SAN FRANCISCO, Calif. - November 16, 2004 -Zinio Systems, Inc., worldwide leader in digital magazine production, distribution and circulation today announced the launch of two new products: Zinio Express, a browser-based magazine viewer and Zinio Reader 3, a new version of its award-winning Reader software.

Zinio Express will go into production and Zinio Reader 3 will go into beta during the week of December 6. The breakthrough combination of product capabilities establishes a new standard in digital publishing.

"The combination of Zinio Express and Zinio Reader 3.0 represents the most comprehensive delivery solution in digital publishing today," said Scott Kauffman, president and CEO of Zinio Systems, Inc.

Zinio's new products offer the only complete solution for magazine publishers and their readers, including:

• Zinio Express: An easy-to-use, browser-based viewer giving readers immediate access to magazine content, optimized for sampling and promotional efforts.
• Zinio Reader 3: A dramatically smaller download with faster reading performance, smaller magazine files, a sleek, new interface design from IDEO and innovative My Magazine archive management.
• Integrated search: Allows readers to search the text of individual magazines, or the entire Zinio archive.

"Zinio Express and Zinio Reader 3 reflect the company's commitment to delivering a quality digital reading experience for customers in the growing, evolving digital magazine publishing space," said Kenneth Eng, Director, New Product Marketing, BusinessWeek.

Why Digital?

Readers are adopting digital magazines in record numbers. According to the latest Audit Bureau of Circulation (ABC) and BPA Worldwide publisher statements, audited circulation of digital magazines has jumped 56% in just six months (December 2003-June 2004). In this fast-growing space, Zinio accounts for 61% of all audited digital magazine circulation, delivering 12 of the top 17 publications.

Zinio's new technologies provide unique benefits for publishers, readers and advertisers, including:

• For publishers: cost savings and the ability to reach a younger, tech-savvy audience. Digital editions of magazines are also no longer limited by geography for sampling or subscriptions.
• For readers: immediate delivery of magazines and the ability to archive, easily annotate and search, read offline or online and interact with rich content in unique ways.
• For advertisers: the ability to engage upscale audiences in innovative ways.

Since March 2002, Zinio has delivered more than 26 million digital magazines to more than 1.6 million customers in 232 countries. The company's stable of more than 200 popular titles from 61 major publishers includes many leading consumer and business magazines, such as Business Week, Business 2.0, Car and Driver and US News and World Report. Zinio's publishing customers include Hachette Filapacchi, Hearst, IDG, McGraw-Hill, Primedia, Reed Business Information, Technology Review Inc., Time Inc, U.S. News, VNU and Ziff Davis.

About Zinio Systems Inc.
Zinio Systems (www.zinio.com) delivers magazines in a new, powerful digital form with the same layout, text, and advertisements as the print versions, improving accessibility and reach, convenience and reading experience. Consisting of production services that convert print magazines into digital form, a dedicated reading software application and electronic delivery system, and comprehensive circulation services, Zinio allows magazine readers to enjoy offline portability, easy navigation and interactivity in a digital version available on desktop and laptop computers while offering publishers an opportunity for circulation growth. Zinio has offices in San Francisco and New York City. Zinio is privately held and investors include New Enterprise Associates (NEA), Apax Partners, Inc., Intel Capital, Odyssey Capital, NetOyster, IDEO Ventures, Centre Palisades Ventures and Starvest Partners, L.P.