Zoo Digital Regulatory News (ZOO)

ZOO Digital Group plc

("ZOO" or "The Group")

Grant of Options, Employee Share Issue and Presentation to Shareholders

ZOO, the provider of software and software-led services for the filmed entertainment market, is pleased to make the following announcements concerning the granting of options and issue of shares to all employees of the Company.

Grant of options to Chairman

On 30 June 2010, 30,000 new options over ordinary shares in the Company of 15p each ("Ordinary Shares") were granted to the Chairman, Roger Jeynes. These are exercisable at 43p per share (being the closing mid-price on the AIM market of the London Stock Exchange plc on 29 June 2010). Roger Jeynes held neither Ordinary Shares nor share options prior to this grant.

Grant of shares to employees

In recognition of the achievements over the past year and in order to provide an ongoing incentive to align employees' interests with those of shareholders of ZOO, the directors have resolved to grant from the ZOO Employee Share Trust Limited ("ZEST") 157,350 Ordinary Shares (in aggregate) at nil cost to employees (including executive directors). The shares are to be held for employees within ZEST or the Company's Share Incentive Plan (the "SIP"), as outlined in the announcement of 17 September 2009.

Following these awards the shares beneficially owned by the directors are as follows:

Presentation to shareholders / Further information on Strategic Investment

The Company further wishes to draw attention to the posting on its website (http://www.zoodigital.com/wp-content/downloads/CompanyReports/2010PrelimsPresentation.pdf) of a presentation to shareholders regarding the Company's preliminary financial results. The presentation includes further disclosures as to the terms of the 2,148,642 warrants, exercisable at 50 pence each and lapsing in June 2013, granted as part of the strategic investment announced on 28 June 2010. The warrants vest in tranches when additional revenues into the Company arising directly from the MPS relationship exceed US$5 million in any 12 month period, and in full when revenues exceed US$10 million.

Ends

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About ZOO Digital Group plc:

ZOO Digital Group plc is a provider of creative media repurposing software and related services. ZOO's media collaboration platform consists of web-based systems and an integrated suite of desktop applications that work with printed materials and audio/visual content, adapting these media to different languages, sizes, and technical formats. ZOO makes this process extremely quick and cost effective and is clearly differentiated in the market.

ZOO's services are built on its proprietary patented software and enable customers to reduce considerably the costs and time to market of regionalised filmed entertainment materials and marketing campaigns across multiple territories and for a wide range of applications and formats, including printed materials, DVD, Blu-ray Disc, video on demand, electronic sell-through and broadcast. Working closely with language translation partners, ZOO's media collaboration platform transforms computer-based workflows through radical process re-engineering and provides clear differentiation for the company's production, consulting and custom development services.

ZOO is focused on the worldwide creative media production markets and in particular video production for entertainment applications, with customers including major film studios and other producers and publishers of video-based consumer products.

DVD is a trademark of the DVD Format/Logo Licensing Corporation. Blu-ray is a trademark of the Blu-ray Disc Association.