Technology Update

Zoo Digital Group PLC
18 March 2005


18 March 2005

                             ZOO DIGITAL GROUP PLC
                             ('ZOO' or 'the Group')

                               TECHNOLOGY UPDATE

  - Feasibility study completed for DVD-EXTRA STUDIO in next generation DVD -
  - Next version of DVD-EXTRA STUDIO to be released in April 2005 as planned -

ZOO Digital Group plc, the world's provider of leading tools for the production
of interactive DVD-Video content, today announces an update on its technology in
the areas of next generation DVD and the release of the new version of DVD-EXTRA
STUDIO.

Next Generation DVD

ZOO has completed a series of feasibility studies on next generation high
definition home video formats. Following this feasibility study DVD-EXTRA
STUDIO, ZOO's professional development system, will be enhanced to incorporate
support for the next generation of video discs in the two leading formats
currently being developed by the major electronics corporates. These new high
definition formats are called 'HD DVD' and 'Blue-ray disc'.

Unlike conventional DVD authoring software, DVD-EXTRA STUDIO will provide a
multi-format development system that enables professionals to cost effectively
design a video disc title and then automatically generate that title in any or
all supported formats i.e. Standard Definition DVD, Blu-ray or HD DVD.

DVD EXTRA STUDIO version 1.6

The next version of the DVD-EXTRA STUDIO software will be released in April as
planned. DVD-EXTRA STUDIO version 1.6 is a significant development and
introduces important new 'linear' authoring features. Previously, when producing
home video titles, DVD-EXTRA STUDIO was designed to be used in conjunction with
other DVD authoring tools such that ZOO's software provided the interactive
content for a DVD, for example games, and other software provided the linear or
non-interactive content i.e. the film.

The new version provides key linear authoring functionality which will be
further enhanced in future versions, enabling a customer to develop home video
titles entirely within DVD-EXTRA STUDIO.

Stuart Green, Chief Technology Officer of ZOO Digital Group PLC commented:

'With the advent of two new video formats, DVD authoring facilities have been 
facing the prospect of having up to three separate systems for developing titles, 
and creating each project three times.  We believe that a single development 
environment is the ideal way forward enabling our customers to develop a title 
once and then deploy it multiple times.  We are working alongside the developers 
of both future disc formats at the highest level and are members of the DVD 
Forum and the Blu-ray Disc Association.  ZOO's technology will, uniquely, be 
compatible with all three formats and as such we see the development of the new 
high definition formats as a significant commercial opportunity.'

                                    - ends -

Enquiries

Ian Stewart                                                        Terry Garrett
CEO, ZOO Digital Group plc                           Weber Shandwick Square Mile
0114 241 3700                                                       07771 787098

John Llewellyn-Lloyd
Noble & Company Limited
020 7763 2200

Notes to Editors

About ZOO Digital Group PLC
ZOO is divided into two separate divisions; ZOOtech Ltd ('ZOOtech') and ZOO
Digital Publishing Ltd ('ZDP').

• ZOOtech Ltd

  ZOOtech focuses on R&D and licensing of DVD-EXTRA, the Group's highly original
  development software capable of creating complex interactive content for
  standard DVD players. The strategy for ZOOtech is simple; to create the industry
  standard tool for the production of interactive DVD content and drive revenues
  through licensing worldwide in a combination of up front fees and royalties.

• ZOO Digital Publishing ('ZDP')

  ZDP focuses on the publishing and distribution of interactive entertainment
  products across multiple platforms such as interactive DVD, PS2, Xbox, GBA and
  PC.

About 'Blu-ray Disc' and 'HD-DVD'

The two leading formats fighting for supremacy as the next-generation videodisc
format are HD DVD (developed by the DVD Forum) and Blu-ray Disc (developed by
the Blu-ray Disc Association). Who gains supremacy is dependent on film studio
support.

Studios who have announced their support for Blu-ray include Sony-owned Columbia
Tri-Star, and Sony has recently bought MGM. Disney has commented that it plans
to release titles on Blu-Ray discs. HD DVD is backed by Time Warner (Warner
Bros. and New Line), Universal, and Paramount. 20th Century Fox has yet to
decide but is on the advisory boards for both formats.


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