The DQ Entertainment and Moonscoop group form strategic partnership for global co-productions and distribution

Company Brief

New Delhi, June 30, 2008

DQ Entertainment International (DQE), the internationally acclaimed and AIM listed animation entertainment company, and MoonScoop Group, one of the leading worldwide brand management and entertainment companies engaged in the production, distribution, licensing, merchandising, marketing and distributing of animated creations, today announced that they have entered into a strategic alliance. The alliance will capitalize on the individual business networks and production expertise of both groups, and provide global operational leverage.

In the new partnership, DQE and MoonScoop aim to co-produce at least five TV series and two feature films (animated and/or live action) for worldwide distribution, with estimated global costs of over $100 million. They expect to release at least one TV series or film each year of the agreement, which runs through 2012. One or more of the co-productions will also potentially feature Indian mythology and characters which are becoming increasingly popular with audiences worldwide. Finally, the companies will also focus on new media business development, following in the footsteps of MoonScoop's successful launches of the kid-oriented VOD and Broadband channels Kabillion (in the US) and Taffy Kids (in Europe).

The new strategic partnership was initially discussed as MoonScoop and DQE began working together on the new animated TV series Casper's Scare School, scheduled for 2009 and co-produced with Classic Media. The two companies also worked together successfully on The Fantastic Four animated series based on the famous superheroes from Marvel. The MoonScoop Group's Mike Young Productions, based in the US and Wales also has a rich history with DQE, working together on the hit animated series ToddWorld and the upcoming Twisted Whiskers, a co-production with American Greetings.

DQ Entertainment is one of the fastest-growing and most-respected animation studios in the world and this strategic agreement will allow each of us to nurture our upcoming projects to ensure their success in today's highly competitive marketplace, explains Christophe di Sabatino, co-Executive Chairman of The MoonScoop Group. We look forward to working with them on a variety of projects.

DQ Entertainment has been a driving force in the huge growth of the Indian animation industry, added Nicolas Atlan, co-CEO of The MoonScoop Group. They also have some phenomenal stories that need to be told and we're perfectly positioned to help them bring this interesting new content to a worldwide audience.

Tapaas Chakravarti Chairman & CEO of DQE Group said This is a magnificent strategic and functional partnership. Moonscoop and DQE have been associated together in the past for production of The Fantastic Four and we are now co-producing and licensing the iconic Casper's Scare School. There are compelling synergies in working together and we will jointly produce world class television productions and feature films, including those with Indian Mythology and stories. I am extremely pleased to extend our relationship with Moonscoop Group, one of the largest in this domain, to the next level of association.

The entertainment industry is becoming more globalized and it is imperative to our future growth that we develop strategic partnerships with key companies such as DQ Entertainment, said Laurent Billion, COO Europe of The MoonScoop Group. Each of our companies brings something unique to this agreement which will ultimately benefit not only our companies, but our broadcast and licensing partners, as well as the viewers of our content worldwide.

Sanjay Choudhary, Head of Group Corporate Finance for DQE said I am extremely buoyant with this strategic association. We will be able to leverage the strength of both the companies with sharper focus and momentum. There are tremendous commercial synergies and value addition to both the groups. This arrangement synchronizes perfectly with our growth plans at DQE.

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