Trading Update

Zoo Digital Group PLC
20 December 2002




ZOO Digital Group plc ('ZOO Digital' or the 'Group')

20 December 2002

Trading Update



The Board of ZOO Digital announces that trading for the Group, in the second
half of 2002, will fall significantly below market expectations. The principle
reasons for this are:



  • Restricted distribution has limited sales of the two interactive DVD
    titles, 'Who Wants to be a Millionaire?' and 'The Pepsi Chart Music Quiz'.



  • The acquisition process for 'Premier Manager' on PS2 took much longer than
    anticipated. This resulted in a lower pre-Christmas sell-in although
    significant orders have been received for 2003.



  • Distribution of 'The Pepsi Chart Challenge' on soft console has been
    delayed until after the New Year, postponing revenues until 2003.



  • Key retailers have delayed taking the Home Creative Studio PC product
    until February 2003.



Consequently the loss for the year ending 31 December 2002 will be higher than
market expectations



Outlook



  • The innovative DVD titles have been very well received by the industry and
    there is a great deal of interest in the underlying DVD-ExtraTM technology.



  • The prospects for further development of DVD titles look excellent and
    discussions are at an advanced stage with a number of parties. Proposals
    have been received which we believe will deliver new revenue streams to the
    business in 2003.



  • GameBoy Advance titles have performed in-line with expectations and the
    company has a strong inventory for release during 2003.




Ian Stewart, CEO of ZOO Digital, commented:



'The Board is pleased with recent progress and is continuing to explore further
opportunities in the video games market. Following a period of investment in new
licenses and technology, the Group is well placed to exploit this potential in
2003.'





                                     -ENDS-



Contacts:

ZOO Digital Group plc                       0114-241-3700
Ian Stewart, Chief Executive

Noble & Company Limited                     0131 225 9677
Joe Philipsz, Director



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