Launch and Interim Results

Kazoo3D PLC
29 August 2000

                                     
                    Launch of new e-commerce 3D website

           Interim Results for the six months ended 30 June 2000


Kazoo3D  plc ('Kazoo3D'), the 3D software specialist, today announces  the
launch  of  its new e-commerce 3D website (www.kazoo3d.com) together  with
its  first  set of interim results since its successful flotation  on  the
Alternative Investment Market in March this year.

Key highlights

e-commerce  website launched today, offering consumers the opportunity  to
buy  a  range of 3D models, including the Rocky and Bullwinkle  characters
licensed from Universal Studios Consumer Products Division

Successful promotion of KazooTechnology at the Hollywood movie premiere of
The Adventures of Rocky & Bullwinkle in conjunction with Universal Studios
and Hewlett Packard

New  partnership  agreement signed with Screenfriends.com and  discussions
with a number of other potential partners at an advanced stage

Completed  and launched KazooStudio product, a consumer application  aimed
at  the  Digital Imaging market, which enables users to create 3D-enhanced
digital photographs.  KazooStudio is available as a free download  on  the
www.kazoo3d.com website

Successful flotation on AIM completed in March 2000 raising £11.2m net  of
expenses

Strong balance sheet for continued development of company's plans

Interim results in line with expectations

Stuart Green, Chief Executive of Kazoo3D commented:

'We  have achieved a huge amount over the past eight months.  From our de-
merger at the start of the year, our flotation in March to today's website
launch,  it has been a most exciting period for us all.  It is the website
launch,  however, that represents the key milestone in the development  of
our  business  plan,  as  it  provides the platform  from  which  we  will
establish and build revenues going forward.

'The  other  key  development  during the first  half  was  our  land-mark
licensing  deal with Universal Studios which we announced in April.   This
secured  us the worldwide rights to design and sell online, 3D  models  of
Universal Studio's Rocky and Bullwinkle characters, who were the stars  of
a  part animation, part live action film released in the US at the end  of
June.  Universal Studios invited us to demonstrate our Kazoo3D products at
their Hollywood premiere.  We teamed up with Hewlett Packard at both  this
and  a  special  Hewlett Packard pre-screening event  in  New  York.   The
reaction to these demonstrations was tremendous and as a direct result has
opened  up  a  number  of  other  exciting  new  partnering  opportunities
currently  in  discussion.   We look forward to updating  shareholders  on
these partnerships as they come to fruition over the coming months.

'With the funds in place from our successful flotation and our website now
up  and  running, we look forward to an exciting second half, accelerating
the delivery of the plans we set out in our flotation prospectus.'


For Further Information Contact:

Kazoo3D plc                              
Stuart Green, Chief Executive Officer    
John Warden, Chief Financial Office      0114 290 0026
Hogarth Partnership                      
James Longfield/Chris Matthews           020 7357 9477


CHAIRMAN'S STATEMENT

The first six months of the year was a period of great change for Kazoo3D.
The company demerged from LightWork Design Limited at the start of the
year and successfully completed its placing and listing on the Alternative
Investment Market in March.  We were delighted with the response we
received from investors to our business and, despite the difficult
conditions for new issues at that time we successfully raised the £11.2
million required to develop the business as set out in the flotation
prospectus.

Since flotation, Kazoo3D has focused very closely on implementing the
strategy set out in our prospectus.  This strategy is twofold: to achieve
rapid market penetration of our proprietary 3D image manipulation
software; and, to build an e-commerce website (www.kazoo3d.com) for the
sale of Kazoo enabled 3D models to business, consumer and education
markets.  During the period we have made considerable progress on both
aspects of this strategy.

Our proprietary software allows consumers, of virtually every age and
technical background, to enhance their visual communications with 3D
images.  Using our unique KazooTechnology, users can create and share
vibrant, personalised 3D-enhanced communications in an easy, fun and
entertaining environment.

To achieve market penetration, we put in place partnerships with software
developers, Web-based companies and OEMs.  Licensing KazooTechnology to
partners with large established customer bases provides the company with
channel to a significant number of potential end user consumers.  In
return our partners can create and grow their revenue streams cost-
effectively by enhancing and differentiating their own products with our
leading-edge 3D capabilities.  I am pleased to report that during the
period we have added Screenfriends.com to our existing partnerships with
Adobe Systems, Inc and Streetwise Software, and discussions are ongoing
with a number of other parties, which we expect to be in a position to
announce over the coming months.

I am also very pleased to announce today the launch of the company's new e-
commerce website,www.kazoo3d.com.  This first release of the site offers
consumers the opportunity to buy a range of 3D models, including the Rocky
and Bullwinkle characters licensed from Universal Studios Consumer
Products Group.  An ongoing programme of development of the website is
already in place.  This programme will be augmented to include focused
enhancements established by tracking early sales and user experience
directly from within the site.  Universal is joining our other partners in
supporting the launch of our new website.

As detailed in the flotation prospectus, the directors believe the
company's 3D models add a totally new learning experience and
interactivity for consumers, giving them a new way of enhancing their
communications.  3D enhanced images offer far more creativity and detail
than can be achieved using a static two dimensional image.  Whilst the
potential applications for Kazoo3D products are broad, the company has
chosen to focus initially on the Digital Imaging market.  Feedback from
our partners and industry experts about the potential for our products in
the Digital Imaging and personal rich media space continues to reinforce
this focus.  Recent reports also indicate that growth in demand for
Digital Imaging products in the UK and continental Europe is likely to
follow the US experience more rapidly than had been anticipated, and the
company is well placed to capitalise on this trend.

The Kazoo3D technology base has been further developed with the new
KazooStudio product.  This product is aimed specifically at the Digital
Imaging market and enables consumers to combine a digital image with a
Kazoo3D model to create a unique, fun, new and exciting 'KazooPicture'
quickly and easily.  The KazooStudio product can be easily tailored to
meet the branding and customisation needs of OEM and web merchant
partners, and complements the KazooTechnology Toolkit products already
offered by the company to Independent Software Vendors.

Further to the Universal Studios licence agreement announced previously,
Kazoo3D participated in conjunction with Hewlett Packard in both Universal
Studios' Hollywood premiere and a special Hewlett Packard pre-screening in
New York of the movie, The Adventures of Rocky and Bullwinkle.  At both
these events, attendees were able to have their photograph taken
digitally, then combined with a K3D Model of either Rocky or Bullwinkle
and printed on photographic paper using KazooStudio and Hewlett Packard
hardware.  Response to these demonstrations of Kazoo3D products was
tremendous.  New partnering opportunities have been developed as a direct
result of these activities, opportunities that will be successfully
levered off the company's e-commerce website and early success of content
sales.

The company's database of 3D models continues to be developed, and over
6,000 targeted models have already been produced in anticipation of the
launch of the subscription basis of sale that will be offered after
further development of the website.  Contacts with 3D modelers and
freelance graphic artists, with whom production contracts are put in
place, have been significantly expanded following the company's successful
participation in Siggraph 2000, the leading annual computer graphics event
held in New Orleans this July.  Many 3D modelers came to this event with
pre-existing libraries that are also being appraised and acquired for
conversion into the secure Kazoo format.  In this way the company is
quickly and efficiently extending further the range of content that will
be offered.

As the attached financial statements confirm, the company's balance sheet
is strong and we are confident that Kazoo3D is well positioned to continue
the development of the business plan outlined in the flotation prospectus.


Dr R Gordon Oliver
Chairman

29 August 2000

Consolidated unaudited profit and loss account
Six months ended 30 June 2000

                                        6 months       7 months
                                           ended          ended
                                         30 June      1 January
                                            2000           2000
                                        £'000             £'000
Turnover                                -              6
Net operating expenses                  (2,157)        (765)
                                        ________       ________
Operating loss                          (2,157)        (759)
Demerger expenses                       -              (45)
Interest receivable                     155            -
                                        ________       ________
Loss on ordinary activities before      (2,002)        (804)
taxation
Overseas taxation                       (8)            (17)
                                        ________       ________
Loss on ordinary activities after       (2,010)        (821)
taxation for the period
                                        ________       ________
Loss per ordinary share                 (3.8)p         (1.8)p
                                        ________       ________
                                                       


The basic and diluted loss per share has been calculated in accordance
with FRS14 based on the loss after tax of £2,010,000 (£821,000) and on the
weighted average number of ordinary shares in issue of 52,527,819
(45,274,000).

Consolidated unaudited balance sheet
30 June 2000

                                                        
                                      30 June       1 January
                                         2000            2000
                                        £'000           £'000
Fixed assets                                            
Tangible fixed assets                   263             69
                                        ________        ________
Current assets                                          
Debtors                                 324             74
Cash at bank and in hand                9,099           96
                                        ________        ________
Creditors:  amounts falling due within  (452)           (160)
one year
                                        ________        ________
Total assets less current liabilities   9,234           79
and net assets
                                        ________        ________


Reconciliation of movement in equity shareholders' funds

                                       6 months     7 months
                                          ended        ended
                                        30 June    1 January
                                           2000         2000
                                        £'000          £'000
Loss for the financial period           (2,010)        (821)
Issue of shares (net of expenses)       11,196         -
Exchange movements                      (31)           -
Impact of Demerger agreement            -              1,294
                                        ________       ________
Net increase in shareholders' funds     9,155          473
Opening equity shareholders' funds      79             (394)
                                        ________       ________
Closing equity shareholders' funds      9,234          79
                                        ________       ________
                                                       
Consolidated unaudited cash flow statement
Six months ended 30 June 2000

                                      6 months         7 months
                                         ended            ended
                                       30 June        1 January
                                          2000             2000   
                                                         
                                                            
                                        £'000            £'000
Net cash (outflow)/inflow from          (1,983)          143
operating activities
Capital expenditure and financial                        
investment
Purchase of tangible fixed assets       (210)            (66)
                                        ________         ________
Net cash inflow before financing        (2,193)          77
Financing                                                
Issue of ordinary share capital (net           
of expenses)                            11,196           -
                                        ________         ________
Increase in cash and cash equivalent    9,003            77
                                        ________         ________
                                                         
Reconciliation of operating loss to net cash flow from operating
activities

                                        6 months        7 months
                                           ended           ended
                                         30 June       1 January
                                            2000            2000         
                                                         
                                                            
                                        £'000            £'000
Operating loss                          (2,157)          (759)
Depreciation charge                     18               16
(Increase)/decrease in debtors          (226)            353
Increase in creditors                   251              533
Interest received                       131              -
                                        ________         ________
Net cash (outflow)/inflow from          (1,983)          143
operating activities
                                        ________         ________
                                                         
Analysis of changes in cash and cash equivalents

                                        6 months        7 months
                                           ended           ended
                                         30 June       1 January
                                            2000            2000              
                                          
                                                            
                                        £'000            £'000
Opening balance                         96               19
Net cash flows                          9,003            77
                                        ________         ________
Closing balance                         9,099            96
                                        ________         ________
Analysed as follows:                                     
Cash at bank and in hand                9,099            96
                                        ________         ________

Notes to the interim statement

1  The financial information contained herein does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act
1985, but has been prepared on the basis of accounting policies used in
the preparation of the placing document dated 23 March 2000 to the
admission to trading on the Alternative Investment Market of Kazoo3D plc.
Comparative figures for the 7 months to 1 January 2000 have been extracted
from that document.  The company has not yet been required to file
statutory accounts.

2  Kazoo3D plc ('Kazoo3D') was incorporated on 14 October 1999 as
Launchstrong plc and on 3 March 2000 it changed its name to Kazoo3D plc.
No activities were undertaken by Kazoo3D until 1 January 2000.  With
effect from that date, and under an agreement for the demerger of the
Kazoo Technology business from LightWork Design Limited ('LightWork
Design'), the Kazoo Technology business and the entire issued share
capital of LightWork Design Inc. were transferred to Kazoo3D from which
time it commenced trading.

Immediately following the demerger, the shareholders of LightWork Design
and Kazoo3D were identical.  Accordingly, the business combination of
Kazoo3D and LightWork Design Inc. has been accounted for under merger
accounting principles.

3  Copies of the interim statement are being sent to all shareholders and
are available to the public on application to the company's registered
office.