Update on Strategic Review

Kazoo3D PLC 13 March 2001 PRESS ANNOUNCEMENT FOR IMMEDIATE RELEASE 13 March 2001 KAZOO3D PLC ('Kazoo3D' or the 'Company') UPDATE ON STRATEGIC REVIEW The Board of Kazoo3D (the 'Board') announced on 26 January 2001 that it was reviewing all strategic options in response to Kazoo3D's website performing significantly below management's expectations (the 'strategic review'). Pursuant to the above, the Board is now holding intensive discussions regarding a potential acquisition that may allow the Kazoo3D technology to develop as part of a broader business model (the 'potential acquisition'). There is still considerable work to be carried out in relation to the potential acquisition, including the completion of satisfactory legal and accounting due diligence. The consideration payable to the vendors for the potential acquisition would be paid through the issue of new ordinary shares in Kazoo3D. The Company had net cash of £6.1 million as at 28 February 2001 and the Board has taken a number of significant steps to reduce the ongoing operating costs and overheads of the Company. A further announcement will be made as soon as possible. NOTICE OF AGM AND ACCOUNTS Under Company Law, the Company is obliged to convene its first Annual General Meeting ('AGM') by 14 April 2001, being 18 months after it was incorporated. As such, a notice is being posted today inviting shareholders of the Company to an AGM to be held on Thursday, 12 April 2001. As the outcome of the strategic review may materially impact the presentation of the accounts for the year ended 31 December 2000, the business of the AGM does not include the receiving of the Company's accounts for the year then ended. The Board has determined that it would be more appropriate to approve the Company's accounts once further progress has been made with the strategic review. Enquiries: Kazoo3D plc Tel: 0114 290 0026 Gordon Oliver, Chairman Stuart Green, Chief Executive Officer Arthur Andersen Corporate Finance Tel: 0113 207 7000 Philip Evans Jim Whittaker Hogarth Partnership Tel: 020 7357 9477 James Longfield Chris Matthews Arthur Andersen Corporate Finance, a division of Arthur Andersen, which is authorised to carry on investment business by the Institute of Chartered Accountants in England and Wales, is acting exclusively for Kazoo3D and for no one else in connection with the strategic review and potential acquisition and will not be responsible to anyone other than Kazoo3D for providing the protections afforded to customers of Arthur Andersen nor for providing advice in relation to the strategic review and potential acquisition.