Zoo Digital Regulatory News (ZOO)

29 April 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, today announces an update on trading for the financial year ended 31 March 2014.

The Company is pleased to report that results for the year are expected to be slightly ahead of those previously indicated in the trading update on 12 February. The Group expects to report revenue for the year of $9.7 million and a loss at the EBITDA* level of $0.3 million. This follows a period of significant investment in ZOOsubs, the Group's proprietary cloud-based subtitle production and management system, to ensure the Group remains well positioned to capitalise on this market opportunity and demand.

ZOOsubs continues to gain momentum through new client additions as well as increased volumes from existing clients. Use of ZOOsubs by our clients is biased more towards recurring outsourced delivery of services which use our software, rather than per-user software licensing. Although this results in lower initial payments from clients, it provides much greater visibility and sustainability of the Company's revenues. The Board is pleased to report that the revenue run rate from ZOOsubs clients continues to develop, providing a strong trajectory of future growth and driving further diversification in client mix, a trend which the Board expects to continue in the new financial year.

Separately, the prospects for the Company's ZOOcore business remain strong, particularly in regards to cross-selling into ZOOsubs clients, and ZOOcore continues to contribute to ZOO's recurring revenues.

Stuart Green, Chief Executive Officer of the Company, commented: "We remain very confident in the value proposition and prospects for our ZOOsubs offering and are pleased with the momentum achieved in the early phase of the rollout. We are encouraged by the current ramp up of revenues that provide better visibility and further diversification of the mix for future periods. We expect this trend to continue into the new financial year and view the future with cautious optimism."

* Adjusted for exchange differences and share based payments

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.