Interim Results

Zest Group PLC
29 June 2005

RNS Announcement
29 June 2005



                                 Zest Group plc


                                Interim Results
                       for the period ended 31 March 2005

Chairman's Statement

I am pleased to present the first set of figures since admission of the
Company's shares to trading on the Alternative Investment Market ('AIM') on 24
March this year.

The results cover the period from incorporation on 17 September 2004 to 31 March
2005.  During this period the Company generated no revenue.  In addition to the
transaction costs of the AIM flotation, which have been set against the premium
arising on shares issued at the time of the AIM admission, costs were incurred
in acquiring certain recording and publishing rights and in commencing the
recording of an album, as referred to below.  Certain of these costs are
recoverable against anticipated future royalties.  Costs to date have been
funded by initial shareholder subscriptions and by the proceeds of the Placing
effected at the time of Admission to AIM.  It should be emphasised that the
reported results are historic in nature and are not an accurate reflection of
the current state of the Company's affairs.

For the period to 31 March 2005 the Company recorded a loss before taxation of
£151,300 and a loss per share of 0.46p.  No interim dividend is proposed.

The Directors are satisfied with the Company's progress thus far, which has been
broadly in line with that envisaged in the AIM Admission Document issued in
March.  Zest is close to completion of the recording of an album for Tara Chinn,
an exciting new female artist who is attracting attention from major record
labels in the UK and the USA. The Company is currently negotiating a wordwide
licensing agreement with one of the major record labels, following which Tara's
album will be launched .  Zest has also signed Nasio Fontaine, an established
Reggae artist. Under this deal the Company has acquired three existing albums in
Nasio's catalogue together with the music publishing rights.   Nasio is
currently recording a new album, which will be released at the end of 2005 or
early in 2006.  The recording and music publishing rights to this new album and
an option over a further three more albums are also contracted to Zest.

We are additionally in discussion with a number of independent music recording
and publishing companies with a view to their acquisition, and are optimistic
that these discussions will bear fruit within the coming months.

Richard Griffiths
Chairman

28 June 2005

Enquiries: John Bick, Holborn Public Relations    Tel: [phone]
Zest Group plc


Profit and loss account
for the period ended 31 March 2005
                                                               Period from
                                                             incorporation
                                                                        to
                                                                  31 March
                                                                      2005
                                                               (Unaudited)
                                                                      £000
                                                    Notes

Administrative expenses                                            (151.5)

Operating loss                                                     (151.5)

Interest receivable and similar income                                 0.2

Loss on ordinary activities before and after tax      3            (151.3)

Loss per share (pence)                                2             (0.46)



Zest Group plc

Balance sheet
As at 31 March 2005
                                                                31 March
                                                                    2005
                                                             (Unaudited)
                                                                    £000
                                                 Notes
Fixed assets
Licence agreements                                                 153.9

Current assets
Prepaid royalties                                                  153.2
Debtors                                                             27.5
Cash at bank and in hand                                           335.5
Total current assets                                               516.2

Creditors: amounts falling due within one year                    (93.1)

Net current assets                                                 423.1

Total assets less current liabilities, and net                     577.0
assets


Capital and reserves
Called up share capital                            3               184.2
Share premium account                              3               544.1
Profit and loss account                            3             (151.3)

Equity shareholders' funds                                         577.0



Reconciliation of movement in equity shareholders'
funds
                                                             Period from
                                                        incorporation to
                                                           31 March 2005
                                                             (Unaudited)
                                                                    £000

Total recognised loss for the period                             (151.3)
Issue of shares                                                    728.3
Net movement in equity shareholders' funds                         577.0
Equity shareholders' funds at start of period                          -
Equity shareholders' funds at end of period                        577.0







Zest Group plc

Cash flow statement
for the period ended 31 March 2005

                                                             Period from
                                                        incorporation to
                                                                31 March
                                                                    2005
                                                             (Unaudited)
                                                                    £000

Net cash outflow from operating activities                       (239.1)

Returns on investments and servicing of finance
Interest received                                                    0.2
                                                                     0.2

Capital expenditure and financial investment
Purchase of intangible fixed assets                              (153.9)

Net cash outflow before financing                                (392.8)

Financing
Issue of shares                                                    845.0
Share issue costs                                                (116.7)
                                                                   728.3


Increase in cash                                                   335.5


Reconciliation of net cash flow to movement in net cash
                                                             Period from
                                                        incorporation to
                                                                31 March
                                                                    2005
                                                             (Unaudited)
                                                                    £000

Increase in cash                                                   335.5
Change in net cash from cash flows                                 335.5
Opening net cash                                                       -
Closing net cash                                                   335.5



Zest Group plc

Notes to the Interim Results
for the period ended 31 March 2005

1.         Basis of preparation

The Interim Results were approved by the Directors on 28 June 2005.  The results
have been prepared using accounting policies consistent with UK generally
accepted accounting practice, full details of which will be set out in the
Company's annual report and accounts for the period ending 30 September 2005.

            The Interim Results are unaudited and do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.

2.         Loss per share

            The loss per share is calculated on the loss on ordinary activities
after taxation of £151,300 and on the weighted average number of ordinary shares
in issue during the period of 33,085,472.

            The effect of share options is anti-dilutive.

3.         Share capital and reserves

                                                                  Share            Share         Profit &
                                                                                                     loss
                                                                capital          premium          account
                                                                   £000             £000             £000

On incorporation                                                      -                -                -
Issue of shares to founders                                       127.5             37.5                -
Shares issued on admission to AIM                                  56.7            623.3                -
Costs of Admission                                                    -          (116.7)                -
Result for the period                                                 -                -          (151.3)

At 31 March 2005                                                  184.2            544.1          (151.3)


Zest Group plc

Notes to the Interim Results (continued)
for the period ended 31 March 2005

4.         Reconciliation of operating loss to cash flows

                                                              Period from
                                                            incorporation
                                                                       to
                                                                 31 March
                                                                     2005
                                                              (Unaudited)
                                                                     £000

Operating loss                                                    (151.5)
Movement in debtors                                               (180.7)
Movement in creditors                                                93.1

Net cash outflow from operating activities                        (239.1)


5.         Copies of the results

            Copies of the Interim Results will be sent to shareholders in due
course and will be available from the registered office.


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