Product Launch

Zoo Digital Group PLC
19 September 2002


19th September 2002
ZOO Digital Group plc ('ZOO' or the 'Company') :
New DVD-ExtraTM technology / Celador Licensing Agreement


Introduction

ZOO, the Sheffield based interactive entertainment company, is pleased to
announce the unveiling of a new technology, DVD-ExtraTM and the signing of an
exclusive licensing agreement with Celador International Limited ('Celador'),
the company responsible for the hit TV quiz, 'Who Wants To Be A Millionaire?'


DVD-ExtraTM

DVD-ExtraTM is a new technology that, without any amendments to current hardware
standards, allows the creation of far richer and more advanced interactive
content for use on a standard DVD player.

Film publishers are increasingly providing interactive material, such as 
'games', on new individual DVD releases. However, DVD players currently only 
contain a small processor with limited memory capability which will support only 
basic pre-determined playback features with limited options or choices. 
Accordingly, DVD players are currently unable to run even the most simple 
computer games. ZOO's DVD-ExtraTM technology, by unlocking the existing 
capabilities already held within standard DVD players, can transform the DVD 
player from a passive high quality playback medium into a truly interactive 
entertainment device capable of gameplay.

The DVD-ExtraTM technology (patent pending), is currently being used by ZOO to
create a range of titles for the consumer market. These titles will represent
the first interactive products using DVD-ExtraTM to date. It is also intended
that a commercial version of the DVD-ExtraTM authoring system will be developed
and will be made available for studios and DVD developers worldwide to create
their own content under licence from ZOO.


Celador Licensing Agreement and Product Launches

ZOO has signed an exclusive three-year deal with Celador covering all
territories (excluding North America), to deliver a suite of interactive DVD
titles under licence. The first title to be published is the UK version of 'Who
Wants To Be A Millionaire?' - an interactive quiz game based on Celador's hit TV
show, which is presented by, and features exclusive, actual footage of, host
Chris Tarrant. The second title to be published is 'The Pepsi Chart Music Quiz'
featuring top UK DJ and Pop Idol judge Neil 'Doctor' Fox. Both titles will be
available for Christmas 2002 with further titles to follow in 2003.


Ian Stewart, CEO of ZOO, commented:

'There is a proven market for interactive entertainment at home. This is borne
out by the recent explosion around the world in the number of Next Generation
games consoles, such as the PlayStation 2. However, it is estimated that the
worldwide installed base of DVD players will be approximately 65 million in
2002, some 5 million more than the expected worldwide installed base of Next
Generation consoles.'

'DVD players have a substantial consumer penetration and typically sit in the
family room or lounge of most households. Despite this, it seems that little has
been done to tap into this potential market. We believe that DVD-ExtraTM is the
key to unlock that potential and we are currently in the process of finding a
strategic partner to help us take advantage of the numerous applications for DVD
-ExtraTM and exploit the technology globally.'



Contact Details

ZOO Digital Group plc
Ken Rees, Winningtons                                  0117 317 9477
Ian Stewart, Chief Executive                           0114 241 3700


_____________________________________________________________________



About ZOO

ZOO specialises in the development and publishing of interactive entertainment
for various digital platforms including DVD, Game Boy Advance, PC, public
consoles and fixed Internet.

The Company was listed on AIM in 2000, as Kazoo3D plc and subsequently acquired
The ZOO Media Corporation Limited in May 2001, before changing its name to ZOO
Digital Group plc. It has recently cemented its place in the videogames industry
with the acquisition of publisher Digital Worldwide Limited (now ZOO Digital
Publishing Limited).

Previous and current clients include EMAP (Q), The Pepsi Chart, Celador, AOL,
Citroen, The Football League, Freeserve, Lycos, Michelin, Motorola, NTL, Rolex,
The Rugby League World Cup 2000, SCEE, Sega, Sporting Life, UEFA, William Hill
and Yahoo.


Further Information on DVD-ExtraTM

DVD-ExtraTM is a completely new method for creating interactive DVD-Video. It
facilitates the creation of content that is richer, more complex and more varied
than ever before on a standard DVD player. This should provide consumers with a
vastly superior experience to that available today.

Interactive entertainment, such as games puzzles and quizzes, have formed an
increasingly large part of the added value package offered to consumers on DVD.
However, the general standard of this entertainment is poor in comparison to
software consoles. Accordingly, it is unlikely that any of the content could be
used to produce a standalone games title due to the limitations of the DVD
authoring systems currently available.

Using present DVD authoring systems, creating interactive content is complex,
laborious and costly. DVD-ExtraTM offers a solution to this. It reduces
development costs by automating the most complex, labour intensive and
error-prone elements of the design and production phases and enables rich
interactive content to be delivered comparatively cheaply and efficiently.

ZOO has created two DVD-Video products using DVD-ExtraTM which are due for
launch in Q4 2002. The initial titles are aimed at the major entertainment
markets: Music and TV, but there are many potential applications for the
technology to deliver new kinds of entertainment for different markets. It is
anticipated that DVD-Extra will be employed to deliver content across the board
from Kids DVDs through to training and educational titles. Further titles will
be released by ZOO in 2003.

DVD-ExtraTM is not a new format for DVDs. It does not require any new disc
pressing technology and it does not require any amendment of existing standards
and specifications. It conforms entirely to the DVD-Video specification and all
of its features replay on any normal consumer DVD player that conforms to that
standard.

                                    - ENDS -


                      This information is provided by RNS
            The company news service from the London Stock Exchange