1st Feb 2006 10:00
Zoo Digital Group PLC01 February 2006 1 February 2006 ZOO DIGITAL GROUP PLC ("ZOO" or "the Group") STRATEGIC AND MANAGEMENT REVIEW Further to the announcement issued on 23 January 2006, ZOO announces that it hascompleted its initial strategic assessment and management review. Strategic Review ZOO Digital Publishing Ltd ("ZDP"), ZOO's games publishing business currentlyfocuses on two areas of activity: • Traditional video games publishing on platforms such as Playstation,Xbox, PC etc• The creation and publishing of interactive DVD-Video (iDVD) titles Given the weak prospects for the traditional video games publishing market, ZDPwill significantly downscale its video games activities. In addition the Groupwill undertake a number of cost saving measures in video games operations, manyof which have already been implemented. Conversely, the interactive DVD business is demonstrating excellent potentialfor growth. Sales of iDVD products in general performed well over the Christmasperiod. ZDP's three products captured 25% of the iDVD market by value with 'WhoWants To Be A Millionaire' at number two and 'Telly Addicts' at number four.Therefore the focus of ZDP moving forward will be on iDVD activities and theBoard is considering its strategic options for ZDP as part of the overallreview. ZOOtech, the technology division of the Group, continues to make progress with anumber of significant contracts and priority will be given to ensuring suchopportunities will deliver ongoing revenues. Given the potential growth of thesoftware into the US market ZOOtech is actively seeking a strategic partner tomaximise the opportunity. In addition, ZOOtech's DVD-EXTRA technology was usedto create nine of the top ten iDVD titles sold in the UK over Christmas. Dr.Stuart Green, who pioneered the creation and application of ZOOtech's unique DVDinteractive software technology, will be responsible for leading this strategy. Management Review Ian Stewart has stepped down from his role as CEO and Dr. Stuart Green,currently Chief Technical Officer, will replace him with immediate effect. IanStewart will take on a role as Non Executive Director and support Stuart Greenin the completion of the strategic review and implementation of the changesassisted by the board including the other independent Non Executive Directors. Dr Green commented: "Throughout our discussions with Hollywood studios and production facilities ithas become clear that ZOOtech's software can make a significant difference tothe DVD production process for both current and next generation Video Discs. Ilook forward to leading this progression in my new role and thank Ian Stewartfor his continued support". Ian Stewart commented: "The changes made will ensure that the Group is focused on the areas that willdeliver growth whilst positioning ZOOtech for its progression in the US. Our newmanagement structure and strategic aims will help us achieve this and I verymuch look forward to supporting Stuart in his new role". - ends - Enquiries: Dr. Stuart Green James Chandler/Helen ThomasZOO Digital Group plc Weber Shandwick Square Mile0114 241 3700 020 7067 0747 John Llewellyn-Lloyd/Alasdair RobinsonNoble & Company Limited020 7763 2200 Notes to Editors: About ZOO Digital Group PLCZOO is divided into two separate divisions; ZOOtech Ltd ("ZOOtech") and ZOODigital Publishing Ltd ("ZDPL"). ZOOtech Ltd ("ZOOtech")ZOOtech focuses on R&D and licensing of DVD-EXTRA, the Group's highly originaldevelopment software capable of creating complex interactive content forstandard DVD players. The strategy for ZOOtech is simple; to create the industrystandard tool for the production of interactive DVD content and drive revenuesthrough licensing worldwide in a combination of up front fees and royalties. ZOO Digital Publishing Ltd ("ZDPL")ZDP focuses on the publishing and distribution of interactive entertainmentproducts across multiple platforms such as interactive DVD, PS2, Xbox, GBA andPC. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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