RNS Number:7724K
Zoo Digital Group PLC
07 May 2003


               ZOO Digital Group plc ("ZOO" or the "Company") in
   Exclusive European Licensing Agreement With Vivendi Universal Corporation



Introduction

ZOO, the Sheffield based interactive entertainment company, is pleased to
announce the conclusion of negotiations for an exclusive licensing agreement
with Universal Pictures UK ("Universal") to create products using its
DVD-ExtraTM authoring system.

Under the terms of the deal, ZOO expects to earn cash advances and substantial
ongoing royalties.

Licensing Agreement

Universal Pictures UK is a wholly owned subsidiary of the Vivendi-Universal
Corporation, one of the world's leading publishers of DVD-Video titles.

ZOO has signed an exclusive seven-year deal with Universal covering three
European territories: France, UK and Italy, initially to deliver DVD titles for
each territory using the DVD-ExtraTM authoring system.

These titles will be interactive quiz games based on Celador's hit TV show 'Who
Wants To Be A Millionaire?'. The games will feature exclusive content and actual
footage of the respective nation's TV host and audience.

The French and UK titles will be released in the fourth quarter 2003 and the
Italian version in 2004.



DVD-ExtraTM

DVD-ExtraTM is a new authoring technology that, without any amendments to
current hardware standards, allows the creation of far richer and more advanced
interactive content for use on standard DVD players.  By unlocking the existing
interactive capabilities within standard players, DVD-ExtraTM can transform the
DVD player from a passive high quality playback medium into a truly interactive
entertainment platform, capable of gameplay.

The DVD-ExtraTM technology (patent pending) was successfully piloted by ZOO in
2002 and a commercial version of the authoring system 'DVD-Extra Studio' is now
available for studios and DVD developers worldwide to create their own content
under licence from ZOO.

Ian Stewart, CEO of ZOO, commented:

"ZOO is very proud to be working with Universal, they are one of the world's
leading entertainment companies and share our vision to create exclusive new
interactive properties on DVD.

DVD-ExtraTM is proving to be a tremendous asset for ZOO.  The explosive growth
in DVD is well documented and consumer demand for richer interactive content is
something the major entertainment publishers are keen to exploit.

DVD-Extra redefines what is possible and provides the only economical means of
delivery."


Eddie Cunningham, Chairman of Universal Pictures Video, added:

"We at Universal Pictures UK are delighted to build upon our reputation as a
pioneer of innovative entertainment with this exclusive new opportunity.

In addition to our repertoire of blockbuster movies and special interest video
programming, Universal will now provide a range of interactive 'Millionaire'
products for families to play together.  No longer will the gamers be isolated
in a spare bedroom to use the PC or games console.  Social gaming has arrived!

We look forward to working with ZOO to create enormous value from the '
Millionaire' franchise as the DVD platform continues to expand worldwide".


Contact Details

ZOO Digital Group plc

Ian Stewart, Chief Executive                                +44 (0)114 241 3700



Binns & Co.

Ken Rees                                                    +44 (0)7802 466 567
Paul Vann                                                   +44 (0)207 786 9600

                                                            +44 (0)7786 807 631





About ZOO

ZOO specialises in the development and publishing of interactive entertainment
for various digital platforms including DVD, Game Boy Advance, PC, public
consoles and fixed Internet.

The Company was listed on AIM in 2000, as Kazoo3D plc and subsequently acquired
The ZOO Media Corporation Limited in May 2001, before changing its name to ZOO
Digital Group plc. It has recently cemented its place in the videogames industry
with the acquisition of publisher Digital Worldwide Limited (now ZOO Digital
Publishing Limited).


Further Information on DVD-ExtraTM

DVD-ExtraTM is a completely new method for creating interactive DVD-Video. It
facilitates the creation of content that is richer, more complex and more varied
than ever before on a standard DVD player. This should provide consumers with a
vastly superior experience to that available today.

Interactive entertainment, such as games puzzles and quizzes, have formed an
increasingly large part of the added value package offered to consumers on DVD.
However, the general standard of this entertainment is poor in comparison to
software consoles. Accordingly, it is unlikely that any of the content could be
used to produce a standalone games title due to the limitations of the DVD
authoring systems currently available.

Using present DVD authoring systems, creating interactive content is complex,
laborious and costly. DVD-ExtraTM offers a solution to this. It reduces
development costs by automating the most complex, labour intensive and
error-prone elements of the design and production phases and enables rich
interactive content to be delivered comparatively cheaply and efficiently.

DVD-ExtraTM is not a new format for DVDs. It does not require any new disc
pressing technology and it does not require any amendment of existing standards
and specifications. It conforms entirely to the DVD-Video specification and all
of its features replay on any normal consumer DVD player that conforms to that
standard.



                                    - ENDS -


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