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

azhar
you can get the full read up here,

http://www.ofex.com/cgi-bin/news.cgi?action=CoStory&ISIN=GB00B069WS24&NewsID=20970

Zoo Digital Group PLC
14 April 2005


Embargoed for 0700 on Thursday 14 April 2005

ZOO DIGITAL GROUP PLC
('ZOO' or 'the Group')

UPDATE ON GAMES PUBLISHING

ZOO Digital Publishing Ltd ('ZDPL'), the games publishing division of ZOO
Digital Group plc, today announced that it has secured the rights to publish a
portfolio of twenty-two games from Destination Software Inc ('DSI'). The deal
brings the total number of games in ZOO's active portfolio to over 60. The deal
is estimated to deliver around 3 million in games sale revenues to ZOO over the
next two years.

In a separate agreement announced today ZOO has extended it relationship with
Universal Pictures and agreed to publish the next version of its popular
football DVD Game 'International Championship Challenge 2'.

DSI Games Portfolio

ZOO has secured the rights to publish twenty-two DSI products over the next two
years. Games featured in the agreement include four new titles for the recently
released Nintendo DS handheld games console as well as six for the established
GameBoy Advance ('GBA') device. Under a separate agreement ZOO have secured the
rights to a series of twelve compilations from DSI for GBA consoles. Each
compilation will include three games on one cartridge. These games will start
shipping from June 2005. In both cases ZOO will pay DSI an advance against a
royalty on sales of the games.

International Championship Challenge 2

Universal Pictures has secured the rights to publish the next version of
Championship Challenge for Interactive DVD, this follows the success of the
first release that Universal also published. The game will be released for this
Christmas 2005. ZOO will be paid a royalty for each unit sold.

Ian Stewart, Chief Executive of ZOO Digital Group plc, commented:

'We are extremely pleased to be able to extend our partnership with DSI which
demonstrates their confidence in our ability to distribute its product . ZOO has
built a solid reputation in the Nintendo hand-held market and we now have the
products to exploit the already successful new Nintendo DS. The games further
underline the quality of our games portfolio and will help the continued growth
of our publishing business.

Universal's confidence in the Interactive DVD market is again confirmed with
them committing to International Championship Challenge 2. We expect to see lots
of further activity on this side of the business in the near future as we secure
more rights.'

- ends -

Good news & a good start to the day. May it continue. LOL

No movement on the SP front tho. :-o EK has gone long on ZOO according to UK-analyst which is good news.

some news just in, should see a climb over the days,
this makes for a good read,

http://www.marketwire.com/mw/release_html_b1?release_id=84757

SAN FRANCISCO, CA and SHEFFIELD, UK -- (MARKET WIRE) -- 04/18/2005

ZOOtech Promises Paradigm Shift in DVD Development
With Launch of DVD-EXTRA STUDIO Version 1.6

New Version Fuses Linear and Interactive DVD Development
Into a Single Tool

Interactive DVD technology pioneer, ZOOtech, today announces a brand new version of DVD-EXTRA STUDIO to be released on April 25, 2005,
worldwide.
The release of Version 1.6 will represent the biggest technological
advance since the original software was launched almost a year ago.
For the first time, DVD-EXTRA developers will be able to create both
linear and interactive DVD content: in effect, products can now be
created with just a single tool, reducing cost and improving efficiency.

Conventional (or linear) DVD content is created manually. Using the same process to create complex interactive content often presents
insurmountable difficulties, thereby necessitating the use of
DVD-EXTRA STUDIO. Version 1.6 adds functionality to the core
software that allows developers to use the same tool to create
both conventional and interactive content.

Developers stand to benefit significantly from this new release.
DVD-EXTRA STUDIO 1.6 allows linear titles to be developed more
easily
and efficiently than by using conventional authoring tools.
Empowered with a tool that gives them far more flexibility
and creativity, developers can design and provide far more
engaging experiences for consumers.


Highlighted Links
http://www.zoo-tech.com



"The difference between 1.5 and 1.6 shouldn't be underestimated.
We have created content using 1.6 that simply wouldn't have been
possible six months ago. The response to the demos we have put
together has been nothing short of phenomenal. We are confidently
predicting DVD-EXTRA STUDIO will very soon become an industry
standard," said Stuart Green, Chief Technical Officer, ZOOtech.

"To date, the discussion has been about creating interactive content,
and we have certainly seen some interesting products come to market
using puzzle, game or quiz mechanics. The difference with Version 1.6
is that we are now talking about how to make traditional content
interactive: our customers are now able to provide deeper interactive experiences that will appeal to the mainstream. The implications for
many market segments (not least corporate and music DVD) are significant," said Cees Zwaard, Chief Executive Officer, ZOOtech.

ZOOtech is already working with a select group of production companies
and developers in Hollywood and other major digital media centres
where DVD-EXTRA technology is being used to create sophisticated content
in unique and exciting ways.

http://www.advfn.com/cmn/fbb/thread.php3?id=7994267

This is much better!

SHEFFIELD TODAY NEWS: APRIL 22nd

Sheffield-based ZOOtech has made a quantum leap forward
with its award-winning DVD-EXTRA STUDIO software,
created to cut the cost, complexity and time taken to produce
interactive DVDs that work with domestic players and TVs.
ZOOtech is wowing US entertainment giants with an expanded
version of DVD-EXTRA STUDIO which allows them to produce
complete DVD packages, films, interactive games and new
entertainment concepts, being kept under wraps until products
are ready.
Stuart Green, ZOOtech chief technical officer, uses the DVD of
Garfield the Movie to show what had to be done before the
new version was developed.
Film and interactive bonus material had to be developed
using different software, one package for the film and
DVD EXTRA for games. They then had to be "glued" together.
ZOOtech's breakthrough allows the film, chapter points,
smooth transitions between the chapters and interactive
material to be developed.
"We have created content using 1.6 that simply wouldn't
have been possible six months ago. The response to the
demos we have put together has been nothing short of phenomenal.
We are confidently predicting DVD-EXTRA STUDIO will very soon
become an industry standard," says Mr Green.
Chief executive Cees Zwaard said: "We are now talking about
how to make traditional content interactive.
Our customers are able to provide deeper interactive
experiences that will appeal to the mainstream."
ZOOtech is working with production companies and developers
in Hollywood, and other major digital media centres.

ZOO now back on the move in the right direction of the back of great news (see RNS).

Published: 0:16:19 Wednesday 29 June 2005

Zoo Digital is hoping it will start to see the fruits of its new interactive DVD technology and with 50 licences out there, a number of products should see the light of day this year.

Shares (ZOO) rose 0.125p to 10.5p, valuing the business at 33 million.

As we reported in February, Zoo had some delays closing deals last year, which has made it a little more realistic for this year. The companys main problem is that its revenue model for its new DVD-Extra technology, which enables interactive applications to be written for DVDs, is one of earning royalties on products developed using the technology. However, it has no control over how many products its customers will develop or when they will see the light of day.

Chief executive Ian Stewart told Citywire that the company now has 50 licensees for the technology, and internal forecasts reckon as many as 150 products could be in development at this time.

The agreements range from using DVD-Extra for quiz shows, education and reference products, marketing and corporate products and interactive DVD games to the creation of a variety of content and bonus material for the film industry, including a number of Hollywood studios, which is a key target for Zoo.
The company is very close to signing a deal with one of the major studios, whose delays in signing deals last year were the cause of Zoos February profits warning. However today the company said it has signed documentation and a financial framework agreed that should bring in around $1 million (560,000) of revenues in this financial year.

Stewart said Zoo was just waiting for a signature, but it learned the hard way last year that large companies can be very slow in putting pen to paper.

For the year to December, turnover rose by 149% to 12.7 million. The more established Zoo Digital Publishing, which publishes DVDs, games and mobile content, including its own interactive DVDs such as Who Wants to be a Millionaire, made a maiden profit before interest, tax, depreciation and amortisation of 498,000, although group loss before write-offs were 1.6 million up from 955,000 due to increased investment in the DVD-Extra software.

After the year-end, the company raised 3 million through a placing of 37.2 million shares at 8.5p

The core publishing business still looks pretty interesting, with games such as Millionaire and a new music quiz likely to sell well this Christmas.

More importantly, the technology business should start to show its worth this year. Interactive DVD is a new concept that has only really been around for about a year, and is likely to become ever more popular for many different applications, including entertainment, marketing and education. Zoos patented and patent-applied for technology stands a good chance of becoming the de facto standard for interactive DVD, which should make the next few years very interesting.

We said in February and re-iterate again today, that this is high risk with plenty of unknowns still, but for risk-takers it could still be worth a punt


http://www.citywire.co.uk/

Still holding and awaiting.

Please remember patience pays off in the long term.


cheers GF.

Chaps,

Dont be sucked in by this baby. The only winners
are the directors who sell & sell in the market
after receiving discount allotments from time to time.
one to stay clear of!!

Transco - Always happy to hear bearish views on a stock but they need to be grounded. Why is this one to stay clear of, in your opinion?

the directors can only sell half their options at 15p
and the other half at 30p if they wish

Which sounds more bullish to me. Transco?

Totally agree queen1 , the trouble with zoo is everyone who gets on board dosen't know the history and the potential. they just expect to buy for 10p and sell for 50p within a month. if only it was that easy!!!!

Yeah, I've been waiting for that 50p for 2 years now :-) !!

Same here but i'm waiting for 1 so guess i've got another 2 years !!!
I do think when the market wakes up to zoo the sp will rocket.One day we will get the rns we've all been waiting for .Until that day comes the sp will stick around these levels.The directors can only exercise a percentage of there options at 30p.The way i look at this if they were in it for the short term quick buck they could soon get the sp up to 30p and cash in. They haven't which makes me think they are in this one for the long term.Zoo have a tremendous technology which could be sold around thew world if marketed correctly. The only problem i see is they have the future funding and marketing techniques to make it work.If not then i guess one of the hollywood studios may swallow them up!!

http://www.dexia-bil.lu/webquotes/info_index.asp?lang=en&page=maract&idnews=20050818101467&pageto=3

Historically the company has granted massive share options at regular
intervals and the shares have been dumped in large quantities whenever
the price rises.