Sparrowhawk, DIC, Corus Team for New Global Kids’ Channel

LONDON/TORONTO/BURBANK, April 3: Sparrowhawk Media, DIC
Entertainment and Corus Entertainment's Nelvana Enterprises are working
together to launch KidsCo, a multiplatform global television channel for
children and families.

KidsCo begins its global rollout this year using
Sparrowhawk's broadcast distribution facility in the U.S. and the company's
international network of affiliates. It is slated to launch in Central and
Eastern Europe in the fall, expanding to a further 40 markets in Europe, Latin
America and Asia in 2008 and 2009.

Content on the channel will encompass animated and
live-action fare culled from the DIC and Nelvana libraries. DIC's programming
library features over 3,000 half-hours of content, including Inspector
Gadget, Strawberry Shortcake, Madeline
and Dennis the Menace. Nelvana
Enterprises' is also home to some 3,000 half-hours of kids' programming, such
as Babar, Franklin and Rolie Polie Olie. KidsCo will also acquire kids’ programming and
produce original properties. It will also feature prime-time family movies.
Programming will be localized market-by-market and will be programmed with
age-targeted day-parts.

"This alliance draws on the collective expertise of the
best in the business, and the libraries of our content partners contain some of
the world's most popular children's programming," said David Hulbert,
Sparrowhawk Media's chief executive. "The combined experience within the
KidsCo organization has enabled us to develop this concept based on an innovative
business model from which we all benefit. Sparrowhawk's global commercial and
technical distribution networks manage the successful operation of the Hallmark
Channel across more than 150 countries. It is this unique combination of assets
that enable us to deliver KidsCo in an environment designed to reassure
parents, at a price that platforms will find very refreshing."

Andy Heyward, the chairman and CEO of DIC, added, "As
the children's market continues to evolve it presents new challenges for
program suppliers looking to find a home for their product. The KidsCo
collaboration allows Sparrowhawk, Corus and DIC to pioneer an innovative
business model that allows us to own international broadcast real estate to
showcase our existing catalogs, as well as launch new programming overseas.
KidsCo offers the partners a unique opportunity to merge their combined
strengths to create a truly dynamic international distribution platform."