DHX Media Ltd. - Strategic investment in childrens gaming firm

Montreal, Canada-based Tribal Nova is an established, on-line gamedeveloper and operator of gaming and video-on-demand (VOD) broadband channelsfor children 3 to 12. Tribal Nova commercializes these channels in partnershipwith major children's TV broadcasters and Internet Service Providers (ISPs) inNorth America and Europe, and shares significantly in the subscriptionrevenues generated. Tribal Nova recently launched its first channels in Franceand Canada in collaboration with leading ISPs such as Orange and AOL/NeufCegetel. Another channel is scheduled to launch in the USA in early 2008, inpartnership with a US TV children's broadcaster.

The partnership will provide another platform over which DHX Media canexploit its content library. DHX Media will also benefit from its equityparticipation by introducing Tribal Nova to its children's broadcaster clientsaround the world for whom an internet presence with a viable business model.Tribal Nova will offer broadcasters the ability to create new revenue streamsfrom its subscription service gaming and VOD platforms.

Tribal Nova's expertise combined with their proprietary software platformenables it to provide an intuitive, kid-friendly, curriculum-based educationaland entertaining experience to kids. Children can have access to hundreds ofgames featuring many renowned TV characters and full video episodes in asecure immersive virtual world. Tribal Nova has produced or licensed rights toover 500 games featuring mostly children's TV characters. Tribal Nova'splatform involves a highly-developed front-end user interface, a robustcontent management platform engine and server-side technology which enablesTribal Nova to offer a turn-key solution to potential clients and partners.This enables a reduction in both the development and launch costs ofadditional distribution channels in terms of development effort andtime-to-market, permitting broadcasters to quickly and cheaply deploy anon-line distribution channel for their content giving rise to a potential newsource of revenue.

Tribal Nova is led by founders Guillaume Aniorté and Pierre Le Lann whotogether have over 20 years of children's interactive development andproduction experience. In three years, the co CEOs have built Tribal Nova intoan award-winning Canadian leader in the production of online games forchildren 3 to 12 years of age, producing numerous games featuring kids'favourite television characters, such as Caillou, Toopy and Binoo, TotallySpies or Di Gata Defenders. At the same time they were building a long termstrategy to capitalize on the exponential growth of kid's online gaming andvirtual worlds. Tribal Nova does not produce television programs.

    Michael Donovan, Chairman and CEO, commented,    "We are delighted to announce this strategic partnership with a leading    player in on-line casual gaming for three to 12 year olds. Our    broadcaster customers are increasingly faced with the need to augment    their terrestrial, cable and satellite presence with on-line programming    and we look forward to supporting them via this partnership. A key tenet    in DHX Media's strategy is the exploitation of digital content on-line    and we look forward to working with this new distribution channel    partner."    Co-CEO's Guillaume Aniorté and Pierre Le Lann, commented,    "We look forward to exploiting many synergies with DHX, combining our    interactive expertise with DHX's extensive library and relationships with    TV broadcasters worldwide. With this investment, we plan on taking our    broadband channels to even more exciting levels by integrating major    community, web 2.0 and user generated content functionalities adapted for    kids. We also plan on accelerating our international expansion into    European and North American markets. According to DFC intelligence, the    worldwide children online game market is expected to grow to $655 million    in 2011. Tribal Nova is poised to become one of the key players in this    rapidly emerging market."    About DHX Media

Disclaimer

This press release contains forward looking statements with respect tothe Company. Although the Company believes that the expectations reflected insuch forward looking statements are reasonable, such statements involve risksand uncertainties and are based on information currently available to theCompany. Actual results may differ materially from those expressed or impliedby such forward looking statements. Factors that could cause actual results orevents to differ materially from current expectations, among other things,include risks related to market factors, customer contract interpretation,application of accounting policies and principles, and production relatedrisks, and other factors discussed in materials filed with applicablesecurities regulatory authorities from time to time including mattersdiscussed under "Risk Factors" in the Company's short form prospectus datedNovember 7, 2007 and in the Company's Amended Annual Information Formincorporated by reference therein. These forward-looking statements are madeas of the date hereof, and the Company assumes no obligation to update orrevise them to reflect new events or circumstances.

For further information

Enquiries: DHX Media - Canada: Dana Landry,Chief Financial Officer
David A. Regan, EVP, Corporate Development & IR,(902) 423-0260
AIM Nominated Advisors: Canaccord Adams Limited: Neil Johnson
Erin Needra, +44 (0) 20 7050 6500