Trading Statement

Zoo Digital Group PLC
22 October 2001




PRESS ANNOUNCEMENT

FOR IMMEDIATE RELEASE

22 October 2001

ZOO DIGITAL GROUP PLC ('ZOO DIGITAL' OR THE 'COMPANY')

TRADING STATEMENT

The Board of Zoo Digital (the 'Board') announces that due to a recent slowdown
in the digital media solutions market, revenues are running approximately £1
million below budget and the loss for the year ending 31 December 2001 is
likely to be correspondingly higher than market expectations.

As a result of the prevailing shift in the market, the Board has accelerated
the Company's development of scaleable digital products and reduced the
resources dedicated to strategic consultancy and the provision of digital
solutions. The cost base has been adjusted accordingly and the headcount
reduced.

The Company retains a strong cash position.

The Board is pleased with recent progress made in expanding a number of its
digital products into new markets. These include developing at least six games
and products to be released into the digital public console market during 2002
and the planned publication of the newly focused Kazoo Studio product in a
number of territories by Easter.



Enquiries:
Zoo Digital Group plc                          Tel: [phone]
John Barnes, Chairman

Ian Stewart, Chief Executive Officer