Trading Statement

Zoo Digital Group PLC
23 April 2007


Embargoed for 7.00am                                              23 April 2007

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

ZOO Digital Group today announces an update on trading for the year ended 31 
March 2007, ahead of its preliminary results announcement in June.

Further to the trading statement on 19 January 2007, the Group's performance is 
expected to meet revised market expectations for the year ended 31 March 2007 
with a cash balance of £2.0 million at the year end.

Following an increase in interest for ZOO's products, the Group has continued to 
strengthen and grow its sales team, employing several highly qualified 
individuals with extensive business experience and proven track records in the 
video production industry, including with Technicolor and Warner Home Video.

In the first quarter of 2007 the group generated its first revenues from its 
Templated Authoring System ('TAS').  The Group signed a major Hollywood studio 
as its first customer for the use of TAS in October 2006.  Under this contract, 
TAS will be used to produce DVD titles and revenues will be derived on a per 
title basis.  This system is now in full production and is generating income 
which reduces the reliance on interactive DVD's and provides a higher level of 
recurring revenue throughout the year.

Stuart Green, Chief Executive of ZOO Digital Group, commented:

'Further to the trading statement in January, we are pleased to report that the 
Group has had a strong final quarter of the financial year.

'We are very excited that our Templated Authoring System is now in full 
production by a major Hollywood studio.  Not only does this demonstrate the 
advanced DVD technology developed by the Group, but also generates a reliable 
income stream.  We anticipate this contract will open up further opportunities 
and, combined with our expanded sales team, look forward to the future with 
confidence.'

                                    - ends -
                                        
Enquiries:

ZOO Digital Group plc                                        Tel: [phone]
Stuart Green - Chief Executive Officer
Helen Gilder - Group Finance Director

KBC Peel Hunt Ltd                                            Tel: [phone]
Patrick Booth-Clibborn

Weber Shandwick Financial                                    Tel: [phone]
Chris Lynch/Helen Thomas

Notes to Editors

ZOO Digital Group ('ZOO') is an innovative software solutions company that helps 
video publishers and rights owners maximise revenues and profits by exploiting 
their content across multiple platforms, languages and territories. ZOO has 
a portfolio of over 60 patents (granted or pending) and a depth of knowledge 
in digital media processes which has few rivals.

ZOO's key products include:

Interactive DVD software - world leading tool for creating interactive DVDs. 
Most of the interactive titles played on any household DVD player are made with 
ZOO's software. Notable titles include 'Who Wants to be a Millionaire?', 
'Question of Sport' and 'Madagascar - Animal Trivia Game'.

Linear DVD production software - technology to automate the production of linear 
(movies & TV shows) digital media. With this automation comes a significant 
reduction in time-to-value for the intellectual property, as well as radically 
changing the economies of publishing back catalogues.

Multi-language production software - technology to 'localise' text that appears 
in digital media. This software automates the localisation process for video 
publishers. Previously, highly-skilled technicians were required to manipulate 
graphical data. Now, with ZOO's software, text that needs translation is 
extracted and replaced with corresponding translations - reducing time, errors 
and labour costs.

Template Authoring System (TAS) - TAS has been designed to accommodate current
and future video-based technologies. By dening templates for different
platforms, alternative versions of the titles - such as HD DVD and Blu-ray Disc
can be quickly and easily created using the same system but different asset
data.




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