Legal Action

RNS Number:7963B
DIC Entertainment Holdings, Inc.
09 August 2007

The information contained herein is restricted and is not for
publication, release or distribution in or into the United States of America,
Canada, Australia, New Zealand, the Republic of Ireland, South Africa or Japan
or to any national, resident or citizen of the United States of America, Canada,
Australia, New Zealand, the Republic of Ireland, South Africa or Japan.



                             DIC Entertainment Inc.
                                        
                                  Legal Action
                                        
(London 9 August, 2007) DIC Entertainment (DIC or the Company) announces that,
in conjunction with McDonald's Corp., it has launched a legal action to recover
amounts owed to the Company by Cornerstone Overseas Investment Limited, a
related company of China Retail Management Limited (CRM), the master toy and
apparel licensee for McDonald's McKids line in Asia (excluding Japan and India).
The master toy license agreement between McDonald's and CRM was signed in 2005.

DIC is the global consumer products agent for McDonald's.  The decision to 
pursue legal action follows a period of negotiation with CRM over the defaulted
payments.  On August 2nd the Company was informed by CRM via its legal 
representatives that it intends to put in motion a voluntary winding-up of the 
companies involved, an action which prompted the Company's swift legal action to
preserve its position.

The maximum exposure in the financial year ending December 31st 2007 for DIC,
if no amounts were recovered, would be an adverse impact to the Company's EBITDA
of $3.9 million.  However, events are clearly at a premature stage to be fully 
certain of the exact effect, if any, on the Company's financial position.  
Together with McDonald's, the Company's management remains confident of the 
Company's legal position and will pursue this action vigorously to ensure 
Cornerstone honours their contractual obligations in addition to seeking other 
damages, DIC's shares of which could be in excess of $10 million.  The Company's
management are also confident of finding alternative licensees for the McKids 
brand going forward in the relevant Asian territories.

DIC intends to provide an update of the situation along with its interim results
during the week commencing September 
24th 2007.


For further information please contact:
Jeffrey Edell, President                          Tel: +1 818-955-5400
Simon Forrest, Investor Relations                 Tel: +44 (0) 7885 317746
Craig Breheny / Ash Spiegelberg, Brunswick        Tel: +44 (0) 20 7404 5959


                                      ENDS


This announcement is not for publication, release or distribution, directly or
indirectly, in, into or from the United States of America, Canada, Australia,
New Zealand, the Republic of Ireland, South Africa or Japan or their respective
territories or possessions.


This announcement does not constitute or form part of an offer for sale or
subscription of, or any solicitation of an offer to purchase or subscribe for,
securities and any purchase of or subscription or application for shares
("Common Shares"). The price and value of, and income from, shares may go down
as well as up. Persons needing advice should consult a professional adviser.


The securities referred to herein have not been registered in any jurisdiction,
and, in particular, will not be registered under the U.S. Securities Act of
1933, as amended, or any applicable state securities laws and may not be offered
or sold in the United States absent registration or an applicable exemption from
such registration requirements.


Information contained in this announcement may include 'forward looking
statements'. All statements other than statements of historical facts included
herein, including, without limitation, those regarding the company's financial
position, business strategy, plans and objectives of management for future
operations (including development plans and objectives relating to the company's
business) are forward- looking statements.


Such forward-looking statements are based on a number of assumptions regarding
the company's present and future business strategies and the environment in
which the company expects to operate in the future. These forward-looking
statements speak only as to the date of this announcement and cannot be relied
upon as a guide to future performance. The company expressly disclaims any
obligation or undertaking to disseminate any updates or revisions to any
forward-looking statements contained in this announcement to reflect any changes
in its expectations with regard thereto or any change in events, conditions or
circumstances on which any statement is based.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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