Strategic Review

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


Notes to Editors:

About ZOO Digital Group PLC
ZOO is divided into two separate divisions; ZOOtech Ltd ('ZOOtech') and ZOO
Digital Publishing Ltd ('ZDPL').

ZOOtech Ltd ('ZOOtech')
ZOOtech focuses on R&D and licensing of DVD-EXTRA, the Group's highly original
development software capable of creating complex interactive content for
standard DVD players. The strategy for ZOOtech is simple; to create the industry
standard tool for the production of interactive DVD content and drive revenues
through licensing worldwide in a combination of up front fees and royalties.

ZOO Digital Publishing Ltd ('ZDPL')
ZDP focuses on the publishing and distribution of interactive entertainment
products across multiple platforms such as interactive DVD, PS2, Xbox, GBA and
PC.





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