Interim Results

Zoo Digital Group PLC
31 August 2001


                 ZOO Digital Group plc (formerly Kazoo3D plc)

                   Chairman and Chief Executive's Statement

                        Six months ended 30 June 2001



These are the first results to be reported since the reverse take-over of
Kazoo3D plc by The ZOO Media Corporation Limited and the subsequent renaming
of the company as ZOO Digital Group plc in May 2001



Operating losses for this period for the combined group, before goodwill
amortisation and exceptional items, incorporating one month's contribution
from the enlarged activities, were £1.3 million compared with losses of £2.2
million in the first half of the year 2000.  In addition, there are £911,000
of exceptional restructuring costs giving an overall loss before taxation of £
2.1 million.  This represents a loss of 2.6p per ordinary share, compared with
a loss of 3.8p per ordinary share in the same period of 2000.  At 30 June 2001
the company had cash balances of £4.3 million.



The focus of activities in the short period since the reverse take-over has
been to integrate the two companies and identify the best strategic routes to
retain existing and win new clients.  The company also paid £90,000 to acquire
some assets and staff from Startle Digital Marketing giving the operation a
London base.  The company is now focused upon 'Helping its customers realise
maximum value from their brands by optimising their use of digital
communications'.



As a result of this strategic review, the company will now concentrate on:



  * Developing strategic consulting services and full-service digital
    solutions for blue-chip clients.



  * Developing and marketing innovative, scaleable new digital products.



Although the market is challenging and volatile, ZOO has the products, people
and ambition to prosper in this dynamic new media world.



M J Barnes       Chairman               I C Stewart       Chief Executive



Consolidated unaudited profit and loss account
Six months ended 30 June 2001
                                         6 months        6 months          Year
                                            ended           ended         ended
                                        30-Jun-01       30-Jun-00      31-Dec-00
                                        Unaudited       Unaudited       Audited
                                            £'000           £'000         £'000

Turnover                                      165               -             1

Operating loss before exceptional items
and goodwill amortisation
                                          (1,320)         (2,157)       (4,700)
- exceptional impairment costs                  -               -         (317)
- exceptional restructuring costs           (911)               -             -
- amortisation of goodwill                   (75)               -             -
Operating loss                            (2,306)         (2,157)       (5,017)

Interest receivable                          157             155           398
Loss on ordinary activities before        (2,149)         (2,002)       (4,619)
taxation

Overseas taxation                              -              (8)          (12)
Loss on ordinary activities after         (2,149)         (2,010)       (4,631)
taxation
Loss per ordinary share                    (2.6p)          (3.8p)        (9.5p)





Consolidated unaudited net assets
30 June 2001
                                         6 months        6 months          Year
                                            ended           ended         ended
                                        30-Jun-01       30-Jun-00     31-Dec-00
                                        Unaudited       Unaudited       Audited

                                            £'000           £'000         £'000
Fixed Assets
Tangible                                      302             263           127
Intangible                                  8,917               -             -
Investments                                   158               -             -
                                            9,377             263           127

Current Assets
Debtors                                       434             324           198
Cash at bank & in hand                      4,319           9,099         6,879
                                            4,753           9,423         7,077
Creditors : amounts falling due within    (1,212)           (452)         (502)
one year
Net current assets                          3,541           8,971         6,575

Total assets less current liabilities      12,918           9,234         6,702

Creditors : amounts falling due after       (788)               -             -
more than one year
Total net assets                           12,130           9,234         6,702


Consolidated unaudited cash flow statement
Six months ended 30 June 2001


                                         6 months        6 months          Year
                                            ended           ended         ended
                                        30-Jun-01       30-Jun-00     31-Dec-00
                                        Unaudited       Unaudited       Audited
                                            £'000           £'000         £'000

Net cash outflow from operating             (879)         (2,114)       (4,346)
activities

Returns on investment and servicing of        182             132           398
finance
Foreign tax paid                                -               -          (12)
Purchase of tangible fixed assets           (266)           (210)         (452)
Net cash outflow before financing           (963)         (2,192)       (4,412)

Financing
Issue of ordinary share capital (net of   (1,597)          11,195        11,195
expenses)
                                          (2,560)           9,003         6,783

Reconciliation of operating loss to net
cash outflow from operating activities
Operating loss                            (2,306)         (2,157)       (5,017)
Depreciation charge                            86              18            77
Loss on disposal of fixed assets                4               -             -
Amortisation of goodwill                       75               -             -
Provision for impairment losses                 -               -           317
Increase in debtors                         (236)           (226)         (124)
Increase in creditors                       1,498             251           401
Net cash outflow from operating             (879)         (2,114)       (4,346)
activities


Analysis of changes in cash and cash
equivalents
Opening balance                             6,879              96            96
Net cash (outflows) / inflows             (2,560)           9,003         6,783
Closing balance                             4,319           9,099         6,879

Analysed as follows
Cash at bank and in hand                    4,319           9,099         6,879


Notes to the Interim Statement
Six months ended 30 June 2001



1.     The financial information for the six months ended 30 June 2001 and 30
June 2000 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 financial statements to
31 December 2000.



      Financial information for the year ended 31 December 2000 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.



2.     On 11 May 2001 Kazoo3D plc acquired the whole of the share capital of The
ZOO Media Corporation Limited through a reverse takeover.  On 25 May 2001
Kazoo3D plc changed its name to ZOO Digital Group plc.  All business has been
hived up from The ZOO Media Corporation Limited into ZOO Digital Group plc.  The
ZOO Media Corporation Limited remains as a dormant subsidiary.



      During this transaction 79,830,937 shares were issued.



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