Interim Results

Zoo Digital Group PLC
30 August 2002


                            ZOO Digital Group plc


                                Interim Results
                     for the six months ended 30 June 2002


Chairman and Chief Executive's Statement


Introduction

ZOO Digital Group is pleased to announce its interim results for the six months
ended 30 June 2002. The results are in line with the directors' expectations.


Results and Finances

For the six months ended 30 June 2002, the loss before taxation was £1.16m
(2001: £2.15m loss) and the loss per share was 0.8p (2001: 2.6p loss per share).
At 30 June 2002, the group had cash balances of approximately £2.16m.


Business Review

On the Gameboy Advance platform, 'Tiger Woods PGA TOUR Golf' has already been
published in the UK and Australia and will be followed by 'Who Wants To Be a
Millionaire', 'Gekido', 'Smugglers Run', 'Medal of Honor - Underground' and '
Pinball Advance', which are being sold in the UK, Europe and Australia.  An
agreement has also been reached with JPM International Limited to distribute '
The Pepsi Music Quiz' as a standalone, branded product for extensive
distribution on their touchscreen console platform. The product itself is now
almost completed and roll out will begin in the next few weeks. Finally, the PC
product 'Kazoo Home Creative Studio' has been completed and will be published in
the UK, France and Germany before Christmas.


Outlook

Having accelerated product development during the first half of 2002, the group
expects revenues to increase substantially in the second half of the year to 31
December 2002. The group's entry into the DVD market, with innovative
interactive products, is progressing very well and we expect to be able to
report significant progress shortly. The group is also continuing to explore
additional opportunities within the video games market, in order to take
advantage of this expected growth of the sector.


M John Barnes                                           Ian Stewart
Chairman                                                Chief Executive Officer


29 August 2002


For further information please contact:
Ian Stewart or Robert Deri at Zoo Digital on 0114 241 3700
Ken Rees at Winningtons on 0117 317 9477 or 07802 466567


Consolidated Profit & Loss Account
                                                                                  6 months      6 months          Year
                                                                                     ended         ended         ended
                                                                               30 Jun 2002   30 Jun 2001   31 Dec 2001
                                                                               (Unaudited)   (Unaudited)     (Audited)
                                                                                     £'000         £'000         £'000

  Turnover                                                                             274           165           724

  Net operating expenses (excluding depreciation)                                  (1,250)       (1,399)       (2,625)

  Loss before interest, tax, depreciation, amortisation and exceptional              (976)       (1,234)       (1,901)
  items                                                                                                               

  Other operating expenses                                                                                            
  - depreciation                                                                      (45)          (86)         (238)
  - amortisation of goodwill                                                         (179)          (75)         (532)
  - exceptional impairment of goodwill                                                   -             -       (5,553)

  Operating loss                                                                   (1,200)       (1,395)       (8,224)

  Cost of fundamental reorganisation                                                     -         (911)         (972)
  Investment income                                                                     38           157           233

  Loss on ordinary activities before taxation                                      (1,162)       (2,149)       (8,963)


  Taxation                                                                               -             -             -


  Retained loss for the period                                                     (1,162)       (2,149)       (8,963)


  Loss per ordinary share                                                           (0.8p)        (2.6p)       (8.15p)



Consolidated Balance Sheet
                                                                                                             
                                                                         6 months      6 months          Year
                                                                            ended         ended         ended
                                                                      30 Jun 2002   30 Jun 2001   31 Dec 2001
                                                                      (Unaudited)   (Unaudited)     (Audited)
                                                                            £'000         £'000         £'000
  Fixed Assets                                                                                       
    Intangible                                                              4,156         8,917         3,043
    Tangible                                                                  234           302           241
    Other investments                                                         228           158           228
                                                                            4,618         9,377         3,512
  Current Assets                                                                                     
    Stock                                                                     244             -             -
    Debtors                                                                   534           434           144
    Cash at bank                                                            2,162         4,319         3,323
                                                                            2,940         4,753         3,467
  Creditors : amounts falling due within one year                          (1,627)       (1,212)         (890)
  Net current assets                                                        1,313         3,541         2,577
  Total assets less current liabilities                                     5,931        12,918         6,089
  Creditors : amounts falling due after more than one year                   (757)         (788)         (763)
  Net assets                                                                5,174        12,130         5,326
                                                                                         
  Share Capital and Reserves                                 
  Called up share capital                                                     315           278           278
  Share premium account                                                    11,960        11,166        11,166
  Other reserves                                                            8,598         8,598         8,598
  Profit and loss account                                                 (15,699)       (7,912)      (14,716)
  Equity shareholders' funds                                                5,174        12,130         5,326



Consolidated Cash Flow Statement
                                                                                                                 
                                                                           Six months    Six months          Year
                                                                                ended         ended         ended
                                                                          30 Jun 2002   30 Jun 2001   31 Dec 2001
                                                                          (Unaudited)   (Unaudited)     (Audited)
                                                                                £'000         £'000         £'000

  Net cash outflow from operating activities                                     (886)         (879)       (2,813)

  Returns on investment and servicing of finance                                   38           182           233
  Capital expenditure and financial investment                                    (31)         (266)         (199)
  Acquisitions and disposals                                                     (282)             -         (736)

  Net cash outflow before financing                                            (1,161)         (963)       (3,515)

  Financing                                                                                                 
  Issue of ordinary share capital (net of expenses)                                 -        (1,597)            -

  Decrease in cash in the period                                               (1,161)       (2,560)       (3,515)


  Reconciliation of Operating Loss to                                                                       
  Net Cash Flow from Operating Activities                                                                   

                                                             Six months                  Six months          Year
                                                                  ended                       ended         ended
                                                            30 Jun 2002                 30 Jun 2001   31 Dec 2001
                                                            (Unaudited)                 (Unaudited)     (Audited)
                                                                  £'000                       £'000         £'000

  Operating loss                                                 (1,200)                     (1,395)       (8,224)
  Depreciation charge                                                45                          86           238
  (Profit) / Loss on disposal of fixed assets                        (7)                          4             -
  Increase in stock                                                (244)                          -             -
  (Increase) / Decrease in debtors                                 (390)                       (236)          413
  Increase / (Decrease) in creditors                                731                       1,498          (537)
  Cash impact of fundamental restructuring                            -                        (911)         (788)
  Goodwill amortisation                                             179                          75           532
  Goodwill impairment                                                 -                           -         5,553


  Net cash outflow from operating activities                       (886)                       (879)       (2,813)


NOTES 


1.    Board Approval 

The interim accounts were approved by the board of directors on 29 August 2002.


2.          Nature of Accounts 

The financial information for the six months ended 30 June 2002 and 30 June 2001
is unaudited and does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985. The information has been prepared on the
basis of accounting policies used in the audited financial statements to 31
December 2001.

The financial information for the year ended 31 December 2001 is extracted from
the audited accounts for that period. The auditors' report on those accounts was
unqualified and did not contain a statement under Section 237(2) or (3) of the
Companies Act 1985.


3.           Acquisition of Digital Worldwide Limited 

On 8 May 2002, ZOO Digital Group plc acquired the whole of the share capital of
Digital Worldwide Limited for £1.08m, of which £0.25m was payable in loan notes
and £0.83m was satisfied by the issue of 18,461,540 new ordinary shares in the
company. Under the terms of the acquisition, subject to the achievement of
certain performance criteria by September 2003, additional consideration of up
to a further £400,000 may be paid to the Digital Worldwide Limited vendors. On
25 June 2002, Digital Worldwide Limited also changed its name to ZOO Digital
Publishing Limited.
      

4.          Earnings Per Share 

Earnings per share is calculated based upon the loss on ordinary activities
after tax for each period divided by the weighted average number of shares in
issue during each period being 145,432,946 (2001: 81,567,907).

Information on fully diluted earnings per share has not been presented as the
company recorded a loss after tax in each of the relevant periods and
accordingly the exercise of options would not result in further earnings
dilution for shareholders.


5.          Gains and Losses 

The company had no recognised gains or losses in either the current or preceding
periods other than the loss for the period.


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