Entry into of loan agreements

    30 December 2008

                                Zone-IP Limited                                

                         ("Zone-IP" or the "Company")                          

       Entry into of loan agreements for an aggregate of US$1.3 million        

Zone-IP announces that it has entered into a loan agreement with Emblaze Ltd.
("Emblaze"), the holder of 64.8 per cent. of the Company's issued share
capital, pursuant to which Emblaze has granted the Company a non-interest
bearing loan of US$909,536 (net of US$28,793 previously owed by Company to
Emblaze as a result of a reimbursement agreement between the parties dated 01
January 2007) ("Loan"). The Loan is unsecured and is repayable on 25 December
2013. The Loan was approved by the audit committee of the Company's board of
directors and by the Company's board of directors after they determined that
the terms of the Loan fall into the definition of a 'Benefiting Transaction'
under Regulation 1(2) of the Israeli Companies Regulations (Relieves in
Transactions with Interested Parties), 2000.

In addition, Hans Wagner, Chairman, and Tal Barnoach, Vice Chairman, have each
entered into loan agreements with the Company of US$279,253 and US$93,084
respectively (the "Director Loans"). The Director Loans are also each unsecured
and repayable on 25 December 2013.

Given the aggregate value of the Loan and Director Loans, the size of Emblaze's
interest in the Company and Dr Wagner and Mr Barnoach's positions as directors
of the Company, both the Loan and the Director Loans are deemed to be related
party transactions under the AIM Rules. The independent directors of the
Company, Amira Paz, Assaf Medina and David Blass, (the "Independent
Directors"), having consulted with the Company's nominated adviser, John East &
Partners Limited, consider the terms of the transactions to be fair and
reasonable insofar as the shareholders of the Company are concerned. In
advising the Independent Directors, John East & Partners Limited has relied
upon their commercial assessment.

Enquiries:

ZONE-IP                                                                        
                                                                               
Hagit Gal                                                        [phone]
                                                                               
David Amir                                                       [phone]
                                                                               
John East & Partners Limited                                                   
                                                                               
David Worlidge / Bidhi Bhoma                                [phone]



END