Zoo Digital Regulatory News (ZOO)

22 October 2014

ZOO DIGITAL GROUP PLC

("ZOO" or "the Company")

Trading Update

ZOO Digital Group plc, the provider of cloud-based media production software and services to global creative organisations, today provides an update for the six month period ended 30 September 2014.

The Board is pleased to report that trading for the period has continued in line with management expectations, driven by the continued improvement in revenue from subtitling services delivered using ZOOsubs, the Group's proprietary cloud-based subtitle production and management system. As such, in its interim results for the first half, the Company expects to report revenue of not less than $6.8m (H1 2013: $4.7m), being significant growth of more than 40% over the comparative period last year.

This increase in the delivery of subtitling services entails use of subcontract translators with associated cost of sale which, together with the supporting investments made in sales, marketing and infrastructure, is expected will result in EBITDA margin similar to that in the comparative period last year. The Company continues to have in place a working capital facility and this was recently extended in line with the Company's actual and anticipated revenue growth.

Demand for the Group's subtitling software and services continues to build with new customers added every month, including some of the largest global buyers of localisation services. Investment continues in ZOOsubs and ZOOcore in line with growing demand in order to capitalise on this market opportunity.

Ends

For further enquiries please contact:

About ZOO Digital Group plc:

ZOO Digital is a provider of cloud-based media production services and software to global creative organisations, predominantly in the entertainment industry. ZOO's full service proposition includes localisation of audio-visual content (embracing subtitling, captioning and dubbing), creative workflow systems and digital distribution solutions.

ZOO's services enable clients to capitalise on new routes to market and deliver localised content to their customers across multiple platforms.

ZOO's clients enjoy reduced time to market, higher quality and lower costs. This is achieved by delivering differentiated production services through the application of innovative cloud software. In this way ZOO provides flexible solutions that combine services with software licensing to meet the diverse needs of clients of all sizes across the creative media industries. ZOO's software is used to create localised entertainment products, packaging and marketing campaigns for some of the best known brands in the world.