DVD EXTRA, the technology that should see this company through to profits and a very bright future.
DVD-Extra

During the year the Group accelerated its development of a revolutionary
authoring software for producing interactive DVD-Video discs that will play on
any standard consumer DVD player. We applied for and received a SMART grant
award of 188,000 from the Department of Trade and Industry to assist with the
research and development. DVD-Extra unlocks the hidden interactive capabilities
that exist in every player, and allows developers to produce titles that exhibit
many of the properties of multimedia CD-ROM on a standard, unmodified, DVD
player.

ZOO's principal offering is a product for authoring interactive DVD-Video discs
called DVD-Extra Studio. This tool operates in a similar way to multimedia
authoring products that are designed for creating CD-ROM applications for PC and
Macintosh, but produces DVD-Video disc images as its output. It performs a
similar function to so-called DVD authoring products that are designed
specifically for creating DVD-Video discs, but due to the patent-pending
authoring method it employs, it offers substantial cost savings for companies
that are involved in the production of DVDs and also enables more sophisticated
functionality to be developed.

ZOO will license DVD-Extra Studio to multimedia developers and Compression and
Authoring facilities. Charges will be levied on a pay-per-use basis, such that
customers will pay a fee to ZOO for each project that uses DVD-Extra Studio.

The Group has applied for patents to protect the core DVD-Extra technology and
is continuing to further develop and protect its intellectual property
worldwide.

Outlook

Following the successful fundraising of 1.5m gross through the share placing
which was completed on 2nd June 2003 the Group looks forward to positive
progression. The portfolio of products is expanding, with a focus on the
development of our own intellectual properties. The board believes that the
combination of publishing low risk licensed product and in-house own brands
together with the huge potential of DVD-Extra Studio places the Group in an
excellent position for a move to profitability and significant future growth.

The Group plans to exploit the DVD-Extra technology internationally and has
established an Early Adopter Programme consisting of around twenty companies
including Technicolor, Warner and Comchoice, leading to the first commercial
release of the product within twelve months. We believe that the uniqueness of
DVD-Extra and the filing of international patents will allow ZOO to build and
maintain significant differentiation over other authoring tool providers.

John Barnes, Chairman

Ian Stewart, Chief Executive Officer.G

possibly just profit taking,i'm not aware of any bad news

it could be the issue of options taking place tomorrow,its only 55,000 but they have been doing it quite regularly this year and it might be taking its toll to a small extent,although it should not have that much effect

Personally I think this fall in the past two days is just part of the nature of a small share like zoo.
Without any significant news or unusual trades the movement is difficult to explain.
I hold this share and will continue to do so. Perhaps the market makers are after stock and want to shake the tree.

ptholden......yes the advfn site offers only drivel thats why ian stewart invited two of us to attend a meeting at zoo digitals offices...the visit took place last week and very detailed questions were answered...erm which delegates from this site were invited !!??

i facer

would you like to share those questions & answers?

skids

The MM's know this could be a magic share of 2005, so lets shed a few holders!!
Others may be wanting to get out because they've held it for such a long time..
With LandRover taking adv of DVD Technology the price should be skyward once breakeven is reached... sit back, hold on and enjoy the ride...

skids, have a read through the posts (its free) www.advfn.com
the questions were very technical and detailed and obtained via a number of posters...skids here is a list of the questions asked, for the answers you'll have to trall through the posts, but you know i started on this site and just found that adv was more informative due to a much higher number of posters, however as with any bb its mostly bollox with some gems thrown in here and there....but having read both it is much much more factually enlightening....anyway here are the questions;



1) I know that DVD extra is covered by over forty international patents. But Id like to know what are the
Patents supposed to stop, and does this give us a huge advantage over competitors?

2) Why should companies adopt your tools as opposed to what seems to be competitions?

3) Where do you consider that the biggest market for DVD-extra lies? Is it games, films, education or marketing or other?
Which of these are we likely to see the quickest impact and could he predict when?

4) Have Zoo Digital made public ALL of the license agreements which have been signed to date.

5) Will Zoo Digital be making public ALL license agreements which may be signed in the near future?

6) What has been the reaction of the Hollywood studios?

7)Do you consider that you have delivered shareholder value with regard to announcement of Utilization Agreements to date, and do you consider that you can do so in the future?

8) Does DVD-Extra work on the new Blu-ray format which will allow 50 Gigabyte discs
If so what opportunities and pitfalls do you see with that format especially since the Play station 3 will have a blu-ray player built in.
Have the Hollywood studios approached Zoo and asked them to come up with a new DVD encryption code since the last worldwide one was cracked by a teenager. A 50 Gigabyte disc could obviously hold 6 - 12 films depending on quality, thus a big headache for the studios but a god send for pirates hence a new encryption code is a must.

9) What do you want from Zoo? Another Laura Croft Eidos, worldwide recognition or to be able to retire at 60?

10) Would you consider selling the company for the right price?

11) What are his ambitions and what drives him as an entrepreneur?

12) Do you play the DVD interactive games yourself?

13) How many DVD interactive products do zoo intend to launch into the North American market next year? Would they like to keep multiplying the DVD interactive games they release year on year? Why didn't they launch a Pop Idol interactive DVD?

14) With the advent of the mobile phone becoming the new game boy, do you have any ideas to counter this potential loss of revenue?


15) What is the movies section is for on the website

16) Why did WWTBAM have a RNS released and not the man U DVD?


17) You forecast that zoo would be in profit at the end of this year, are we still likely to be.

18) When we are in profit in 2005 when do you envisage the payment of dividends to shareholders.



19) Have you anything to say as regards the company called DVDi (out of California). Their product has more than a passing resemblance to DVD-Extra in terms of what they claim it can do i.e. very similar 'predictive pre-processing' technology etc. How does DVDi differ from DVD-Extra?

20) Imagination Entertainment claims that they are the market leaders in DVD games, do you agree? How does Zoo measure up to them? They claim that their corner of the market is worth about $100m in 2004 alone; what do you think the DVD games market is worth this year and how much of that market is Zoo hoping to gain in percentage terms?



21) How do you plan to fund the growth of DVD Extra in the future? Do you think you can fund development from cash flow/profits or do you feel fund raising will be necessary? What is the up to date cash position?



22) Is Zoo a possible takeover target and if it were what sort of company would be attractive to Zoo's management for future development prospects?"

23) What are your thoughts on the online shop at zoo?


24) How much does Zootech make per DVD movie which might have a game on it made using DVD Extra.


25) Universal remains the only major global DVD distribution partner. Therefore Zootech will need to secure others' support if it is to turn DVD-Extra into a global standard. Do you think this is achievable and if so what is the time scale?

26) I would like to know how I.S feels about this quote: - Its current status bears a remarkable resemblance to Eidos in its early years with a games publishing business being built up around a proprietary technology licensing business. Unlike Eidos, whose technology licensing efforts foundered, ZOO is expecting its ZOOtech division to become profitable in 2005

you know, here i cant even see the man united interactive dvd....are u all asleep or just up ur own arses like pkholden

Many thanks i facer. I'll check it out on advfn.

cheers
skids

(true info)

(options) rather than pay staff huge bonuses which will eat into there profits,
zoo by issueing options keeps every one happy in there incentives to work for the company and willing to stay on for the rewards,thats why they have a good dedicated staff of well over 100 people employed for the group who are dedicated and reluctant to move,

Looks like we have lift off!!! ;-))

Zoo Digital Group PLC
16 December 2004


For immediate release 7.00 AM December 16th 2004

ZOO Digital Group plc
('ZOO' or 'the Company')

ZOO ANNOUNCES UPDATE

- European Expansion with new office in Paris -
- New License Partner for Police Training Software -
- Crowned overall winner at Sheffield Business Awards -

ZOO Digital Group plc ('ZOO'), the entertainment technology and games publishing
company, today announced that its subsidiary ZOOtech has opened an office in
Paris and appointed Stephan Aubert as Country Managing Director. Stephan was
previously Sales and Marketing Manager (EMEA) for Media 100 and will head up
business development and sales in France, Italy and Spain. The new office gives
ZOOtech the base to carry on expanding its portfolio of DVD-EXTRA applications
for the European markets.

Our North American activities continue to expand and in particular with regard
to Hollywood and its DVD production needs where a number of significant contract
negotiations are underway. As a result ZOOtech is seeking to expand its US
office based in San Francisco and headed by Gordon Doran, President ZOOtech Inc
and is actively recruiting 2 further senior business development and sales
personnel.

ZOOtech also announces its first contract for 'DVD-EXTRA Access Control'. Detail
Technologies, a producer of police promotion testing and training programmes has
licensed 'DVD-EXTRA Access Control' for its portfolio of products. 'DVD-EXTRA
Access Control' gives content producers unique opportunities to control whom,
how and when content is accessed on DVD-Video titles. Detail Technologies will
use ZOOtech's unique software in order to control unauthorised copying of its
training and examination products.

Finally the Company announced that ZOOtech has been crowned the overall winner
at the Sheffield Business Awards. ZOOtech walked away with the unique trophy and
the innovation award as a great example to others of how to establish, manage,
finance, develop and constantly improve a business.
Commenting on the news, Ian Stewart, CEO said,

'The progress made since the launch of DVD-EXTRA STUDIO in April has been very
exciting. Much focus has been given to the requirements of the North American
market, and the new employees will help maximise the potential of DVD-EXTRA
across a number of market segments in the US.

Stephan Aubert brings with him a wealth of experience having worked in
continental Europe for many years and gives us the opportunity to open the very
creative French market from the Paris office.

We are particularly encouraged by our first contract for the Access Control
product as this emphasises our wider patent portfolio which we are looking to
capitalize on.'

- ends -

For further information please contact:

Ian Stewart, CEO
ZOO Digital Group plc
0114 241 3700

James Chandler/Grace Marriner
Beattie Financial
020 7398 3300

For such a small company to open a brand new office, I think this is exceptionally good news for ZOO and I look forward to seeing further progress very soon - xmas sales.

skids

over the last year the staff has doubled from 60 to over 120

akel44,

Its all encouraging as far as I'm concerned, and I think the DVD authoring suite will be a big earner for multimedia and film production. They may make some money on DVD style games, but I doubt it. The money should flow from other areas IMO. Next results should be interesting.

skids
Marques-Bros Racing

anyone any ideas what 2005 holds for zoo?

No
If i did I would be a "Profit"
Fair to middling i predict;)
Or a complete f**k up

skids,

you must remember zoo were sending out glowing reports for 2003,
about profits,but when the finals came along,no such thing happened,
so maybe this time,it might come true as they seem in a stronger position,
last year they partly blamed it on delays,(premier manager etc),this year they could blame it on the purchase of hothouse,but all in all 2005 will be the
turning point one way or the other,zoo has never made a profit since its been in business,so if it happens this year,they could well be on there way to the price it was in 2000 (74p), i hope so

I've just tried buying a copy of who wants to be a millionaire and every shop has sold out which must be a good thing for zoo!
According to various retailers it has been a must have item this xmas.
Fingers crossed for some good results soon.

Sold out! They probably only distributed a 1000 copies!

does anyone know when the results are due for ZOO?

cheers,
skids

skids

they were put back to march-april (3 months)so the next interims will include a 6 month period plus a 3 month update