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Three-year renewal follows success of toy range since launch

Halifax, NS – 12 July 2017 – DHX Brands, the dedicated brand management and consumer products arm of DHX Media (TSX: DHX.A, DHX.B; NASDAQ: DHXM), has extended Character Options’ master toy license for Teletubbies for a further three years, following the current toys’ retail success.

a boy and girl play with a orange and pink toy

The deal, which runs until 2020, is for worldwide manufacturing rights with U.K. distribution and will see Character Options adding further plush and plastic toys to the range. New lines will be inspired by exciting new elements from season two, which launched earlier in 2017, such as the Tubby Car. In addition, further Tiddlytubbies toys are being developed following their initial launch this month.

The Teletubbies product range first launched in January 2016 and was the number one best-selling new toy property in the U.K. that year (NPD). Its UK success continued into 2017 with results showing impressive growth across all categories, with overall sales up 36% in value and 23% in units from the same period in 2016. The success of the plush lines continued to drive this growth, featuring as four of the top-five selling lines across the toy range.

Retail distribution and support for the range has been very strong across all key accounts, grocers, high street and specialist retailers, leading the way for the wider licensing programme. DHX Brands and licensing agent CPLG are now finalising their own brand marketing plans to support across multiple categories with key grocery and specialist retailers for Autumn/Winter 2017.

Already this year, Character Options has introduced Teletubbies Weebles to their product offering with further launches planned for the second half of the year, including the adorable 20th anniversary Party Plush characters and Tiddlytubbies toys.

Tom Roe, Commercial Director at DHX Brands said: "As we continue to grow the overall licensing programme for Teletubbies, it is imperative that we build on the strong sales of core categories. Character Options has done a superb job with the toy line and we are excited about the new product to come that will complement the current broadcast season. We are confident that our continued relationship will see Teletubbies toys go from strength to strength at retail.”

Jerry Healy, Group Marketing Director for Character Options, added: "We are delighted to have renewed our contract for worldwide manufacturing rights with U.K. Distribution. Since its launch in January 2016, Teletubbies sales in the U.K. have continued to grow and the brand is becoming a staple. We believe it will be in our portfolio for many years to come. The new series captures the imagination of children, and provides us with a wealth of environments and characters to expand our product range and grow sales even further."

For more information, please contact:

Aimee Norman at DDA Blueprint PR +44 (0) 20 7932 9800

About DHX Brands DHX Brands is the dedicated brand management and consumer products arm of DHX Media Ltd. (TSX: DHX.A, DHX.B; NASDAQ: DHXM), one of the world’s leading children’s content and brands companies. DHX Brands specializes in creating, building and maintaining high-profile global entertainment brands within the children’s and young adult markets. With expertise in brand development, licensing, marketing and creative, we build and manage brands that captivate and inspire through engaging content, first-class distribution, quality consumer products, immersive live experiences and digital media. DHX Brands’ world-class portfolio includes Peanuts, Teletubbies, Strawberry Shortcake, Twirlywoos and In the Night Garden. DHX Brands has operations in London, Toronto, New York, Los Angeles and Hong Kong.

About Character Options The Character Group plc was founded in 1991 is an AIM listed company. The Group is engaged in the design, development and international distribution of toys and games. In 2003 the Character Group made a strategic decision to develop its own products to market alongside those sourced from our third party distributor partners. Today over 75% of all products marketed by the group are developed in-house. A major benefit of this strategy was the opening of international markets for our product, which is now sold in over 30 countries worldwide. The Group now has offices in London, Manchester, Hong Kong and China, and employs over 230 people. Character Group plc is an AIM listed company.


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