First digital entertainment city in Hyderabad

* Entertainment Academy to launch in June 2008

* The First Phase of the Digital Entertainment City will be ready by December 2008

* The Digital Entertainment City Task Force (DECTF) formed will consist of industry leaders and representatives of Government of AP

Hyderabad, January 17, 2008: The Government of Andhra Pradesh in collaboration with FXLabs, Suresh Productions, Gemini TV and DQ Entertainment today announced its plans to roll out lndia's first Digital Entertainment City in Hyderabad. Located in Hyderabad, the city will house Animation companies, Game companies, Film production houses, Music studios, TV studios, Training academies, Regulation support office and an Entertainment complex, all in one location.

Under the alliance, the Government of Andhra Pradesh will allot suitable extent of land in Hyderabad for the project, which will be managed and promoted by a Digital Entertainment City Task Force (DECTF). This consortium will comprise of industry leaders including Sashi Reddi, Founder and Chairman, FXLabs; Suresh Babu - MD & CEO, Suresh Productions; Mr. P. Kiran - Director, Gemini TV; Tapaas Chakravarthy - Chairman & CEO, DQ Entertainment; JA Chowdhary, Chairman Nvidia and Sudhish R, CEO Colorchips, along with the State Government.

"The Digital Entertainment City will facilitate the development and establishment of a world-class infrastructure to encourage the growth of the animation, gaming, television, film, multimedia, radio, music and new media industries in the capital state of Andhra Pradesh," said Sri. SK Joshi, IAS, Secretary to Government, Information Technology & Communications Department.

Commenting on this initiative Mr. Sashi Reddi, Founder and Chairman, FXLabs, said "The government of Andhra Pradesh is showing great vision and leadership with this initiative. Within 10 years, Hyderabad and AP, will become one of leading global centers for media and entertainment. Given the support from the industry, this initiative has the capacity to revolutionize the competitive landscape and I and FXLabs are proud to be associated with it."

Mr. Suresh Babu, MD &CEO, Suresh Productions, added that "Advancements in technology are helping the Indian film industry in all the spheres "� film production, film distribution, exhibition and marketing. The industry is increasingly getting corporatised and with a compounded annual growth of 18%, it is projected to be Rs. US$ 38.25 billion by 2010.This initiative and the resulting work performed here will place Hyderabad amongst the leading entertainment destinations in India and across the globe."

Mr. Tapaas Chakravarthy, Chairman & CEO, DQ Entertainment said "Indian Animation and Gaming industry is growing over 34.8% CAGR and is expected to cross USD 1.3 billion by 2010. Now with direct development and investment for animation productions and gaming productions by International majors and Bollywood majors including the core animation industry itself, the growth projected by NASSCOM will outstrip all imaginations with such initiatives as taken by Government of Andhra Pradesh. This initiative of the Digital Entertainment City by the Govt. of Andhra Pradesh will not only generate tremendous revenues but sizeable employment. We are happy to be part of this initiative."

Commenting on the growth in the television industry, Mr. P. Kiran, Director, Gemini TV, said that "Currently at US$ 37 billion, the Indian television industry is projected to grown at an impressive rate of 24% to reach US$ 106.75 billion by 2010. Subscription revenues are projected to be the key growth driver for the Indian television industry over the next five years, both from pay TV homes as well as increased subscription rates. The buoyancy of the Indian economy will drive the homes, both in rural and urban (second TV set homes) areas to buy televisions and subscribe for the pay services. New distribution platforms like DTH and IPTV will only increase the subscriber base and push up the subscription revenues."

A training academy for various courses in digital entertainment is expected to be launched in June 2008. The initial coverage of courses will be in film production and animation. The first phase of the Digital Entertainment city is targeted to be ready by December 2008. The project will include Training Academies to provide industry recognized certification courses, Animation companies, Game companies, Film production and Music studios, a Regulation support office, an Entertainment complex and Exhibition complex. Attracting business and intellectual mind share, the proposed Centre of Excellence is intended to serve as a platform for all media related academies and businesses to develop collectively. This venture has immense employment opportunities in both the direct and indirect sectors of the state.

Amongst other initiatives, The Digital Entertainment City will also host multiple functions annually, including the Annual Animation Festival, the Annual Film Festival, Annual Game Competitions and Entertainment Conferences. The project will include Animation, Gaming & Digital Entertainment companies of national and international repute to be partners in this exciting venture.

About FXLabs

FXLabs is the leading end-to-end game company in India. Founded in September 2004, FXLabs began its operations building PC based games both for the Indian market as well as the global market. In December 2007, FXLabs acquired an online game portal to expand its operations into the online casual game space. The vision of the company is to be the top developer and publisher of games for all platforms including PC, console, online casual, MMOG, and handheld. The current pipeline of titles under development include Inferno, a game based on Dante's Inferno, a game based on Dhoom 2, the most valuable property in Bollywood, as well as a game based on Archie Comics. Given its strong relationships to the film industry in India, FXLabs plans to release various titles in partnership with leading property owners in India. Plans are underway for launching an MMOG that would appeal to India's growing pool of online gamers.

About Suresh Productions

Suresh Productions and Spirit are recognized as leaders in film production and post production services and provide a one-stop shop for filmmakers seeking state of the art facilities for end-to-end solutions in film production, processing, digital intermediate, visual fx, animation, restoration, studios, distribution and exhibition. Suresh Productions is in the Guinness Book of world records for producing over 125 feature films by a single producer - Dr. Ramanaidu. The Ramanaidu Color Labs has one of the most modern film processing and printing facilities in the world and has processed hundreds of the best and most recognized movie properties.

About DQ Entertainment

DQ Entertainment Ltd is Hyderabad based leading producer of Animation and Visual Effects (VFX) for global TV, Feature Film, DTH Videos including Online, Mobile and Next-gen Console game art and In-game animation creation. The company is engaged in production and mostly in co-production with world majors for animated as well as Animation with Live Action TV series, Feature Films, DTH Videos in 3D CGI, 2D Digital as well as 2D Traditional, which includes concept to post-production with its base in Hyderabad, India; Manila, Philippines with currently sizeable production capacities developing in Chennai, Mumbai and Kolkata. DQ Entertainment has taken its core competence of Animation and VFX to International heights by partnering with gaming world leaders to produce Cinematics, In-game animation and in-game art for XBox 360, PS3, Nintendo Wii and for Mobile games. DQ Entertainment recently has got listed in AIM, London Stock Exchange, London.

About Gemini TV

Gemini TV is the premier Telugu Satellite channel in the country. Commencing broadcast in 1995, the channel quickly found its way into the hearts and minds of the Telugu speaking population in India and abroad and today is the undisputed Number 1 Telugu channel in the country. Part of the Sun Network, the Gemini bouquet of channels includes Teja, Gemini Music, and Gemini News with a wide mix of entertainment, movies, music and current affairs, catering to the varied tastes of the viewers.