Zoo Digital Regulatory News (ZOO)

31 October 2013

ZOO DIGITAL GROUP PLC

("ZOO" or "the Company")

Extension of Convertible Loan Notes and Directors' Dealings

ZOO is pleased to announce that holders of its Unsecured Convertible Loan Notes of £1,770,500 (the "Loan Notes") have today agreed to extend the term of the Loan Notes by four years to 31 October 2017 (the "Extension").

All other terms of the Loan Notes remain unchanged, being principally that the Loan Notes accrue interest at 7.5 per cent. per annum (payable half-yearly) and that the conversion price of the Loan Notes remains 48 pence per ordinary share of 15p each in the Company ("Ordinary Shares") converted.

Directors' Dealings

Stuart Green and Roger Jeynes, chief executive officer and chairman of the Company respectively, have agreed to purchase Loan Notes with a face value of £466,500 from other Loan Note holders (the "Purchase"). It is expected that these purchases will complete on 1 November 2013.

Dr Green and his wife, Mrs Sara Green, have purchased Loan Notes with a face value of £443,500 for a total consideration of £332,625 and consequently, together with their combined previous holding of Loan Notes with a face value of £171,000, have an interest in £614,000 of Loan Notes. Mr Jeynes has purchased £23,000 of Loan Notes at face value, having previously had no interest in Loan Notes.

Related Party Transaction

The participation in the Extension of Dr Green, as a director of the Company, and of Herald Investment Trust and Foresight Group, as substantial shareholders of the Company, and the entering into the Purchase by Dr Green and Mr Jeynes, comprise related party transactions under the AIM Rules for Companies.

The Company's independent directors (being Helen Gilder and Gordon Doran), having consulted with the Company's nominated adviser, finnCap Limited, consider that the terms of the Extension and Purchase are fair and reasonable insofar as the Company's shareholders are concerned.

Ends

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About ZOO Digital Group plc:

ZOO Digital Group plc provides software and related services that support the authoring, re-purposing and distribution of creative media. ZOO's products form an integrated suite of Cloud-based and desktop applications for audio/visual content and printed materials, adapting these media for different languages, formats and delivery mechanisms.

By centralising editorial and approval processes via secure cloud-based platforms, ZOO's proprietary patented software helps customers to increase their speed of production, reduce costs and protect their brand integrity. ZOO's services enable quicker and more cost effective processes across a wide range of applications and formats, including packaging, printed materials, DVD, Blu-ray Disc, video on demand, electronic sell-through, broadcast, music and electronic books.

The Group's largest customers include major Hollywood studios, for which the production, marketing and distribution of titles in numerous formats across many geographies and languages has previously been a lengthy, costly and largely manual process. Increasingly the Group's software is benefiting a variety of companies across sectors where the development of media products, printing, packaging and marketing involves complex processes in multiple countries and languages, particularly where brand integrity is of core importance.