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Warthog PLC (WHOG)


Tuesday 17 December, 2002

Warthog PLC


Warthog PLC
17 December 2002

For immediate release

17th December 2002

                                  WARTHOG PLC

                           ('Warthog' or 'the Group')


Warthog PLC, the interactive entertainment group, today announced the
acquisition of the Manchester-based game studio Zed Two Ltd ('Zed Two').  The
maximum total consideration of  £1.5m, payable in Warthog shares, is dependent
on Zed Two's cumulative profits for the three financial periods ending 31 March

Steven and John Pickford founded Zed Two in 1996 as an independent video games
development house. They have grown to a team of 21 working on several major
licences including E.T. The Extraterrestrial for New Kid Co. and Warner Bros'
Tasmanian Devil. Their original puzzle game, Wetrix, received strong reviews and
was profitable on a range of formats including GBC, PC, Dreamcast and Nintendo
64. A sequel, Aqua Aqua, appeared on PlayStation 2 and was released by SCi as
one of the console's launch line-up.

Games in development include the role-playing game  'Pillage' for major consoles
and new puzzle franchise 'Sticky Balls', both original games of Zed Two.

The addition of Zed Two brings Warthog's workforce to 230 people based across
its headquarters in Cheadle, its studio in Southern Sweden and Zed Two's
Manchester office. In the year ended 28 February 2002, Zed Two made a loss after
tax of £36,000, their first loss in four years, and had net assets of £310,000
at their year-end date.  The acquisition involves no initial consideration and
any amount of consideration will only be paid if matched by Zed Two's cumulative
profits during the periods ending 31 March 2005.

Steven Pickford, Zed Two's Managing Director commented:  'Zed Two has been
tremendously successful over the last six years as a small independent
developer, but we felt that we needed a wider commercial reach and greater
financial support to achieve our full potential in today's market. We looked
around to see who could provide this for us and Warthog were the perfect fit.
They are a modern, forward thinking, well managed development house, and their
talent and resources complement ours perfectly.'

Ashley Hall, CEO of Warthog, commented: 'We are delighted to bring Zed Two
within Warthog.  They are a highly experienced and reputable developer with a
track record of creating original Intellectual Property. By allowing them to
remain creatively independent, but servicing them with global sales and
administrative support, we look forward to a successful future together.'



Ashley Hall, CEO, Warthog plc                      0161 608 1200

Andrew Gething                                     0161 608 1200

Corporate Development - Warthog plc

David Simonson or Clare Maciocia                   020 7606 1244

Merlin Financial Communications


Warthog plc is one of Europe's leading independent games software developers.
The Company, based in Manchester, UK was established in 1997 and has been
profitable since creation.  Warthog prides itself on its highly experienced 200
+ strong development team, whose combined experience covers more than 1500 games
titles across all major platforms and most games genres.

At present, the Company is working with numerous high profile licensees to
develop video game versions of such entities as Robot Wars, Tiny Toon
Adventures, Animaniacs and X-Men as well as its own game creations Mace Griffin
Bounty Hunter and X10.  Further to developing games across all platforms,
Warthog retains strong relationships with major international publishers across
the industry, including THQ, Electronic Arts, Activision, Universal Studios,
SCi, BBC and Infogrames.  Warthog's first mobile game was successfully published
in 2001.

Warthog plc successfully floated on the Alternative Investment Market on the 1st
February 2001.

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

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