DQ Entertainment and Gaumont-Alphanim sign production agreement

Company Brief

Hyderabad, October 28, 2009

DQ Entertainment plc ("DQE"), the AIM listed, India based animation, gaming and live action entertainment group, has signed a co-production agreement with Gaumont-Alphanim, one of the leading animation and film producers in France, at the recently concluded Cannes Festival MIPCOM 2009. The series is being produced at an estimated production budget of € 6.9 million.

DQE, working alongside DQ Entertainment Ireland, a wholly owned subsidiary, will start work immediately on the co-production of a third series of 'Galactik Football', which follows two successful co-productions with Gaumont-Aplhanim - 'Delta State' and 'Potatoes and Dragons'. The first broadcast of Galactik Football is slated to coincide with the FIFA World Cup in June 2010, the premier international football tournament.

Three additional projects are also under discussion, including one live action television series to be produced by DQE.

DQE and Gaumont-Alphanim are pursuing a business model of raising the maximum production budget through broadcasting and pre-sales agreements, with all production projects completed within a 3 year window.

Tapaas Chakravarti, Chairman and CEO of DQE commented:

"This is the beginning of a new and exciting era with Gaumont-Alphanim, starting with Galactik Football 3. By combining production, distribution, licensing and global networking capabilities we believe today's announcement is a significant strategic step for DQE but at minimal risk to our business model. Gaumont is virtually the oldest cinema and event group in and enjoys an unchallenged reputation in our industry."

Clement Calvet, CEO of Gauomont-Alphanim also commented:

"We want the best for Galactik Football and we are glad that DQE has agreed to join us. Together with DQE, I have no doubt that we'll deliver a great show for kids all over the world premiering in June 2010 for the next World Cup."

For further information, please contact:

Concept PR

Geeta Fadnavis

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Email: geeta@conceptpr.com