In August 2007, ZOO acquired
the authoring business of Scope Seven, providing the group with a base near its
key customers in California and a broader service offering.

Rumor going round today of a bid for the company, hugh 'B' trades gone through this morning, wait for confirmation RNS later.

The whole Group or part of? (ie. ZDP publishing side / ZOOtech DVD software side). Any ideas?

If it were, it would only be for the DVD software IP. The publishing side has no real assets. If they do not get bought out, they are likely to go bust.

Lots of buyers today, MM's hold sp back but will tick back up

TheMaster
can you post the rumour

Will not name my source, but its 'Disney' who want the ZOOtechDVD technology

I lost a lot. Thanks god I sold earlier.
BTW, why its name is ZOO?

Fremantle plays cards right with game shows

A renaissance in game show titles has prompted FremantleMedia to sign a raft of deals with software and DVD developers for UK shows such Play Your Cards Right and Blankety Blank, as well as a deal with Sky for an interactive TV game.

Fremantle has licensed rights to the UKs largest digital pay-TV platform, Sky, to create an interactive TV game based on the classic show Strike It Rich. The game, currently in development, will replicate the shows format and is expected to launch on the platform towards the end of this year.

In addition, software developer DVD Pro has been granted rights to hit global formats Play Your Cards Right (UK, Eire, France, Spain and Italy) and Blankety Blank (UK and Eire) while Circle has acquired rights to classic game shows The Price Is Right (UK, Eire, France, Spain and Italy) and Blockbusters (UK and Eire). The games will be available for retail from October.
----

So the DVDExtra licensees continue to sign up DVDGame deals ie. Circle and DVD Pro Ltd : btw don't confuse DVDPro with Imagination's software DVD Game Pro - DVDPro Ltd licensed DVDExtra through Element Interactive responsible for the following games last season:

Gary Lineker's Football Challenge, The TVTimes Ultimate Soap Challenge and The Great British Pub Quiz Copyright DVD Pro Limited 2005.

Interesting reference to Sky within this article, especially with ZOOtech stating that DVDExtra was being developed for "some on-demand formats" ...

Could have a bidding war between Disney/Sky, very interesting next few days

Zoo Digital Group PLC
01 February 2006


1 February 2006

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

STRATEGIC AND MANAGEMENT REVIEW

Further to the announcement issued on 23 January 2006, ZOO announces that it has
completed its initial strategic assessment and management review.

Strategic Review

ZOO Digital Publishing Ltd ('ZDP'), ZOO's games publishing business currently
focuses on two areas of activity:

Traditional video games publishing on platforms such as Playstation,Xbox, PC etc
The creation and publishing of interactive DVD-Video (iDVD) titles

Given the weak prospects for the traditional video games publishing market, ZDP
will significantly downscale its video games activities. In addition the Group
will undertake a number of cost saving measures in video games operations, many
of which have already been implemented.

Conversely, the interactive DVD business is demonstrating excellent potential
for growth. Sales of iDVD products in general performed well over the Christmas
period. ZDP's three products captured 25% of the iDVD market by value with 'Who
Wants To Be A Millionaire' at number two and 'Telly Addicts' at number four.
Therefore the focus of ZDP moving forward will be on iDVD activities and the
Board is considering its strategic options for ZDP as part of the overall
review.

ZOOtech, the technology division of the Group, continues to make progress with a
number of significant contracts and priority will be given to ensuring such
opportunities will deliver ongoing revenues. Given the potential growth of the
software into the US market ZOOtech is actively seeking a strategic partner to
maximise the opportunity. In addition, ZOOtech's DVD-EXTRA technology was used
to create nine of the top ten iDVD titles sold in the UK over Christmas. Dr.
Stuart Green, who pioneered the creation and application of ZOOtech's unique DVD
interactive software technology, will be responsible for leading this strategy.

Management Review

Ian Stewart has stepped down from his role as CEO and Dr. Stuart Green,
currently Chief Technical Officer, will replace him with immediate effect. Ian
Stewart will take on a role as Non Executive Director and support Stuart Green
in the completion of the strategic review and implementation of the changes
assisted by the board including the other independent Non Executive Directors.

Dr Green commented:

'Throughout our discussions with Hollywood studios and production facilities it
has become clear that ZOOtech's software can make a significant difference to
the DVD production process for both current and next generation Video Discs. I
look forward to leading this progression in my new role and thank Ian Stewart
for his continued support'.

Ian Stewart commented:

'The changes made will ensure that the Group is focused on the areas that will
deliver growth whilst positioning ZOOtech for its progression in the US. Our new
management structure and strategic aims will help us achieve this and I very
much look forward to supporting Stuart in his new role'.

- ends -

Enquiries:

Dr. Stuart Green James Chandler/Helen Thomas
ZOO Digital Group plc Weber Shandwick Square Mile
0114 241 3700 020 7067 0747

John Llewellyn-Lloyd/Alasdair Robinson
Noble & Company Limited
020 7763 2200

Positive piece in Shares today. Led me to trawl through the announcements. Problem, as all will know, with the video division is not surprising. Encouraging that DVD progress is good; also I've long felt that the technology division was the core strength of the company. OK, caught with their pants down (in the monkey enclosure?). But the fall is overdone, surely. If they miss profitability this year then no doubt next year will be profitable with better business direction. With a t/o assumed around 15m then the cap. should be 15m min and, if growth is resumed then could be moving back towards the previous 30m figure.

I conclude that the fall is away overdone. Have put my money where my head/mouth are and bought a wee stake at 3.09p

Eric

My ZOO buy at 3.09p shows as a sell and clearly not the only one.

Eric

Still shaking out so didn't get in at the bottom. Never mind, the value is there. Can't quite understand why the quote was widened so much; I think though that there was a balance of buys and sells and the MMs have been clearing substantial sell order(s). Incidentally, is there anyone out there interested in this share?

Eric

Eric, been interested in this and had a small flutter, which is now down 50%.
Cash could be a problem for them in the 1st half of next year, if they did not generate cash in the 2nd half of this year. What do you think?

I got in an awfully long time ago and didn't sell when I should have. That said, I echo EWR's thoughts so am sitting tight.

canary: I see an overdraft of 1.1m at 30th September. Whilst Xmas sales were disappointing I take it that they were cash flow positive. However, some restructuring, lay offs will take cash so they will probably need more. The sp may preclude raising it in the market. But I see the present sp is looking gloomily on everything. I would say they are better out of the video market now and the previous CEO was slow in the uptake and paid the price. Suspect he is very bright technically: he still believes in the company and has bought more shares. Definitely a BUY.

Eric

Good jump today to 4p based on share puchases by Stewart who recently steppeddown as CEO but who now has some 19% of the equity. The most likely reason seems to be that he knows the shares are a snip at the current price.

Christmas we know was disappointing and action has been taken to run down the video side and concentrate on DVDs and licensing. Statement said that there 'may be a loss'. But there was a loss of 2.3m so actual progress will have been made; it si just that expectations haven't been met. Turnover was up 40% at the interims so for the year figure likely to be 15m or so. A profit next year of 2m (punt but seems reasonable) would be 0.65p per share or pe of 6. Still think is an attractive growth share. I moved in because I am attracted to growth shares which have a blip (currently having super runs in ASC and AZM).

Eric

,

some hi-tech products in the pipeline



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