Interim Results for the six months ended 30 June 2007

Ra’anana, Israel , 27 September 2007 : Zone-IP Ltd. (LSE: ZIP) announces its unaudited financial results for six months ended 30 June 2007.

In April 2006 the Company discontinued its main business activities. Subsequently, in July 2006, the Company acquired Emblaze V CON Ltd., a company which offers video over-IP conferencing solutions and changed its name to Zone-IP Ltd. and began trading under its new name on the AIM Market.

FINANCIAL HIGHLIGHTS:

• Total revenues from operations for six months ended 30 June 2007 were $3.01 million (H1 2006: $2.86 million*)
• Operating loss for six months ended 30 June 2007 decreased by 32 per cent. to $1.90 million (H1 2006 $2.80 million)
• Net loss for six months ended 30 June 2007 decreased by 37 per cent. to $1.77 million (H12006: $2.81 million*)
• Total assets as at 30 June 2007 were $11.4 million (H1 2006: $4.89 million*)
• Cash and marketable securities of $6.8 million at 30 June 2007
• Loss per share for six months ended 30 June 2007 of $0.03 (H1 2006 $0.09)

* Under IFRS, the acquisition of Emblaze V CON by Zone-IP was accounted for as a reverse acquisition, and accordingly, Emblaze V CON was treated as the acquirer for financial reporting purposes. All 30 June 2007 comparable information therefore relates to Emblaze V CON solely and does not include Zone-IP or any of its then subsidiaries.

Enquiries:

Chairman’s Statement

In the six months ended 30 June 2007 the Company incurred a loss on continuing operations of $1.77 million (H1 2006: $2.81 million) on turnover of $3.01 million (H1 2006: $2.86 million). At that date, the Company had a cash portfolio of $6.8 million.

The first six months of the year have been spent reorganising our existing product line and introducing the next generations of room systems - a new top of the line room system – xPoint, featuring ISDN and 4CIF technologies - and a new HD MCU – VCBpro with full audio and video transcoding.

The introduction of xPoint and VCBpro will, assist the Company to re-establish its position within the market. Having a complete offering for the first time in many years will enable us to demonstrate a strong presence with leading AV resellers and take part in tenders for new systems.

In June 2007, the Company’s subsidiary signed the first sale of an xPoint system in China, according to which 250 units were sold for a total consideration of $800,000.

The Directors intend to extend its range of products and service offering to customers and enhance the technology of existing products and expect that the second half of the year will see a considerable number of new product launches and upgrades in our existing product line.

Emblaze VCON will endeavor to strengthen its leading position in Video-over-IP, focus on solutionbased selling and enhance its relationships and partnerships with industry technology and service providers.

Hans Wagner
Chairman
27 September 2007

Click here to download the Financial Tables of the Interim results in PDF format

About Emblaze-VCON

Emblaze-VCON develops and manufactures a variety of conferencing solutions that enable seamless communication and collaboration using all forms of interactive media. The company's award-winning technology ensures the highest audio and video performance for organizations worldwide. Emblaze-VCON's meeting and collaboration solutions include desktop and group videoconferencing products, audio conferencing products, data conferencing products and management systems. The company markets its products and services through a network of reseller partners, OEMS and value-added resellers around the world. Emblaze-VCON has worldwide headquarters in Israel and regional offices in Munich, Paris, New Jersey and Beijing.

About Emblaze Ltd

Emblaze Ltd is a group of companies sharing a common mission to provide telecom operators with technologies, products and solutions for next generation services: Emblaze Mobile, a new breed in handsets design and manufacturing; Emblaze-VCON, is a leading provider of wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks; Orca Interactive (LSE: ORCA), provider of Interactive Television IPTV middleware for Video On Demand (VOD) and broadcast services, aimed at Telecom, cable and xDSL operators; Emblaze SmartContent, developer of highly advanced technology for Content-Push over wireless and IP networks to mobile devices and personal computers; emoze, a free global Push Email service for mobile devices that will push send your Emails and PIM data to you anywhere and to any device and Visual Defence (LSE: VDI), a provider of wireless and IP video solutions for military and homeland security markets.