Grant received

Zoo Digital Group PLC
28 October 2003

28 October 2003


                 ZOO Digital Group plc ('ZOO' or 'the Company')

           Business Link South Yorkshire Backs ZOO Digital Group plc

ZOO Digital Group plc ('ZOO'), the Sheffield based technology and games
publishing company, today announced that it has received a £250,000 grant from a
new scheme funded by the European Regional Development Fund managed by Business
Link South Yorkshire.

The scheme, known as IFG2, provides support and financial assistance including
development and risk capital to growing and innovative businesses in the South
Yorkshire region, thus adding value to the local economy.

The grant will enable the Company to maximise further developments to their DVD
Authoring Software, DVD-ExtraTM. It will be issued to ZOO in stages over the
forthcoming two years in line with these developments.

ZOO already has an exclusive licensing agreement with Vivendi Universal
Corporation to deliver products across three European territories, using its
DVD-ExtraTM authoring system. One of the agreements with Vivendi is for the
release of DVD titles based on Celador's hit TV series 'Who Wants To Be A
Millionaire?', which will be released across the UK and France in November 2003
and will feature exclusive content and actual footage of the host and audience.

Ian Stewart, CEO of ZOO commented:

'We are delighted with the support we have received from IFG2, which will place
us in an excellent position to further develop the DVD-ExtraTM Studio software
and to license it to a host of worldwide DVD authoring studios. The grant will
also help us to expand and deliver further titles in our DVD product range and
to capitalise on consumer demand for rich interactive DVD content.'

David Patterson of Business Link South Yorkshire said:

'We work closely with the local business community to help achieve further
growth for their businesses. ZOO Digital possesses a ground-breaking DVD
technology and high quality products as well as an extremely capable management
team, which is exactly the recipe for growth.'


                                      Ends


For Further Information:

Ian Stewart, CEO, 0114 241 3700
Robert Deri, Finance Director, 0114 241 3700
Gemma Smith / James Chandler, Beattie Financial, 020 7398 3300
Alasdair Robinson, Noble & Company Limited, 0131 225 9677


Notes to Editors

ZOO Digital Group Plc (www.zoodigitalgroup.com)

ZOO Digital Group, the DVD technology and games publishing company, was founded
in 1999 by Ian Stewart (founder of Gremlin Interactive plc). In April 2001 it
reversed into AIM listed technology company Kazoo 3D. ZOO has strong expertise
in two areas - games publishing and DVD authoring software.

• DVD Authoring Software

In DVD, ZOO has developed a technology called DVD-ExtraTM. The software enables
DVD authors to introduce new interactive functionality - playable on standard
DVD players - to the DVD. Additionally, it vastly reduces the time and cost
taken to produce such content. DVD-ExtraTM enables the DVD industry - from
Hollywood to corporate and educational institutions - to provide highly
interactive stand-alone and bonus content for DVD at lower cost and time than
ever before possible. Who Wants To Be A Millionaire? will be released on DVD
this November 2003. 40 DVD Authoring houses are currently part of a DVD-ExtraTM
'Early-Adopters' programme including Technicolor and Warner Bros (GDMX).

• Games Publishing

In gaming, ZOO concentrates mainly on licensing and publishing existing games
rather than on the development of new titles. This is a lower risk business
model has been adopted due to the low break even sales levels required and the
ever increasing costs development. ZOO has published and distributed a wealth of
quality titles predominantly on GBA, PS2 and PC platforms including Medal of
Honor Underground, Tiger Woods PGA Tour Golf, Premier Manager, Who Wants To Be A
Millionaire? and Sim City 2000. Over 40 sku's will be released in Q4 2003.



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