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

LONDON (AFX) - Zoo Digital Group PLC said it is on track to reach
profitability this year.
The group released first half results today which showed a 131 pct increase
in turnover to 3 mln stg but a widening pretax loss of 1.2 mln stg compared with
995,000 stg after the continued write-off of investment expenditure. The losses
were in line with expectations.
It also announced that it has reached an agreement with Universal Pictures
International to market and publish the interactive DVD game "Who Wants To Be A
Millionaire" in seven territories for Christmas 2004.
Chief executive Ian Stewart said ZOO's continued rapid progress in both the
innovation of its DVD technology and the commercial development of its two
business units is extremely satisfying.
ZOO Digital Publishing Ltd ("ZDPL") is well on track to reach the group's
goal of profitability this year and Stewart said the board remains optimistic
that the penetration of DVD-EXTRA following launch will result in ZOOtech Ltd
becoming profitable in 2005.
"With our DVD production technology we have proven that the product meets a
diverse demand across a range of market sectors and are currently in detailed
licensing discussions with a number of international multi-media brands and
major corporates," Stewart added.
He said ZDPL will be releasing a total of 30 games across a variety of
platforms for Christmas 2004.

newsdesk@afxnews.com

Zoo Digital (ZOO) hardened 1.25p to 13.5p after a positive statement and a deal with Universal for its Who Wants to be a Millionaire game.

Zoo Digital on target for profit

Reuters
Friday September 24, 2004
The Guardian

Zoo Digital, which produces interactive DVDs, is on track to reach profitability this year after more than doubling turnover in the first half, the company said yesterday.
Zoo, which publishes games for DVD players, PCs and PlayStation 2 and Xbox consoles, said it would release a game for DVD players based on the TV quiz show Who Wants to Be a Millionaire? in seven countries in time for the Christmas trading season.

The group makes most of its sales from seasonal gift-buying in the second half of the year.

Revenue rose 131% to 3m in the six months to end June. Pre-tax losses before interest, depreciation and amortisation widened to 1m from 730,000 the previous year as it increased research and development spending.

Zoo expected to post its first profit in 2003, but sales were hit by delivery delays. Analysts expect a full-year net profit of about 700,000.

http://www.guardian.co.uk/business/story/0,3604,1311563,00.html

Another tick up today. hopefully its going to be a start to decent SP before next results.

Up again its certainly looking good.

i don't understand why shares mag didn't cover their lastest results they must of been out in time?

it wont be till 2005 till the revenues really start to pick up from dvd extra and it should be plain sailing from there

yawn - very slow mover ths one - still moving in the right direction in a very uncertain market.

ZOO has been mentioned in the Investors Chronicle this week. Hopefully we should see volume building next week.

a zoo digital game is actually reviewed on bbc ceefax page552 (page2)this week, no need to guess which one it is!just take a look

yawn - god this moves very s l o w l y.....

at least it's moving in the right direction recently!!

ceefax games have reviewed another zoo game release again this week,(2 in two weeks)so its keeping zoo in the news at least,but i must say the reviews were only modest,nevertheless its news that keeps the investors interested,

Some buys today.

this ones a slow mover but at least it's holding up. It will soon get interesting as ZOO will be profitable 2005.

slight tick up today. will be good to see the result of the 30 odd titles being released for xmas.

skids

Make that few MORE ticks up skids. Come on ZOO can do it !

its only a matter of time,the directors have tens to hundreds of thousands invested in shares of there own money,and can only cash half of them,when the price reaches 15p and they can cash the other half at 30p,so they stand to lose more than we do,

I am unable to view the news item, "exercise of options". Bad gateway, contact system administrator. Is anybody else having this problem?

Here it is Walktall

Zoo Digital Group PLC
25 October 2004

Zoo Digital Group PLC ('the Company')


Exercise of Options


Zoo Digital Group plc announces that on 20 October 2004 it approved the issue
and allotment of 80,000 new ordinary shares in the capital of the Company
following an exercise of 80,000 share options under the Enterprise Management
Incentive Scheme at an exercise price of 2.75p per share.

These shares will rank pari passu with all existing ordinary shares.
Application has been made for admission of the new ordinary shares to trading on
the Alternative Investment Market of the London Stock Exchange and dealings are
expected to commence on 26 October 2004.

The ordinary shares referred to above are ordinary shares of 0.2 pence per
share. The number of shares in issue following admission is 279,457,830.


Enquiries:

Robert Deri, Chief Financial Officer
Zoo Digital Group plc Tel: 0114 241 3700

www.zoodigitalgroup.com