PRE-CLOSE TRADING STATEMENT – YEAR TO JUNE 30, 2006

Halifax, NS – 10 July 2006 – DHX Media Ltd. (“DHX Media”, “the Group”) (AIM and TSX: DHX), a leading international producer and distributor of television programming and interactive content with an emphasis on children, family and youth markets, is providing an update on trading for the year ended 30 June 2006. DHX Media was admitted to AIM and listed on the TSX in May. Halifax Film merged with Decode Entertainment creating DHX Media at the time of the listing.

Synergies from the merger of Halifax Film with Decode Entertainment have already begun to accrue, with the assignment of distribution rights to Decode Entertainment for all seasons of Halifax Film’s POKO and Bo on the Go productions.

Recent Business Developments
Since the merger and listing of its shares on May 19, the Group has secured several new commissions and series renewals, and sales from its libraries.

Series Renewals and New Commissions
Planet Sketch, a Canada-U.K. co-production between Aardman Animations and Decode Entertainment, was commissioned by Teletoon Canada and CITV in the UK for a second season of 13 episodes of 11 minutes (“13×11’”) of the very popular animated series with international pre-sales already secured with ARD (Germany), LUK (Spain), Jetix (cable satellite rights for Italy, Scandinavia, Eastern Europe, Middle East and Netherlands), Scandinavian public broadcasters SVT (Sweden), NRK (Norway) and TV2 (Denmark), Nickelodeon France, Australian Broadcasting Corporation and VRT (Belgium).
• CBC commissioned the second season of the Halifax Film co-production Lunar Jim.
• The Family Channel commissioned Decode for a third season of its live action “tween” series, Naturally Sadie (13 x 22).
• YTV commissioned Decode for a CGI animation action/comedy series, Urban Vermin (26×22).
• CBC commissioned Halifax Film for a first season of 20 episodes of Animechs.
• CBC commissioned a half-hour, Halifax Film comedy pilot that will commence principal photography on July 15.

Library Sales
The Group made several sales in the final quarter which highlighted the enduring, international value potential of the Group’s libraries, specifically:
Naturally Sadie to Nickelodeon International for a second season for its channels in Spain, Italy, Scandinavia and Israel. E-Vision in the UAE and RTE Ireland have also ordered all 52 episodes; and
• Cartoon Network in Japan renewed its license for the first 52 x ½ hours of Angela Anaconda and also licensed the remaining 13 x ½ hours of the series.

Production Updates
• CBC announced that season 14 of Halifax Film’s This Hour Has 22 Minutes will be in its autumn line-up;
• Principal photography commenced on Halifax Film’s theatrical adaptation of Shake Hands With the Devil: the Failure of Humanity in Rwanda on June 20 in Kigali;
• The first of six episodes of Halifax Film’s daytime drama North/South premiered on CBC on July 4.

The Group remains committed to executing its stated strategy of building its library of primarily children-focused content as well as seeking expansion by acquisition internationally, where appropriate.

DHX Media expects to announce its preliminary results for the year to 30 June 2006 at the end of September 2006.

For more information, please contact:

DHX Media -Canada 
David A. Regan – Corporate Development and Investor Relations
+1 902-423-0260

College Hill – London +44 (0) 20 7457 2020
Adrian Duffield/Carl Franklin

About DHX Media Ltd.
DHX Media Ltd. is a leading international producer and distributor of television programming and interactive content with an emphasis on children, family and youth markets. DHX Media Ltd. shares trade on AIM and are listed on the TSX, the Toronto Stock Exchange. DHX Media’s production companies, Decode Entertainment and Halifax Film, are the producers or co-producers of 11 original television series or theatrical releases currently commissioned for production and maintain a growing library of over 1,100 half-hours of children and youth-oriented television productions.

Disclaimer
Certain statements herein may constitute forward-looking statements, including those identified by the expressions ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘could,’’ ‘‘anticipate,’’ ‘‘believe,’’ ‘‘plan,’’ ‘‘estimate,’’ ‘‘potential,’’ ‘‘expect,’’ ‘‘intend’’ and similar expressions to the extent they relate to the Company or its Management. These statements reflect the Company’s current expectations and are based on information currently available to Management. These forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results or events to differ materially from current expectations, including the matters discussed under ‘‘Risk Factors’’ contained in the Company’s prospectus dated May 12, 2006. 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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