Update on US Strategy

Zoo Digital Group PLC
18 October 2005


18 October 2005

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

                            ZOO OUTLINES US STRATEGY


Further to a separate statement made today, ZOOtech Ltd ('ZOOtech'), the DVD
technology division of ZOO Digital Group plc, has announced its future strategy
and outlined market opportunities in North America.

Management Focus on US Market

Given the market size of DVD production and the large relative size of
individual deals for its technology, ZOO is looking to further develop its US
business and will focus greater resources and management time in driving sales
in this area. In particular Board members Robert Deri (CFO) and Dr Stuart Green
(CTO) will be working more closely on the opportunities that the US presents. As
a result of this greater focus at a Board level, Cees Zwaard, CEO of ZOOtech
will be leaving the business. Specific activity will include deepening existing
relationships with the major organisations and working closely with customers
regarding process improvement, reduction of client in-house production budgets
and software solutions to meet client's requirements for next generation HD-DVD
and Blu-Ray. As part of this activity two members of the technical staff are
relocating to the US on long-term secondments in order to work closely on
current developments and future opportunities.

Hollywood Studio Market

Menu Regionalisation is only one of a number of applications for the DVD-EXTRA
STUDIO technology. In addition to ZOO seeking further menu regionalisation
opportunities in Hollywood, the Group is developing other DVD-EXTRA STUDIO based
products in conjunction with major entertainment corporates and Hollywood
studios. Significantly, the technology has proved to be compatible with
production systems and compliant with the DVD industry's extremely high
standards. It is anticipated that both the number of studios using the
technology, and the number of applications for the technology, will grow
considerably.

Ian Stewart, Chief Executive of ZOO Digital Group plc commented:

'Our technology is being increasingly used by a number of organisations, has
been rigorously tested and is completely proven. Its potential, both in terms of
the number of customers and applications, is huge and we are now focusing on
maximising the opportunities Hollywood and the US present and building on the
very important relationships we have worked so hard to establish.'


                                    - ends -

Enquiries:

Rob Deri 
CFO, ZOO Digital Group plc
0114 241 3700

James Chandler/Helen Thomas
Weber Shandwick Square Mile
020 7067 0747

John Llewellyn-Lloyd
Noble & Company Limited
020 7763 2200

Notes to Editors:

About ZOO Digital Group PLC
ZOO is divided into two separate divisions; ZOOtech Ltd ('ZOOtech') and ZOO
Digital Publishing Ltd ('ZDP').

ZOOtech Ltd ('ZOOtech')
ZOOtech focuses on R&D and licensing of DVD-EXTRA, the Group's highly original
development software capable of creating complex interactive content for
standard DVD players. The strategy for ZOOtech is simple; to create the industry
standard tool for the production of interactive DVD content and drive revenues
through licensing worldwide in a combination of up front fees and royalties.

About Menu Regionalisation
The 'DVD-EXTRA STUDIO Regionalisation Utility' automates the creation of all
regionalised DVD's. The technology maximizes customers' time by using the
original menu as the template to automatically create different language or
regionalised versions. The regionalisation process is therefore standardised
removing error prone manual processes and improving productivity. More
importantly, each customer can leverage the assets created for one project by
storing translations and then use these translations for subsequent projects.

Translation costs are reduced as dictionaries are standardised and formatting of
menus becomes flexible based on the rules created for each regional version. The
cost reductions and labour savings are directly proportionate to the number of
languages used on a project i.e. the cost savings rise as more languages are
used.







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