BKN International AG
11 January 2007

Press Release                                                    11 January 2007


                              BKN International AG
                                        
                            ("BKN" or "the Company")


  BKN Achieves two major breakthrough deals in Canada, securing not only a new
            Home Entertainment Deal but also a Free-TV Broadcast Deal

BKN International AG, a global animation company engaged in the distribution and
marketing of animated children's television programmes and related consumer
products, reports today that its wholly owned US subsidiaries BKN Home
Entertainment Inc and BKN New Media Inc have signed license deals in Canada.
Morningstar Entertainment Inc, one of the leading independent home entertainment
distribution companies for DVD distribution rights across Canada, has licensed a
number of titles for DVD distribution and Tele-Quebec (Societe de Telediffusion
du Quebec) has secured a new major free-TV broadcast deal for the broadcast of
BKN's CGI HD animated features.

BKN's contract with Toronto-based Morningstar Entertainment Inc grants them the
rights to distribute the following 14 new titles throughout Canada:

   * Ali Baba and the Forty Thieves: The Lost Scimitar of Arabia - 1x72'
   * Kong - Return to the Jungle - 1x80'
   * Legend of the Dragon Volume 1 - 13x24'
   * Legend of the Dragon Volume 2 - 13x24'
   * Legend of the Dragon Volume 3 - 13x24'
   * A Christmas Carol: Scrooge's Ghostly Tale - 1x48'
   * Robin Hood: Quest for the King - 1x48'
   * Jungle Book: Rikki-Tikki-Tavi to the Rescue - 1x48'
   * The Prince and the Pauper: Double Trouble - 1x48'
   * Alice in Wonderland: What's the Matter with Hatter - 1x48'
   * The Three Musketeers: Saving the Crown - 1x48'
   * Kong: The Animated Series Volume 1 - 14x24'
   * Kong: The Animated Series Volume 2 - 13x24'
   * Kong: The Animated Series Volume 3 - 13x24'

"We are delighted to join with Morningstar Entertainment Inc and have high
expectations that as one of Canada's most respected DVD distributor's they will
drive significant volume with retailers in this important market" said Matthew
Graham-Clare, BKN Home Entertainment MD.

Ron Moring, President of Morningstar Entertainment added "BKN is providing us
with fantastic, high quality properties in both English and French languages
that will have significant market potential in Canada. We are looking forward to
building the BKN kids brand with all our retail partners beginning in April    
2007."

BKN's contract with Tele-Quebec is for the broadcast in French of 6 x 48 minute
CGI HD animated features including:

   * A Christmas Carol: Scrooge's Ghostly Tale
   * Robin Hood: Quest for the King
   * Jungle Book: Rikki-Tikki-Tavi to the Rescue
   * The Prince and the Pauper: Double Trouble
   * Alice in Wonderland: What's the Matter with Hatter
   * The Three Musketeers: Saving the Crown

"This Canadian broadcast arrangement represents a strategic step to continue
launching BKN's properties in this key North American market," said Nicola
Andrews, Sales Director of English, German and French speaking markets and
Russia. "We are pleased to welcome Tele-Quebec on board which is an excellent
programme home for our titles."

Tele-Quebec added "BKN's quality children's and family entertainment programmes
are great classic titles that fit nicely with our already strong portfolio. Our
viewers will love these state-of-the-art CGI HD classic features that are
available in this format for the first time ever."



                                      -Ends-



Enquiries:
BKN International AG
Allen Bohbot, Chief Executive Officer                   Tel: +44 (0)20 7269 8683
allen.bohbot@bknkids.com

Wayne Mowat, Chief Financial Officer                    Tel: +44 (0)20 7269 8687
wayne.mowat@bknkids.com

Sascha Ziemann, Finance Manager                           Tel: +49 221 5540 5190
sascha.ziemann@bknkids.com

Laura Tapias, Managing Director                            Tel: +34 93 368 18 00
Latin and Italian markets
laura.tapias@bknkids.com

Nicola Andrews, Director of Sales                       Tel: +44 (0)20 7269 8677
English, German, French speaking markets and Russia
nicola.andrews@bknkids.com

Matthew Graham-Clare, Managing Director                 Tel: +44 (0)20 7269 8678
Home Entertainment
matthew.graham-clare@bknkids.com

www.bknkids.com

Morningstar Entertainment Inc.
Ron Moring, President                                    Tel: +00 1-416-433-0202
ron@morningstarent.com

Jason Moring, VP Sales & Marketing                       Tel: +00 1-416-433-0202
jason@morningstarent.com
www.morningstarent.com


Broker/Designated Sponsor:
Hanson Westhouse Ltd                               Nominated Adviser & UK Broker
Richard Baty                                             Tel: +44(0)20 7601 6100
Ed Burbidge


Seydler AG in Germany                                         Designated Sponsor
Rene Parmantier                                            Tel: +49 69 92054 130
rene.parmantier@seydler.de

Deutsche Bank                                                      German Broker
Jens Hagemann                                              Tel: +49 69 910 34495
jens.hagemann@db.com


Media Enquiries:
SSA Public Relations for trade & industry press
Karine Fouchet                                         Tel: +44 (0) 7958 283 556
kfouchet@ssapr.com
--------------------


Notes to editors:


About BKN:

BKN International AG is a global animation company engaged in the distribution
and marketing of animated children's television programmes and the marketing of
related consumer products (licensing and merchandising) in all forms. BKN has
worked on numerous successful animation projects.

The Company is currently listed on the Deutsche Bourse and AIM and it operates
all over the world. BKN has successfully negotiated distribution deals in over
95 countries and territories in the children's programming market.

The Company's Film Library includes:

- Legend of the Dragon 
- Robin Hood
- Kong - The Animated Series 
- Zorro: Generation Z
- Kong - King of Atlantis 
- Roswell Conspiracies
- Kong - Return to the Jungle 
- Dork Hunters from Outer Space
- A Christmas Carol - Jungle Book



About Morningstar:

Since inception in 1992, Morningstar Entertainment has pioneered retail and
consumer acceptance for any and all styles of programming. With
non-conventional, out-of-the-box marketing strategies Morningstar's success
extends to promoting television, film and niche market properties, with over
1,000 DVD titles in our current library. Morningstar currently distributes to
all mass merchant and specialty retail outlets in Canada through direct
relationships and distribution. For more information please visit
www.morningstarent.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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