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Halifax, NS – 11 February 2011 – DHX Media Ltd. (“DHX Media” or the “Company”) (TSX ticker: “DHX”), a leading independent international producer and distributor of mainly children’s entertainment content, announced its unaudited financial results for the three and six months, ended December 31, 2010.

Highlights of Q2 2011 Results: (All amounts in Canadian dollars)

  1. Net income of $0.8 million and $1.3 million for Q2 2011 and H1 2011, respectively (Q2 2010: net loss of $0.2 million, H1 2010: net loss of $0.2 million); and,

  2. Revenue of $19.3 million and $31.5 million for the three and six months ended December 31, 2010 ("Q2 2011" and "H1 2011" respectively), an increase of 105% and 41%, respectively (Q2 2010: $9.4 million, H1 2010: $22.4 million);

  3. EBITDA1 of $2.9 million and $4.6 million for Q2 2011 and H1 2011, an increase of 212% and 74%, respectively (Q2 2010: $0.9 million, H1 2010: $2.7 million);

  4. Gross margin as a percentage of revenue was 37% and 38% for Q2 2011 and H1 2011, respectively(Q2 2010: 41%, H1 2010: 38%);

  5. Deliveries of television content of 46.5 and 75.5 half-hours for Q2 2011 and H1 2011, respectively. (Q2 2010: 57.5 half-hours, H1 2010: 152.5)

1 EBITDA represents net earnings (loss) of the Company before amortization expense, interest and other income (expense), non-controlling interest, equity income (loss), development expenses, stock-based compensation expense and one-time charges.

Michael Donovan, Chairman and CEO of DHX Media, commented: "We are very pleased to report growth in our results this quarter and we are particularly pleased with the traction shown by our recent acquisition of W!ldbrain Entertainment.  Our year over year quarterly growth was underpinned by the success of our W!ldbrain subsidiary's Yo Gabba Gabba! live touring show along with an increase in producer and service fee revenue and the increase in the average license fee associated with the proprietary content we delivered to broadcasters during the quarter."

"Our balance sheet, which includes more than $19 million in Cash and Short-term investments net of Bank indebtedness, remains strong and will enable the company to continue driving organic growth and selective acquisitions within our industry."

Consolidated Statements of Income and Comprehensive Income Data Three Months Ended December 31, 2010 Three Months Ended  December 31, 2009Six Months Ended December 31, 2010 Six Months Ended December 31, 2009 ($000)($000)($000)($000) (except per share data)(except per share data)(except per share data)(except per share data)Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Data:1 Revenues…19,2599,42731,50622,375Direct costs and amortization of film and television produced...12,1715,40919,48613,500Gross margin…7,0884,01812,0208,875Selling, general, and administrative…4,2783,2457,6446,685Impairment in value of certain investment in film and television programs…35075450234Income before the following…2,0135243,1511,470Income (loss) from strategic investments…(8)29(18)(24)Equity loss…(83)-(154)-Foreign exchange gain (loss)…(170)(224)(24)(432)Amortization, interest and other expenses, net…(470)(514)(984)(1,098)Provision for income taxes…(452)(24)(686)(116)Net income (loss) and comprehensive income (loss)…830(209)1,285(200)Basic earnings per common share… earnings per common share… average common shares outstanding Basic…61,61844,48461,62244,410Diluted…62,14944,48462,14944,410 As at December 31, 2010As at June 30, 2010 ($000)($000) Consolidated Balance Sheet Data: Cash and short-term investments…25,42222,018 Investment in film and television programs…38,69129,892 Total assets…151,810133,304 Total liabilities…70,35753,125 Shareholders' equity…81,45380,179

Revenues Revenues for Q2 2011 were $19.26 million, up 105% from $9.42 million for Q2 2010. The increase in Q2 2011 was due to increases in proprietary production revenue, producer and service fee revenues, and the addition of DHX Wildbrain, which was acquired in September 2010.

For Q2 2011, the Company accounted for 46.5 half-hours - $5.84 million of proprietary film and television program production revenue, a 19% decrease in half-hours versus the 57.5 half-hours for Q2 2010 but an increase of 49% in revenue per half hour, where the programs have been delivered and the license periods have commenced for consolidated entities. Included in these totals for Q2 2011 are 10 half-hours - $1.10 million (Q2 2010-35.0 half-hours - $1.44 million) for other proprietary titles where the Company has Canadian rights and other rights, which are being accounted for using the percentage of completion method. Q2 2011 proprietary deliveries were in line with scheduled deliveries and Management's expectations.

For Q2 2011, distribution revenues were down 55% to $1.60 million from $3.55 million for Q2 2010, generally due to timing of license periods for existing contracts on hand and the lagging effect on distribution revenues of fewer Fiscal 2010 deliveries. For Q2 2011, the Company recognized revenue on several contracts throughout its existing library and delivered episodes of newer titles. Some of the more significant sales were on the following titles: The Latest Buzz Seasons I-III, Animal Mechanicals Seasons I and II, Grandpa in my Pocket Seasons I and II, Super Why! Season I, Kid vs. Kat Season II, How to be Indie Season I, and Waybuloo Season I.

For Q2 2011, music and royalty revenues, including M&L, increased 768% to $6.25 million (Q2 2010-$0.72 million). Overall, music and royalty revenues, including M&L, were up 768% mainly due to the addition of DHX Wildbrain which has significant licensing revenue, specifically for Yo Gabba Gabba!. Traditional DHX music and royalty revenues, including M&L, was $0.37 million for Q2 2011 (Q2 2010-$0.72 million). Gross Yo Gabba Gabba Live! revenues were $5.63 million and $0.25 for other M&L on Yo Gabba Gabba!. For Q2 2011, new media revenues were consistent at $0.26 million (Q2 2011-$0.26 million) including $0.18 million for the start of UMIGO.

Gross Margin Gross margin for Q2 2011 was $7.09 million, an increase in absolute dollars of 77% compared to $4.01 million for Q2 2010.  The overall margin at 37% of revenue for Q2 2011 was in line with Management's expectations. The gross margin is slightly lower than the last few quarters as a result of the significant increase in contribution relating to Yo Gabba Gabba! Live Tour which has a 30% gross margin.

Operating Expenses Operating expenses for Q2 2011 were $5.08 million compared to $3.49 million for Q2 2010, an increase of 46%, largely reflecting the inclusion of W!ldbrain Entertainment.

SG&A SG&A costs for Q2 2011 were up 32% at $4.27 million compared to $3.24 million for Q2 2010. However, SG&A costs excluding DHX Wildbrain were $2.99 million (Q2 2010 $3.24 million), a reduction of 8% (ahead of expected reductions at 5%) as compared to Q2 2010.

Development Expenses and Other During Q2 2011 development expenses were $0.04 million (Q2 2010 nil). During Q2 2011, $0.33 million (Q2 2010 nil) 'other' expenses were as a result of a one time charge for costs relating to a normal course legal matter settled during the period.

EBITDA For Q2 2011, EBITDA was $2.90 million, up $1.97 million or 212% over Q2 2010. For Q2 2011, this increase was due to the increase in gross margin dollars of $3.08 million, offset by an increase in SG&A of $1.04 million and a $0.07 million decrease in non-cash stock based compensation.

Net Income Net income for Q2 2011 was $0.83 million, compared to $0.21 million loss for Q2 2010, or an improvement of $1.04 million in absolute dollars.

About DHX Media Ltd. DHX Media Ltd. is a leading international leader in television production and distribution, interactive content and entertainment licensing, with an emphasis on children, family and youth markets. With offices in Toronto, Halifax, Vancouver and Los Angeles and three award-winning production facilities, including the recently acquired Wildbrain Entertainment, DHX Media is the producer or co-producer of over 40 original television series and maintains a library of over 2,300 half-hours of television productions that spans both animated and live action programming.  Live action series include That's So Weird, How to be Indie and This Hour Has 22 Minutes; animated series include Animal Mechanicals, Kid vs Kat, dirtgirlworld, Franny's Feet, Martha Speaks and new preschool show, Rastamouse. DHX Media Ltd. shares are listed on the TSX, the Toronto Stock Exchange.

Disclaimer This press release contains forward looking statements with respect to the Company. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, such statements involve risks and uncertainties and are based on information currently available to the Company. Actual results may differ materially from those expressed or implied by such forward looking statements. Factors that could cause actual results or events 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 related risks, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time including matters discussed under "Risk Factors" in the Company's short form prospectus dated April 9, 2010 and in the Company's Amended Annual Information Form incorporated by reference therein. These forward-looking statements are made as of the date hereof, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.


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