Zoo Digital Regulatory News (ZOO)

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 announces an update on trading for the financial year ended 31 March 2015.

The Company is pleased to report that revenue for the year is expected to be around 20% greater than the prior year at approximately $11.4m (2014: $9.6m). The Company expects a loss at the EBITDA* level of approximately $0.6m (2014: $0.5m). This follows, as previously announced, second half revenues lower than the first due to a combination of seasonality of projects in the entertainment industry and disruptions within a major customer. The sales pipeline for the new financial year has continued to improve, with the potential for further improvement following the recently announced contract win with BBC Worldwide and by our recent appointment by Apple Computer Inc. as an iTunes Delivery Partner.

The Company has made good progress in the diversification of its sources of revenue and has significantly reduced its historical dependency on its largest customer. During the year its cloud-based production systems, ZOOsubs and ZOOcore, have been adopted by BBC Worldwide and several other leading content creators and publishers, thereby doubling the number of customers. These developments are expected to lead to additional revenue from digital packaging, subtitling, and other localisation services.

Stuart Green, Chief Executive Officer of the Company, commented: "We are encouraged by the positive momentum of our cloud-based solutions and the opportunities arising from recent client successes. Although the home entertainment market continues to be volatile and evolve rapidly, the investments that we have made during the year in our language translation capabilities are expected to support improved margins, notably in subtitling services."

* Adjusted for exchange differences and share based payments

Ends

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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.