Reduction of Capital

DIGITAL ANIMATIONS GROUP PLC

Notice is hereby given that on 24th June 2003 the Lord Ordinary pronounced an interlocutor in the Court of Session, Edinburgh, confirming the cancellation of the share premium account of Digital Animations Group PLC, a company incorporated in Scotland under the Companies Act 1985 and having its Registered Office at The Lighthouse, 70 Mitchell Street, Glasgow G1 3LX (“the Company”), resolved upon by special resolution passed on 27th March 2003 and, no answers having been lodged, having heard counsel, the Lord Ordinary (1) Approved the Report of Peter J Braid WS, dated 20th June 2003; (2) Declared the provisions of Section 136(3) to (5) of the Companies Act 1985 to not have effect as regards the creditors of the Company or any class of them; (3) Directed the Registrar of Companies to register a certified copy of the Interlocutor dated 24th June 2003; and (4) Directed that notice be given once in the “ Edinburgh Gazette ” and in the “ Herald ” newspaper. The said Interlocutor was registered with the Registrar of Companies as of 9th July 2003, all of which notice is hereby given.

Dundas & Wilson, C.S.

Saltire Court, 20 Castle Terrace, Edinburgh EH1 2EN

Solicitors for the Petitioner