. $424 million and global market to c. $42 billion by 2010 as per NASSCOM - 'A Study on Animation and Gaming Industry in India' published in January 2007. DQE aims to expand into the global animation market through an extension of its product line including co-production/IP rights.

DQE's growth of 47-50% CAGR hence is supported by the global macro scenario. The company's current co-production and service order book is close to $ 94.6 million.

For further information, please contact:

Natasha Gupta, Komal Arora

Good Relations (India) Pvt. Ltd.

Mobile: +91-98119 45822, +91-98187 76033

Email: Natasha@gri.co.in, komal@gri.co.in