DIC Secures New Home Entertainment Deal

BURBANK, December 12: DIC Entertainment has granted Alliance
Entertainment Corporation (AEC) the home entertainment and non-exclusive
digital rights in the U.S. and Canada for select animated and live-action
titles in its library, in a three-year, multi-million-dollar deal.

The agreement gives DIC properties access to distribution at
conventional retail outlets and opens up opportunities on digital platforms.
AEC, which supplies 5,000 U.S. storefront retailers as well as the leading
online retailers, will have a first-look option to distribute, for home video
and in digital formats, the newly produced series for KOL’s Secret Slumber
Party programming block on CBS, including Horseland. AEC will also have the option to distribute
direct-to-video properties, including The Secret Millionaire’s Club, as well as content from DIC’s library of
programming. AEC will market and distribute the properties to mass market and
specialty retailers, including national and regional supermarket and drugstore
chains. The first product releases are scheduled for the first quarter of 2007.
AEC will also have the option to deliver DIC content via digital streaming and
downloads.

“AEC is recognized as the premiere wholesale distributor of
home entertainment product to retail markets, with unique capabilities that
will ensure widespread retail placement for DIC properties,” said Nancy Fowler,
DIC’s head of global sales. “Their distribution expertise will result in an
ongoing retail presence for both classic catalog titles and newly produced
properties, and we are thrilled to have a partner of AEC’s caliber onboard to
guide our product into the marketplace.”