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					   Zest Group plc

       Interim Results

for the period ended 31 March 2005
    Chairman’s statement
    for the period ended 31 March 2005

    I am pleased to present the first set of figures since admission of the
    Company’s shares to trading on the Alternative Investment Market (‘AIM’) on
    24 March this year.
    The results cover the period from incorporation on 17 September 2004 to
    31 March 2005. During this period the Company generated no revenue. In
    addition to the transaction costs of the AIM flotation, which have been set
    against the premium arising on shares issued at the time of the AIM admission,
    costs were incurred in acquiring certain recording and publishing rights and in
    commencing the recording of an album, as referred to below. Certain of these
    costs are recoverable against anticipated future royalties. Costs to date have
    been funded by initial shareholder subscriptions and by the proceeds of the
    Placing effected at the time of admission to AIM. It should be emphasised that
    the reported results are historic in nature and are not an accurate reflection of
    the current state of the Company’s affairs.
    For the period to 31 March 2005 the Company recorded a loss before taxation
    of £151,300 and a loss per share of 0.46p. No interim dividend is proposed.
    The Directors are satisfied with the Company’s progress thus far, which has been
    broadly in line with that envisaged in the AIM Admission Document issued in
    March. Zest is close to completion of the recording of an album for Tara Chinn,
    an exciting new female artist who is attracting attention from major record
    labels in the UK and the USA. The Company is currently negotiating a wordwide
    licensing agreement with one of the major record labels, following which Tara’s
    album will be launched. Zest has also signed Nasio Fontaine, an established
    Reggae artist. Under this deal the Company has acquired three existing albums
    in Nasio’s catalogue together with the music publishing rights. Nasio is currently
    recording a new album, which will be released at the end of 2005 or early in
    2006. The recording and music publishing rights to this new album and an
    option over a further three more albums are also contracted to Zest.
    We are additionally in discussion with a number of independent music
    recording and publishing companies with a view to their acquisition, and are
    optimistic that these discussions will bear fruit within the coming months.

    Richard Griffiths

    28 June 2005

2   Zest Group plc
Profit and loss account
for the period ended 31 March 2005

                                                              Period from
                                                         incorporation to
                                                           31 March 2005
                                                   Notes             £000

Administrative expenses                                           (151.5)

Operating loss                                                    (151.5)

Interest receivable and similar income                               0.2

Loss on ordinary activities before and after tax       3          (151.3)

Loss per share (pence)                                 2           (0.46)

                                                           Zest Group plc    3
    Balance sheet
    as at 31 March 2005

                                                                     31 March 2005
                                                            Notes             £000

    Fixed assets
    Licence agreements                                                       153.9

    Current assets
    Prepaid royalties                                                        153.2
    Debtors                                                                   27.5
    Cash at bank and in hand                                                 335.5
    Total current assets                                                     516.2
    Creditors: amounts falling due within one year                            (93.1)
    Net current assets                                                       423.1
    Total assets less current liabilities, and net assets                    577.0

    Capital and reserves
    Called up share capital                                    3             184.2
    Share premium account                                      3             544.1
    Profit and loss account                                    3            (151.3)
    Equity shareholders’ funds                                               577.0

    Reconciliation of movement in equity shareholders’ funds
                                                                         Period from
                                                                    incorporation to
                                                                      31 March 2005

    Total recognised loss for the period                                    (151.3)
    Issue of shares                                                          728.3
    Net movement in equity shareholders’ funds                               577.0
    Equity shareholders’ funds at start of period                                –
    Equity shareholders’ funds at end of period                              577.0

4   Zest Group plc
Cash flow statement
for the period ended 31 March 2005

                                                       Period from
                                                  incorporation to
                                                    31 March 2005

Net cash outflow from operating activities                (239.1)

Returns on investments and servicing of finance
Interest received                                             0.2
Capital expenditure and financial investment
Purchase of intangible fixed assets                       (153.9)
Net cash outflow before financing                         (392.8)

Issue of shares                                            845.0
Share issue costs                                         (116.7)

Increase in cash                                           335.5

Reconciliation of net cash flow to movement in net cash
                                                       Period from
                                                  incorporation to
                                                    31 March 2005

Increase in cash                                           335.5
Change in net cash from cash flows                         335.5
Opening net cash                                               –
Closing net cash                                           335.5

                                                   Zest Group plc     5
    Notes to the interim results
    for the period ended 31 March 2005

    1. Basis of preparation
       The Interim Results were approved by the Directors on 28 June 2005. The
       results have been prepared using accounting policies consistent with UK
       generally accepted accounting practice, full details of which will be set out
       in the Company’s annual report and accounts for the period ending
       30 September 2005.
        The Interim Results are unaudited and do not constitute statutory accounts
        within the meaning of Section 240 of the Companies Act 1985.

    2. Loss per share
       The loss per share is calculated on the loss on ordinary activities after
       taxation of £151,300 and on the weighted average number of ordinary
       shares in issue during the period of 33,085,472.
        The effect of share options is anti-dilutive.

    3. Share capital and reserves
                                                 Share         Share    Profit & loss
                                                capital     premium         account
                                                  £000          £000            £000

        On incorporation                            –             –               –
        Issue of shares to founders             127.5          37.5               –
        Shares issued on admission to AIM        56.7         623.3               –
        Costs of Admission                          –        (116.7)              –
        Result for the period                       –             –          (151.3)
        At 31 March 2005                        184.2         544.1          (151.3)

6   Zest Group plc
Notes to the interim results

4. Reconciliation of operating loss to cash flows
                                                                      Period from
                                                                 incorporation to
                                                                   31 March 2005

    Operating loss                                                       (151.5)
    Movement in debtors                                                  (180.7)
    Movement in creditors                                                  93.1
    Net cash outflow from operating activities                           (239.1)

5. Copies of the results
   Copies of the Interim Results are available from the registered office.

                                                                  Zest Group plc     7
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