Re Agreement

Zen Research PLC
25 October 2000


Letter to Company Announcements Office

Pursuant to Chapter 10 of the Listing Rules, Zen Research Plc ('Zen') submits
the announcement below with regard to a 'Class 2 Transaction'.  As noted in the
announcement, Zen Research (Ireland) Ltd., a subsidiary of Zen, has entered into
a licence agreement with Calimetrics, Inc., a U.S. corporation to acquire
rewrite technology for use in CD and DVD products.  The total consideration of
this transaction is US$5,000,000.  This transaction has a percentage ratio that
is 5% or more but is less than 25% under the Gross Asset Test set forth in
Section 10.5(a) of the Listing Rules.

Letter from Zen Research Plc

                                  ANNOUNCEMENT

                 ZEN RESEARCH ENTERS INTO LICENCE AGREEMENT WITH
            CALIMETRICS TO ACQUIRE RIGHTS FOR USE WITH MULTIPLE TRACK
                READING TECHNOLOGY FOR CD AND DVD DRIVE SYSTEMS

Zen Research plc ('Zen') today announced that its subsidiary, Zen Research
(Ireland) Ltd. has entered into a licensing agreement with Calimetrics, Inc., a
U.S. Corporation ('Calimetrics').  Calimetrics has developed proprietary
technology for writing data to reflective optical media such as  CD-R, CD-RW,
DVD-R and rewritable DVD.  Pursuant to the licence agreement, Zen has acquired
rights for use with multiple track reading technology for CD and DVD drive
systems.

Calimetrics is a technology company engaged in the business of designing and
developing proprietary technology for writing optical data storage media.

Zen shall pay Calimetrics US$5,000,000 as a licence fee, to be paid in
instalments linked to Calimetrics' achievement of certain benchmarks.  The
consideration will be paid in cash from the proceeds of Zen's recent listing  on
the London Stock Exchange.

Zen believes that this rewrite technology will complement its core technologies
and supplement Zen's entry into the rewritable optical disc drive market.

Zen designs, develops and licenses technology and intellectual property for use
in the production of high performance components for CD and DVD optical storage 
devices.  For company information, visit Zen at http://www.zenresearch.com

Contact:
David Aber (UK):        + 44 7740 308014
           (Israel):    + 972 3 671 5238