Business
Strategic Review
Strategic Review.
About this update from Zoo Digital Group Plc
[{"type":"text","content":"\n Zoo Digital Group PLC\n01 February 2006\n\n\n1 February 2006\n\n ZOO DIGITAL GROUP PLC\n ('ZOO' or 'the Group')\n\n STRATEGIC AND MANAGEMENT REVIEW\n\nFurther to the announcement issued on 23 January 2006, ZOO announces that it has\ncompleted its initial strategic assessment and management review.\n\nStrategic Review\n\nZOO Digital Publishing Ltd ('ZDP'), ZOO's games publishing business currently\nfocuses on two areas of activity:\n\n• Traditional video games publishing on platforms such as Playstation,Xbox, PC etc\n• The creation and publishing of interactive DVD-Video (iDVD) titles\n\nGiven the weak prospects for the traditional video games publishing market, ZDP\nwill significantly downscale its video games activities. In addition the Group\nwill undertake a number of cost saving measures in video games operations, many\nof which have already been implemented.\n\nConversely, the interactive DVD business is demonstrating excellent potential\nfor growth. Sales of iDVD products in general performed well over the Christmas\nperiod. ZDP's three products captured 25% of the iDVD market by value with 'Who\nWants To Be A Millionaire' at number two and 'Telly Addicts' at number four.\nTherefore the focus of ZDP moving forward will be on iDVD activities and the\nBoard is considering its strategic options for ZDP as part of the overall\nreview.\n\nZOOtech, the technology division of the Group, continues to make progress with a\nnumber of significant contracts and priority will be given to ensuring such\nopportunities will deliver ongoing revenues. Given the potential growth of the\nsoftware into the US market ZOOtech is actively seeking a strategic partner to\nmaximise the opportunity. In addition, ZOOtech's DVD-EXTRA technology was used\nto create nine of the top ten iDVD titles sold in the UK over Christmas. Dr.\nStuart Green, who pioneered the creation and application of ZOOtech's unique DVD\ninteractive software technology, will be responsible for leading this strategy.\n\nManagement Review\n\nIan Stewart has stepped down from his role as CEO and Dr. Stuart Green,\ncurrently Chief Technical Officer, will replace him with immediate effect. Ian\nStewart will take on a role as Non Executive Director and support Stuart Green\nin the completion of the strategic review and implementation of the changes\nassisted by the board includ...