Update on Strategic Review

Kazoo3D PLC
13 March 2001



PRESS ANNOUNCEMENT

FOR IMMEDIATE RELEASE

13 March 2001

KAZOO3D PLC ('Kazoo3D' or the 'Company')

UPDATE ON STRATEGIC REVIEW

The Board of Kazoo3D (the 'Board') announced on 26 January 2001 that it was
reviewing all strategic options in response to Kazoo3D's website performing
significantly below management's expectations (the 'strategic review').

Pursuant to the above, the Board is now holding intensive discussions
regarding a potential acquisition that may allow the Kazoo3D technology to
develop as part of a broader business model (the 'potential acquisition').
There is still considerable work to be carried out in relation to the
potential acquisition, including the completion of satisfactory legal and
accounting due diligence. The consideration payable to the vendors for the
potential acquisition would be paid through the issue of new ordinary shares
in Kazoo3D.

The Company had net cash of £6.1 million as at 28 February 2001 and the Board
has taken a number of significant steps to reduce the ongoing operating costs
and overheads of the Company.

A further announcement will be made as soon as possible.

NOTICE OF AGM AND ACCOUNTS

Under Company Law, the Company is obliged to convene its first Annual General
Meeting ('AGM') by 14 April 2001, being 18 months after it was incorporated.
As such, a notice is being posted today inviting shareholders of the Company
to an AGM to be held on Thursday, 12 April 2001. As the outcome of the
strategic review may materially impact the presentation of the accounts for
the year ended 31 December 2000, the business of the AGM does not include the
receiving of the Company's accounts for the year then ended. The Board has
determined that it would be more appropriate to approve the Company's accounts
once further progress has been made with the strategic review.


Enquiries:

Kazoo3D plc                                                  Tel: [phone]
Gordon Oliver, Chairman
Stuart Green, Chief Executive Officer

Arthur Andersen Corporate Finance                            Tel: [phone]
Philip Evans
Jim Whittaker

Hogarth Partnership                                          Tel: [phone]
James Longfield
Chris Matthews

 Arthur Andersen Corporate Finance, a division of Arthur Andersen, which is
authorised to carry on investment business by the Institute of Chartered
Accountants in England and Wales, is acting exclusively for Kazoo3D and for no
one else in connection with the strategic review and potential acquisition and
will not be responsible to anyone other than Kazoo3D for providing the
protections afforded to customers of Arthur Andersen nor for providing advice
in relation to the strategic review and potential acquisition.