Final Results

MediaZest Plc

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

MediaZest Plc ("MediaZest" or "the Group"; AIM: MDZ), has announced its audited
results for the year ended 31 December 2006.

Key points:

  * Group turnover increased by more than threefold to £3,171,000 (2005: £
    877,000), reflecting a first full year contribution from Touch Vision and
    the development of the MediaZest proposition
   
  * Increased operating loss of £ (1,131,000) (2005: £ (843,000)) reflects
    higher administrative charges and cost of sales, including £313,000 of
    non-recurring costs, predominantly Group restructuring charges. Also
    included in administrative expenses was a charge of £147,000 representing
    the first full year of goodwill amortisation resulting from the acquisition
    of Touch Vision
   
  * Loss per share of 5p (2005: 6p)
   
  * Net cash balances of £569,000 at year end (2005: £1,251,000)
   
Commenting on the results, Lance O'Neill, MediaZest's Chairman, said:

"The rationalisation of our cost base gives us a more effective platform from
which to build in 2007. We have already seen year-on-year sales growth during
the first half of 2007 which gives us encouragement as we head into our busiest
time of the year.

"We believe MediaZest is now better positioned to capitalise on the growth of
the in-store marketplace. The reshaping of the business that has occurred over
the past 18 months provides a better foundation for MediaZest's future growth
and for our objective of providing meaningful returns for shareholders."

About MediaZest

MediaZest is a creative media agency that specialises in providing innovative
out-of-home marketing solutions to leading brand owners and media agencies. The
group supplies an integrated service from content creation and system design to
installation, technical support and maintenance. MediaZest has its headquarters
in London, whilst Touch Vision, its design and engineering division, is based
in Farnham in Surrey. Its blue-chip customer base includes Adidas, Boots,
Chivas, Edeus, Motorola, Nintendo, Nokia, O2, Procter & Gamble, Sony Ericcson
and Shell.MediaZest was admitted to London's AIM market in February 2005. For
more information, please visit www.mediazest.com.

For further information, please contact:

MediaZest Plc                                                     020 7724 5680
                                                                               
Geoff Robertson, Chief Executive Officer                                       
                                                                               
City Financial Associates Limited (Nominated                      020 7090 7800
Adviser)                                                                       
                                                                               
Liam Murray                                                                    
                                                                               
Bankside Consultants                                              020 7367 8888
                                                                               
Sue Scott/Louise Davis                                                         

CHAIRMAN'S STATEMENT

Introduction

I am able to update shareholders on the activities and changes that took place
during the year and thereafter that saw the integration of Touch Vision Limited
and the development and launch of the MediaZest Ventures offering to the retail
sector.

The results for MediaZest for the year to 31 December 2006 incorporate the
results of its subsidiaries, all of which are wholly owned.

Results for the Period

Turnover for the year was £3,171,000 (2005 - £877,000), cost of sales was £
2,053,000 (2005 - £486,000) and the Group made a loss for the period, after
taxation, of £1,139,000 (2005 - £847,000) after paying interest of £8,000 (2005
-£4,000) and having paid administrative expenses of £2,249,000 (2005 - £
1,234,000). Administrative expenses and cost of sales included £313,000
non-recurring costs.

The basic loss and fully diluted loss per share was 5 pence (2005 - 6 pence).
The Group had net cash balances of £569,000 (2005 - £1,251,000) at the year
end.

Review of Activities

2006 has been a year of both transition and change for the Group as we have
moved from the initial start up phase, through the integration of a key
acquisition, to our first full year of trading.

The loss for the year reflects the structural changes that needed to be made to
our operations. This has included some personnel changes and associated costs.
In addition, the first half of 2006 saw considerable investment in establishing
MediaZest Ventures within our target market, culminating in our encouraging
participation in the 2006 In-Store Show in June which showcased our offerings
to a large number of potential new customers, resulting in a number of new
clients.

Difficult retail market conditions and slower than expected adoption of digital
media within the in-store environment undoubtedly are putting pressure on
suppliers within our market. We believe that this inevitably will lead to
consolidation within the industry. Some of our competitors have invested
heavily in screen networks to broadcast digital media messaging to consumers in
retail environments, the success of which depends on advertising sales. In
contrast, MediaZest continues to generate its income by providing innovative
point of sale installations. We deliver content provision and management
services, system design and high quality engineering, supported by an
experienced service and maintenance team. As such, our income streams do not
depend on the sale of advertising, nor does our business model have to bear the
high fixed costs required by these projects.

MediaZest Ventures Limited

The digital "out of home" market continues to suffer from tough retail
conditions and slower than anticipated adoption of new technology. This has
lead to weaker than expected growth in the MediaZest Ventures business,
typified by clients opting to run campaigns or test our technology at a small
number of sites, rather than the retail estate-wide rollouts that we originally
envisaged. As the sector matures and return on investment metrics become more
widely available, we believe this transition will transpire within our
business. We are already starting to see this shift in our business and are in
discussion with several customers interested in wider rollouts of our
technology.

To this end, we have revised our marketing strategy for 2007, directing our
offering to brand managers and fellow agencies through trade advertising,
taking a more active role in industry bodies, such as POPAI (Point of Purchase
Advertising International), and expanding our partnership network. Our upgraded
website, www.mediazest.com, also reflects the expansion of our offerings and
the broader range of customers we now attract.

There were some notable new business wins during 2006 and the Group worked on a
wide range of predominantly blue chip customer projects. As well as our
continuing work with Motorola and Chivas, highlights included innovative
displays and installations for stores and promotional activity for Candy &
Candy, Boots, Nokia, Edeus, Sony Ericcson, Procter & Gamble, O2, Adidas, Shell
and Nintendo.

Touch Vision Limited

During 2006 Touch Vision was fully integrated into the Group such that
MediaZest is now experiencing the benefits and synergies of this acquisition.
The year began with an in-depth strategic review of the business and subsequent
restructuring. Touch Vision's focus remains on its core strengths in high
quality engineering, system design and content management. In addition,
technological advances have enabled us to increase the sophistication of our
service and maintenance offering. One of the key synergies resulting from the
acquisition of Touch Vision is the ability to provide MediaZest Ventures
customers with installation and maintenance services as an integral part of our
one-stop shop offering.

Touch Vision continues to build on its growing presence in the education sector
in particular, winning the tender for a 3-year framework agreement with two
London universities for the provision of sales, installation, and maintenance
of audio-visual equipment.

In the corporate and retail sectors, Touch Vision maintained its 14 year
commercial relationship with HMV, whilst building on its associations with both
Electronic Arts and the Co-Operative Group. New business wins included projects
for blue chip companies such as Dunnhumby and NYK Logistics.

Licences and agreements

In 2006 MediaZest continued to increase the number of licences and agreements
it has to utilise third party technologies. The Group is pleased to note its
strengthening relationship with 3M in the United Kingdom, which has grown
through several projects that we have now implemented using cutting-edge 3M
products.

During the year, the Group terminated its only fee paying licence, although we
continue to be an approved reseller for that technology. As a result, MediaZest
will have no licences for which it pays a fee in 2007, generating a six figure
year on year cost saving benefit.

Board changes

As reported in the 2005 accounts, John Lovering, Anthony Moore and Nigel
Duxbury resigned from the Board last year due to the demands on their time from
other business commitments. In January 2007, Sean Reel, formerly CEO and
Chairman, stepped down. In May Christopher Theis, Commercial Director, also
left to pursue other business interests. The Board thanks them all for their
contributions to MediaZest. The current Board now comprises Lance O'Neill
(Non-Executive Chairman), Geoffrey Robertson (Chief Executive Officer) and
Andrew Hawkins (Group Sales Director).

Outlook

The rationalisation of our cost base, including staffing costs, overheads and
licences fees, gives us a more robust platform from which to build in 2007. We
have already seen year-on-year sales growth during the first half of 2007 which
gives us encouragement as we head into our busiest time of the year.

In the first half of 2007, we completed exciting new audio-visual installations
for a shopping centre in the North West of England, which included the
deployment of Panasonic's 103" Plasma Screen for the first time in a UK retail
environment, and the audio visual fit-out of Dunnhumby's UK headquarters. These
substantial projects combined the best of both MediaZest Ventures' and Touch
Vision's offerings. Our work with Electronic Arts continued, and we provided
innovative technology solutions for the likes of Mizuno, Perkins Engines,
Famous Grouse, Sony and 20th Century Fox.

We believe MediaZest is now better positioned to capitalise on the growth of
the in-store marketplace. The work performed both last year and in the early
part of this year in reshaping the business has provided a good foundation for
MediaZest's growth in the future and the objective of providing meaningful
returns for shareholders.

Lance O'Neill                                                      28 June 2007
                                                                               
Chairman                                                                       

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2006

                                                  Note          2006       2005
                                                                               
                                                               £'000      £'000
                                                                               
Turnover                                                       3,171        877
                                                                               
Cost of sales                                                (2,053)      (486)
                                                                               
Gross profit                                                   1,118        391
                                                                               
Administrative expenses                                      (2,249)    (1,234)
                                                                               
Operating loss                                               (1,131)      (843)
                                                                               
Interest payable and similar                                     (8)        (4)
charges                                                                        
                                                                               
Loss on ordinary activities before                           (1,139)      (847)
taxation                                                                       
                                                                               
Tax on loss on ordinary activities                 2               -          -
                                                                               
Loss on ordinary activities after taxation                   (1,139)      (847)
                                                                               
Loss per ordinary 10p share                                                    
                                                                               
Basic (p)                                          3             5.0        6.0
                                                                               
Diluted (p)                                        3             5.0        6.0

There are no recognised gains or losses for the current or preceding year,
other than those shown above. All results derive from continuing operations.



CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2006

                                                                 2006      2005
                                                                               
                                                                £'000     £'000
                                                                               
Fixed Assets                                                                   
                                                                               
Intangible Assets                                               2,622     2,772
                                                                               
Tangible Assets                                                   105       128
                                                                               
Current assets                                                                 
                                                                               
Stock                                                             142       169
                                                                               
Debtors                                                           535       745
                                                                               
Cash at bank and in hand                                          569     1,377
                                                                               
                                                                1,246     2,291
                                                                               
Creditors: amounts falling due within one year                  (503)     (587)
                                                                               
Net current assets                                                743     1,704
                                                                               
                                                                               
                                                                               
Net assets                                                      3,470     4,604
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                                         2,283     2,283
                                                                               
Share premium account                                           3,211     3,211
                                                                               
Share option reserve                                                5         -
                                                                               
Profit and loss account                                       (2,029)     (890)
                                                                               
Equity shareholders' funds                                      3,470     4,604



CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2006

                                                                 2006      2005
                                                                               
                                                                £'000     £'000
                                                                               
Net cash outflow from operating activities                      (613)   (1,367)
                                                                               
Returns on investments and servicing of finance                                
                                                                               
Interest paid                                                     (8)       (4)
                                                                               
Net cash outflow from returns on investments and                  (8)       (4)
servicing of finance                                                           
                                                                               
Taxation                                                                       
                                                                               
Corporation tax paid                                                -         -
                                                                               
Capital expenditure and financial investments                                  
                                                                               
Purchase of tangible fixed assets                                (61)      (35)
                                                                               
Net cash outflow from capital expenditure and                    (61)      (35)
financial investments                                                          
                                                                               
Acquisitions                                                                   
                                                                               
Net cash acquired with subsidiary undertaking                       -       146
                                                                               
Acquisition of subsidiary undertaking                               -     (971)
                                                                               
Net cash outflow for acquisition                                    -     (825)
                                                                               
Financing                                                                      
                                                                               
Issue of ordinary share capital net of costs                        -     2,952
                                                                               
                                                                    -     2,952
                                                                               
(Decrease)/increase in cash in the year                         (682)       722

Notes to the financial statements

 1. Basis of preparation
   
The financial information set out above does not constitute the Company's
statutory accounts within the meaning of section 240 of the Companies Act 1985.
The balance sheet at 31 December 2006 and the profit and loss account and cash
flow statement for the year then ended have been extracted from the Company's
audited financial statements. The auditors report on those financial statements
is unqualified and does not contain statements under sections 237(2) or (3) of
the Companies Act 1985.

 2. Taxation
   
No charge for corporation tax for the period has been made due to the loss on
ordinary activities before taxation.

 3. Loss per Ordinary Share
   
Basic loss per share is calculated by dividing the loss attributed to ordinary
shareholders of £1,139,000 (2005: £847,000) by the weighted average number of
shares during the year of 22,825,327 (2005: 14,721,499). The diluted loss per
share is identical to that used for basic loss per share as the exercise of
warrants and options would have the effect of reducing the loss per share and
therefore is not dilutive under Financial Reporting Standard 22 "Earnings per
Share".

 4. Publication of non-statutory accounts
   
These financial statements will be delivered to the Registrar of Companies and
shareholders in due course. Copies will also be available from the Company's
registered office: 3rd Floor, 16 Dover Street, London W1S 4LR.