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HALIFAX, Feb. 15 DHX Media Ltd., a leading independent international producer and distributor of television programming and interactive content, announces its unaudited consolidated interim results for the second quarter ended December 31, 2007.

Michael Donovan, Chairman and CEO, commented, "We are again very pleased to announce continued year-over-year quarterly growth for the second quarter of 2008 while we continue to deliver on our strategy. During the quarter the Company recognized the revenue associated with 55.5 half-hours of production and $2.5 million in distribution deals. Also, we are pleased to have announced the purchase of Studio B Productions which will allow DHX to benefit from several new broadcaster relationships, expanded production capabilities and a greater supply of children's programming from which we can generate future distribution revenues. These strengths will contribute to each of our four strategic drivers, namely increasing merchandising & licensing revenue, expanding the television and film library, leveraging our international distribution capabilities and exploiting new content platforms."

Operating Review
DHX continued to deliver on its strategic objectives during the second quarter of fiscal 2008. The Company recognized revenue for a record 55.5 half-hours of production during the quarter, with 14 of half-hours relating to production that was delivered to broadcasters in fiscal 2007 and Q1 2008, but for which license periods commenced during the second quarter. The Company's distribution group made a number of notable third party rights acquisitions during the quarter, including the worldwide television and home entertainment distribution rights to Turner Broadcasting's My Spy Family. This rights acquisition represents just one of many successes in leveraging the Company's distribution capabilities. The assignment of a sub-licensee in the UK for Franny's Feet also demonstrates momentum for the Company's merchandising and licensing strategy.

Financial Results
Revenues for Q2 2008 were $9.8 million, up from $6.7 million for Q2 2007 an increase of 47%. The increase was largely due to increases in revenue from the Company's production and distribution division. The Company benefited from previous fiscal 2007 deliveries in the amount of $350,000 in proprietary production revenues where the license periods commenced in Q2 2008.

Proprietary production revenue for Q2 2008 was $6.4 million, up 83% over the $3.5 million for Q2 2007. This represents 55.5 half-hours of proprietary film and television programming, an increase of 21% over the 46 half-hours for Q2 2007. In addition, as of Q2 2008 the Company has to date delivered $3.8 million in potential revenue from 35 half-hours of proprietary television programs, where the license periods had not yet commenced by December 31, 2007, and therefore the revenue recognition criteria have not been met to recognize their associated revenue in Q2 2008. These license periods are scheduled to commence throughout fiscal 2008 and 2009 and will be recognized in the corresponding quarters, when the license periods have commenced and all revenue recognition criteria have been met.
Distribution revenues for Q2 2008 were up 21% to $2.5 million (Q2 2007 - $2.0 million). As 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: This Hour Has 22 Minutes, Franny's Feet, Naturally Sadie, Urban Vermin, and Planet Sketch. Six Months 2008 distribution revenues also included theatrical box office revenues for the feature film Shake Hands With the Devil.
Music and royalty revenues for Q2 2008 dropped slightly to $92,000 (Q2 2007 - $136,000) while new media revenues were generally in line with Q2 2007 at $114,000 (Q2 2007 - $139,000).
Financing activity during the quarter included securing a maximum authorized $70 million production and operating revolving credit facility (see note 9 to unaudited consolidated interim financial statements for second quarter ended December 31, 2007 for details).

Outlook
Coming off Q2 2008 the Company's balance sheet remains strong and Management believes the Company is in a solid position for the remainder of Fiscal 2008. Management continues to focus on its core values and using its strengths to take advantage of present opportunities and to create further value for shareholders. With the proceeds of the Company's November 13, 2007 Unit Offering, which raised $17.6 million in gross proceeds (before expenses), now at work, Management remains focused on increasing shareholder value through further organic growth and acquisitions. The Company anticipates using the proceeds of the Unit Offering to move forward on the acquisition front in Fiscal 2008 and expects to be in a position to report on this in the coming quarters. In particular, the Company believes it is well on its way to realizing its contemplated strategic initiatives, including revenue growth in production and distribution, increasing profitability metrics, expanding the Company's presence in international markets, leveraging the Company's experience to focus on children, youth, and family content and merchandising, and undertaking further potential synergistic acquisitions. In this regard, for Fiscal 2008, the Company remains focused on organic growth and growth through acquisitions and is currently exploring a number of opportunities to expand its revenue platform.

For the remainder of 2008, the Company expects these deliveries along with prior deliveries to represent double-digit production revenue growth, perhaps in the 20-40% range, as some of the Company's previous quarter's television deliveries are simply awaiting their license periods to commence.
Specifically, for Q3 2008, the Company has over 50 half-hours of contracted proprietary programs which are scheduled for delivery and for the license periods to commence. The Company's historic average production revenue value (once the license period has commenced) per half-hour of television programs is approximately $0.100-$0.175 million and Management anticipates the average production revenue value per half-hour actually delivered with the license periods commenced for the remainder of Fiscal 2008 to be in this range.

The Company is expecting between $2.0 to $4.0 million in producer and service fee revenue as it benefits from the integration of the Studio B acquisition, which is based on existing service contracts in progress for the second half of Fiscal 2008. The Company expects a gross margin range of 15-25% for this producer and service fee revenue.

The Company is also expecting, somewhat based on contracted sales delivered and awaiting their licensing periods to commence (See "Critical Accounting Policies-Revenue Recognition" section of the Q2 2008 MD&A for further details), further distribution revenue penetration on a number of additional titles in the current slate and from the library, during the remainder of Fiscal 2008. This represents anticipated double-digit growth, perhaps in the range of 20-40% over the distribution totals for the first half of Fiscal 2008. For Fiscal 2008 other revenues, including music and royalty and new media revenues, are expected to have moderate growth.

Further synergies from the recent acquisition of Decode and Studio B are demonstrated through healthier gross margins as shown by the strong margin for Q2 2008 of 35%. For Fiscal 2008, gross margin is expected to be in the 25 40% range. For Fiscal 2008, Management expects the integration of Decode and Studio B to continue to result in further synergies and revenue growth in all categories.

In the last half of Fiscal 2008 and the first half of Fiscal 2009, the Company anticipates some further revenue growth, specifically in the category of music and royalty revenues, as it embarks upon its M&L relationships with PLAYSKOOL, a division of Hasbro Inc., for the Company's preschool property Franny's Feet and Alliance Atlantis on another preschool property Lunar Jim.
The Company is also focused on leveraging other existing proprietary properties for additional M&L revenues.

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, Halifax Film and Studio B Productions, are the producers or co-producers of 20 original television series and theatrical releases currently commissioned for production and maintain a growing library of over 2,150 half-hours of mostly children and youth-oriented television productions. DHX Media

For further information:
DHX Media, Canada: Dana Landry, Chief Financial Officer, +1 902-423-0260;David A. Regan, EVP, Corporate Development & IR, +1 902-423-0260; AIM Nominated Advisors: Canaccord Adams Limited: Neil Johnson, +44 (0) 20 7050 6500