1st Quarter Results

Zen Research PLC
15 May 2001

15 May, 2001



                 Zen Research plc announces unaudited results

 for the three months ended 31 March 2001 and that Mr. Davidi Gilo has become
                           Chief Executive Officer



Zen Research plc ('Zen' or the 'Company') today announces unaudited results
for the first quarter ended 31 March 2001.

Zen is the developer and licensor of Multibeam and True X technologies used in
the production of high-performance components for DVD and CD drives. Zen has
recently acquired Silicon Value, a developer of advanced ASIC solutions
generating substantial cost, performance and power enhancements.

Zen further announces that Mr. Davidi Gilo, Co-Founder and Chairman of the
Board, has in addition been appointed as Chief Executive Officer to manage the
day-to-day operations of the enlarged Zen Group. Mr. Emil Jachmann, the former
Chief Executive, has been appointed Executive Vice President to continue the
development of Zen's optical drive technologies and will remain as a Director.

Mr. Gilo stated, 'I would like to take this opportunity to thank Emil Jachmann
for his years of vision and leadership as Zen's Chief Executive Officer since
its inception. We look forward to his continued contribution and assistance.'



First Quarter Highlights

* Afreey, located in Taiwan, began prototyping a Zen-enabled DVD-

ROM drive

* A global consumer electronic company commenced development of

components for their first Zen enabled consumer product

* A licensing agreement was signed and chip development commenced

with a DVD video player company

* A further patent was awarded to Zen for Multibeam, bringing

Zen's patent portfolio to a total of 24

Current period

* Completed acquisition of Silicon Value, a developer of advanced

technologies for ASIC enhancement, which is expected to

accelerate cost reduction of future Zen-enabled chips

* Infineon Multibeama DVD-ROM chip taped out for production

Davidi Gilo, Chairman and Chief Executive, Zen Research plc,

said:

'The delays in realization of a commercial product, which are now largely
behind us, lead us to conclude that we will not have significant volume sales
of Zen enabled DVD-ROM drives in 2001. In addition, the slowing PC market
worldwide, combined with the current PC and component pricing pressures, as
well as the oversupply of components and final products has reduced our
visibility into 2002.

'We have taken steps to adapt to the changing economic conditions of the
marketplace. Silicon Value was a timely acquisition and will create
significant cost savings to Zen- enabled ASICs in an increasingly price driven
market. We are also working with our other component licensees to adjust to
these changing conditions.

'Silicon Value is well-positioned to benefit from similar pricing trends in
the broader chip market by offering solutions to silicon providers who are
under pressure to produce cheaper and smaller chips.

'I am aware of the many challenges that we face. I will be working with the
rest of Zen management team, employees, and partners and will use my 15 years
of experience managing high-tech companies which produced low-cost, high
volume consumer and communications products, primarily for the Japanese
markets, to successfully meet Zen's objectives.'



For further information:

Zen Research plc                          Tel: [phone]

Davidi Gilo, Chairman and Chief Executive

Mark Way, Vice President Investor Relations



Bell Pottinger Financial                    Tel: [phone]

Matthew Moth / Oliver Jones



www.zenresearch.com





REVIEW OF BUSINESS ACTIVITIES



PC DVD drives

'Raptor', Infineon's 'Powered by Zen' DVD-ROM drive controller ASIC, which was
first fabricated for test samples at the end of last year, has required an
extended testing period. Production samples were taped out on April 30 2001.
We expect Infineon to be ready for initial mass production in July 2001, but
the delay has lead to some uncertainty with respect to the production
schedules of Zen enabled DVD-ROM drives, for at least the short term.

The downturn in the global PC market has caused a backlog of drive products
and components and has very recently created a price war declared by the
leading PC companies which is likely to add pricing pressure for Zen drives.

Despite this, Zen's licensing partners remain committed to developing Zen
enabled DVD-ROM drives. Afreey began prototyping a Zen-enabled DVD-ROM drive
during the period.



Other applications

Good progress continues to be made with the global consumer electronics
manufacturer, who has already commenced development of components for their
first Zen-enabled consumer product.

Following the signing of a licensing agreement with a DVD video player
company, chip development has already commenced and is generating revenue in
the form of engineering fees, with royalties expected next year.

We expect the recent acquisition of Silicon Value to play a key role in the
application of Zen's technology into a wider range of consumer products which
demand smaller, cheaper, less power hungry components, which is Silicon
Value's speciality.

FINANCIAL COMMENTARY

Turnover

Turnover for the three months ended 31 March 2001 increased to US$182,000
compared to US$87,000 for the comparable period ended 31 March 2000. This
represents engineering fees earned during the period, whereas, turnover for
the three month period ended 31 March 2000 represents royalties.



Research and development

Research and development expenses increased to US$3.1 million for the three
month period ended 31 March 2001 compared to the corresponding period amount
of US$1.6 million. This increase reflects the increase in headcount and
related expenses, expenditures on outside engineering services to develop and
enhance Zen's intellectual property and increased facilities expenses.

Other operating expenses

Other operating expenses for the three month period ended 31 March 2001
increased to US$1.9 million, compared to US$888,000 for the corresponding
prior year three month period. This increase was mainly due to increased
headcount and related expenses, professional fees, insurance, marketing
programs and other costs arising from Zen's growth and status as a listed
company.



Consolidated Balance Sheet

Cash on hand and short-term investments increased at 31 March 2001 to US$92.6
million compared to US$2.1 million at 31 March 2000. This increase was mainly
due to the successful public offering on the London Stock Exchange. Proceeds
from this issue were partially used to reduce the outstanding amount due to
creditors falling due within one year.

CURRENT PERIOD

Acquisition of Silicon Value

On 24 April 2001, New Silicon Value plc, a subsidiary of Zen Research plc,
acquired most of the assets of Silicon Value (S.V.) Ltd. for US$22.25 million.
New Silicon Value is a developer of highly advanced technology and chip
designs that significantly reduce the size, and thereby the cost, of complex
ASICs.

This technology is directly applicable to the ASICs designed by Zen for
Multibeam optical drives. Silicon Value already has established customers for
whom they have provided chip size (and therefore cost) reductions of 50%. We
believe that through close integration with Zen's existing technicians these
efficiencies will ultimately lead to a reduction in the cost of Multibeam
components.

Management changes

Davidi Gilo, formerly non-Executive Chairman of Zen Research plc, has become
Executive Chairman and Chief Executive of Zen Research plc. Prior to
co-founding Zen, Mr. Gilo founded and held chief executive posts at DSP Group
and DSP Communications. DSP Group develops digital signal processing
integrated circuits and software for digital speech products targeted at the
consumer telephone and computer technology markets. DSP Communications
designed and developed chip sets for wireless personal communications
applications and was purchased by Intel Corporation in 1999 for approximately
US$1.6 billion. Mr. Gilo also serves as the Chairman of Vyyo Inc. which is a
publicly traded company on NASDAQ in the broadband wireless area.

Mr Gilo has successfully taken advanced technologies and turned them into
successful companies. He has experience in managing complex businesses
effectively. He co-founded Zen and has a proven track record in the silicon
industry.

Independent review report to ZEN Research plc

Introduction

We have been instructed by the company to review the financial information set
out below and we have read the other information contained in the interim
report for any apparent misstatements or material inconsistencies with the
financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board. A review consists principally of
making enquiries of management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly, we do not express an audit opinion on
the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the three months
ended 31 March 2001.

PricewaterhouseCoopers

Chartered Accountants and Registered Auditors

London

14 May 2001



Zen Research plc

Results for the quarter and year ended 31 March 2001

Consolidated profit and loss accounts
                                                                   Audited Year
                                             Unaudited Quarter    ended
                                                         ended              
                                                            31               31
                                                         March         December
                                          2001            2000             2000
                                                      US$ '000         US$ '000
                                                      

Turnover                                   182              87              271
Research and                           (3,110)         (1,595)          (8,295)

development
Other operating                        (1,949)           (888)          (4,968)

expenses excluding

exceptional items
Exceptional items:                           -               -         ( 5,806)

Costs in connection

with initial public

offering
                                       -------         -------          -------
Total other operating                  (1,949)           (888)         (10,774)

expenses
                                       -------         -------          -------
Total operating                        (5,059)         (2,483)         (19,069)

expenses
                                       -------         -------          -------
Loss on ordinary                       (4,877)         (2,396)         (18,798)

activities before

interest and taxation
Net interest receivable/(payable)        1,062           (309)            1,647
                                       -------         -------          -------
Loss on ordinary                       (3,815)         (2,705)         (17,151)

activities before

taxation
Taxation on ordinary                     (122)            (15)            (354)

activities
                                       -------         -------          -------
Loss on ordinary                       (3,937)         (2,720)         (17,505)

activities after

taxation
                                      ========        ========         ========
Basic loss per share                    (0.02)          (0.02)           (0.11)

(US dollars)
                                      ========        ========         ========
Fully diluted loss per                  (0.02)              --           (0.11)

share

(US dollars)
                                      ========        ========         ========

Weighted Average                   179,919,331     127,763,019      152,730,242

Ordinary Shares
                                      ========        ========         ========

The Company has no recognised gains and losses in any of the periods shown
above other than the loss for the period shown in the relevant profit and loss
account. Accordingly, no separate statement of total recognised gains and
losses has been presented.

Zen Research plc

Consolidated balance sheet
                                                 Unaudited    Audited Unaudited

                                                 31 March    31         31 March
                                                             December
                                                      2001      2000       2000
                                                                 
                                                  US$ '000   US$ '000  US$ '000
                                                             
                                                     1,008      1,147       460
    Fixed assets
                                                     1,938      1,745     1,430
    Intangible assets

    Tangible assets

                                                  --------   --------  --------
                                                     2,946      2,892     1,890

    Current assets

                                                    83,368     42,726        --
    Short-term investments

Debtors - due after                                  1,323                1,826
                                                                1,503
    more than one year

                                                     1,014        583       296
    Debtors - due within

    one year

                                                  --------   --------  --------
                                                    85,705     44,812  2,122122
                                                     9,185     54,192     2,078
    Cash at bank and in

    hand

                                                  --------   --------  --------
                                                    94,890     99,004     4,200

    Creditors - Amount
                                                   (3,817)    (4,958)  (10,878)
    falling due within one year

                                                  --------   --------  --------
                                                    91,073     94,046   (6,678)
    Net current

    assets/(liabilities)

                                                  --------   --------  --------
                                                    94,019     96,938   (4,788)
    Total assets less current liabilities

                                                   (4,471)              (1,939)
    Creditors - Amounts falling due after more
    than one year                                             (4,050)

                                                  --------   --------  --------
                                                    89,548     92,888   (6,727)
    Net assets

    /(liabilities)

                                                  --------   --------  --------

    Capital and reserves
                                                    13,648     13,562     9,723
    Called up share

    capital

                                                   101,040    100,529        --
    Share premium

                                                    37,832     37,832    27,800
    Other reserves

                                                  (62,972)   (59,035)  (44,250)
    Profit and loss account

                                                  --------   --------  --------
                                                    89,548     92,888   (6,727)
    Total equity

    shareholders'

    funds/(deficit)

                                                 =========  ========= =========



Zen Research plc

Consolidated cash flow statement
                                                      Unaudited         Audited

                                           Quarter ended        Year ended

                                                 31 March           31 December
                                                2001       2000            2000
                                                       US$ '000        US$ '000
Net cash outflow from

operating activities before

exceptional items                            (6,228)    (1,870)        (13,052)
Exceptional items - Costs in                       -          -         (5,806)

connection with initial

public offering
Net cash outflow from                        (6,228)    (1,870)        (18,858)

operating activities
                                            --------   --------        --------


Returns on investments and

servicing of finance

Interest received                              1,483          2           3,195

Interest paid                                     --      (240)           (635)
Net inflows/(outflows) from

returns on investments and

servicing of finance                           1,483      (238)           2,560

Taxation                                          --          5           (116)
Capital expenditure and

financial investments
Purchase of intangible fixed                      --         --         (1,000)

assets
Purchase of fixed assets                      (397)        (72)         (1,299)
Sale of tangible fixed assets                     --         --             119
                                            --------   --------        --------


                                                                       

Net cash outflow for capital                 (397)       (72)           (2,180)
expenditure
Management of liquid resources              (40,642)      (100)        (42,726)
Financing
Repayment of borrowings                           --         --         (1,800)
Proceeds from advances in

respect of royalties                              --      1,500           3,000
                                                 
    Net, proceeds from issuances of

    ordinary shares                             597         --         104,368

Proceeds from issue of shares                    --      2,056           9,348


    of Zen Research NV

Repayment of loan notes due                      180        550           3,773

from shareholders
                                            --------   --------        --------
                                                 

Net cash inflow from financing                   777      4,106         118,689
                                            --------   --------        --------
Increase/(decrease) in cash                 (45,007)      1,831          57,369
                                           =========  =========       =========



Notes to the Preliminary Announcement of Zen Research plc


        1.      Basis of preparation

             The financial information for the quarter ended 31 March 2001 has
        been prepared on the basis of the accounting policies set out in the
        financial statements for the year ended 31 December 2000, under the
        historical cost convention and in accordance with accounting standards
        applicable in the United Kingdom.

        2.     Loss per share

             Basic loss per share is calculated by dividing the loss
        attributable to ordinary shareholders by the weighted average number
        of ordinary shares in issue during the period. Diluted loss per share
        is adjusted for the effect of potential ordinary shares, such as share
        options and warrants.




 3. Reconciliation of movements in shareholders funds/(deficit)



                                            Quarter ended 31 March
                                         2001                        2000
                                                   US$'000
Loss for the period                        (3,937)                      (2,720)
Proceeds of issue of ordinary                  597                           --

shares
Proceeds of shares by Zen                       --                        2,306

Research NV
                                          --------                     --------
Net reduction in shareholders'             (3,340)                        (414)
funds / (deficit)
Opening shareholders' funds /               92,888                      (6,313)

(deficit)
                                          --------                     --------
Closing shareholders' funds /               89,548                      (6,727)

(deficit)
                                          ========                     ========




        4.     Notes to the consolidated cash flow statements

                                                         Quarter ended 31 March
                                                2001                       2000
                                                                        US$'000
Operating loss                               (4,877)                    (2,396)
Depreciation of tangible fixed                   204                        164

assets
Amortisation of intangible fixed                 139                         88

assets
Increase in debtors                            (431)                      (105)
Increase/(decrease) in creditors             (1,263)                        379
                                            --------                   --------
                                             (6,228)                    (1,870)
                                            ========                   ========


 5. Reconciliation of net cash flow to movements in net funds / (debt)



                                                         Quarter ended 31 March
                                              2001                         2000
                                                                        US$'000
(Decrease) / increase in cash             (45,007)                        1,831
Movement in liquid resources                40,642                            -
Exchange differences                             -                        (119)
                                          --------                     --------
Movement in net funds / (debt)             (4,365)                        1,712
Net funds / (debt) 1 January                96,918                      (4,977)
                                          --------                     --------
Net funds / (debt) 31 March                 92,553                      (3,265)
                                          ========                     ========







6.     Subsequent events


        In April 2001, Zen acquired most of the assets of Jerusalem-based
        Silicon Value Ltd. ('Silicon Value'), a subsidiary of the
        NASDAQ-listed Tioga Technologies, for a total of US$22.25 million in
        cash and debt assumption. The assets were acquired by a wholly owned
        subsidiary of Zen Research plc, New Silicon Value plc. As of 31 March
        2001, the net book amount value of the assets purchased was US$3.3
        million.

The financial information contained in this announcement does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act
1985. The Company was incorporated on 30 December 1999, and the financial
statements for the year ended 31 December 2000 have not yet been delivered to
the Registrar of Companies, although the auditors have reported on them. The
auditors' report was unqualified and did not contain a statement either under
Section 237(2) or Section 237 (3) of the Companies Act 1985.



This press release contains forward-looking statements regarding among other
things the future success of ZenO technology and the potential cost reduction
of future Zen-enabled chips using New Silicon Value technology. These forward
looking statements are based on current expectations and are subject to risks
and uncertainties. Actual events and results may differ materially from those
described in these forward-looking statements, as a result of several factors,
including the successful implementation of Zen technology, the successful
integration of New Silicon Value into Zen, the achievement of cost reduction
of Zen-enabled chips by New Silicon Value, the ability of Zen and New Silicon
Value to successfully market and sell their products under current market
conditions, and other risk factors as set forth in the Zen Offering Circular
dated June 26, 2000.