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Distributed: Sep 10, 2008

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Sydney, Sep 10, 2008 (ABN Newswire) - Zylotech Limited (ASX:ZYL) announce that Microsoft has now extended and approved its OEM (Original Equipment Manufacturer) Agreement with Zylotech Limited (CLA #276921 OEMID:12689) on Sep 9 2008 12:00AM, to include all embedded systems manufactured by Zylotech. This significant development provides Zylotech with the recognition level needed to capture international markets.

Zylotech's Rainbow product, has received its strongest endorsement yet from 3P Studios, one of Australia's leading multi-media production houses. Underpinned by the Microsoft OEM partnership, Rainbow is now a legitimate substitute to other high-performance media-centre PCs. This enables Zylotech to position itself to capture a significant share in the Graphics, Animation and Post-production Studio market often considered to be a patch held by Apple.

3P Studios www.3Pstudios.com are providing the creative imagery, animation and production force for Australia's leading advertising agencies such as Mojo and Cummins on great campaigns for Telstra, Australia Post, Kmart, Kraft and Cadbury. Their endorsement is a significant feat for the Zylotech R&D team that has admittedly set its aims very high in entering this captive and established market space.
Mr. Marco Palmieri, Animation Director and Head Digital Artist at 3P Studios explains: "As a production house for animation, graphics and photography, we really put our computers through their paces. We are really dazzled with how Rainbow handles our heavy-duty editing software; not forgetting, how exceedingly well it performs with CS3, Adobe's latest and most demanding suite for designers. It's got all the gear we need for managing high-end multi-media jobs. On-board Hi-fi Audio, Dual HDTV Video and the latest connectivity standards support, makes it ideal for editing and managing digital video, audio and imagery".

Mr. Palmieri added: "This is the first Microsoft based computer that we really have to tip our hat to - it's small, packed with performance - and all at about half the cost we would otherwise need to spend on Macs. Its energy efficiency and good looks set it apart from all the others. As a studio work-horse, it's a real winner".

Rainbow comes in several models. The Home-theatre/Graphics and Animation model incorporates an internal 1 Terabyte drive capacity good for up to 200 DVD titles. It replaces a host of devices, gaming/media centre console PCs, Audio/MP3 Pre-amplifiers, DVD player/recorder and Video Editing suites. XP or Vista OS provide full compatibility with applications. On-Board fault-tolerant RAID storage provides a peace of mind and Dual-Screen with 5.1-Surround Sound are standard whilst HD Blu-Ray DiscTM is optional.

Measuring a mere 2.5" x 7.5" profile and featuring fanless CPU cooling, robust 3mm all-aluminum chassis and under-desk mounting, Zylotech's groundbreaking energy-efficiency Rainbow runs at just 20% power consumption of the average equivalent high-performance media-centre PC, featuring critical 'performance over size' and 'performance over power-efficiency' factors set to revolutionise how media-centre and high-end graphics products are designed, built and powered over the next 5 years.

This technological breakthrough elevates Zylotech's capability to international standards. Zylotech can now capitalise on its investment in this technology and achieve its growth strategy by providing its partners with the opportunity to value-add and penetrate a market estimated well in excess of $750M in Australia alone. Our ultimate aim is to make Rainbow the 'product of choice' to major integrators like IBM, NEC and Microsoft.


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About ZYL Limited

ZYL Limited (ASX:ZYL) is an ASX listed coal exploration and development company operating in South Africa focused on becoming a producer of high quality metallurgical coal for niche export and domestic markets. The Company's key project, the Kangwane Anthracite Project, is an advanced stage high quality metallurgical coal project located in the Mpumalanga province of South Africa, immediately north of Swaziland and within 20 kilometres of the Mozambique border.

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Nicholas Sikiotis
CEO
TEL: +61-2-9427-2134
FAX: +61-2-9427-2788

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