Press Centre

Xaar plc (“Xaar”), the inkjet printing technology group headquartered in Cambridge, UK, presents an update on performance for the full year ended 31 December 2005.

Xaar is pleased to report that trading remained strong during the second half of the year and the results for the twelve months ended 31 December 2005 were ahead of market expectations. Reported under IFRS, sales were approximately £42.8m and profit before tax (and foreign exchange movements on inter-company loans) was approximately £11.0m (under UK GAAP, the comparable numbers were £42.7m and £10.5m respectively).   Cash at the end of the year was £14.4m reflecting increased capital expenditure, working capital movements and funding of purchases of the company’s own shares by its ESOP Trust.

In September of this year the group announced plans to establish a second manufacturing facility in the UK.  A suitable building has now been selected in Huntingdon, Cambridgeshire and a lease is currently being finalised.  The plant is scheduled to be operational by the end of 2006.

ANNOUNCEMENT OF PRELIMINARY RESULTS FOR 2005

Detailed results for the year to 31 December 2005 will be released on Tuesday 14 March 2006.

For more information, please contact:

Bankside Consultants: 020-7367-8883 / 07802-888159
Steve Liebmann

Xaar plc: 01223-423663
Ian Dinwoodie, Chief Executive
Nigel Berry, Group Finance Director & Deputy Chief Executive
www.xaar.co.uk