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

I dont have a clue if this one will be taken over.

cheers GF.

u still involved in this dud gf.

i looked at it more than 2 years ago and thought it was crap then

Well feel free to pop back again in 2 years scotinvestor. Here's hoping those future comments will be as balanced & incisive as today's.

What's your current reading, gf and Queen? Pleased to see the dead wood cleared and with a payment which should cover redundancies at least.
Eric

Obviously tough times recently Eric but I think the detail contained in the announcement is a positive move. Patience may be required and for those of us who originally bought in above 10p it will be a bit of a slog but we're going in the right direction.

Contract

RNS Number:7687J
Zoo Digital Group PLC
02 October 2006


2 October 2006

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

ZOO AGREES TEMPLATED AUTHORING CONTRACT WITH WALT DISNEY

ZOOtech Ltd ("ZOOtech"), the DVD technology division of ZOO Digital Group plc,
today announces that it has signed a contract with Walt Disney Pictures and
Television ("WDPT") to license its unique Templated Authoring System for the
automated production of DVD-Video discs for new and existing film titles. In
addition, WDPT has renewed its licence to use ZOOtech's Menu Regionalization
Tool for a further year.

For further information please contact:

Up 27% today - is ZOO on the recovery trail?

ZOO Bid: 70p Offer: 75p Change: 20.5

Thanks Bosley for mentioning it on your XMAS thread.

Just dived in for 1000 shares at 77p anyway. Anyone else joining me?

Bought some at 64p earlier today...........been watching for a while as I have some at a higher price than this!

Thanks ST-looking into this one.