NEW YORK, NY, August 21, 2007 – ROO Group, Inc. (OTCBB: RGRP), a global leader in digital media and advertising solutions, today announced results for the second quarter ended June 30, 2007. The Company reported consolidated revenues of $3.6 million for the quarter, an increase of 78% compared to consolidated revenues of $2.0 million for the second quarter ended June 30, 2006.

ROO incurred a net operating loss of approximately $7.5 million in the second quarter of 2007, including $1.2 million of non-cash related items. This compares to a net operating loss of $3.3 million for three months ended June 30, 2006, including $0.7 million of non-cash related items. As of June 30, 2007, the Company had a cash and cash equivalents balance of approximately $23.8 million.

Commencing with the reporting of 2Q results, ROO believes it is appropriate to report revenues on a segmented basis as a result of the continued growth and the changing nature of its business. The Company will now report revenues for its two primary areas of business:

* Online Digital Media spans all aspects from Web site creation and supply of technology, to content and delivery of static and video assets, online property development and management, and monetization of video through advertising sales.
* Advertising Agency provides varied forms of media and services including direct marketing, incentive programs, internal communications, CRM, brand planning, sales promotion, creative, brand identity, sponsorships, on-line marketing, new media, media planning, media buying and packaging.