Xaar Regulatory News (XAR)

Xaar plc

INTERIM MANAGEMENT STATEMENT

Xaar plc ("Xaar" or "the Group"), the inkjet printing technology group headquartered in Cambridge, is providing an Interim Management Statement covering trading from 1 January 2011.

Trading and margins for the first quarter of the year were in line with the Board's expectations.

Demand for Platform 3 ("P3") products remains strong, driven by industrial and packaging markets. Sales were up on the same period last year but remain constrained by production capacity. The expansion at Huntingdon, announced in October 2010, is on schedule to deliver initial increases to output before the end of 2011, with completion before the end of 2012.

Sales of Platform 1 ("P1") and other products have performed in line with expectations.

The Group's balance sheet is strong with net cash at 31 March 2011 of £19.8 million (31 December 2010: £22.0 million).

Since the announcement of 2010 results on 22 March 2011, we have continued to monitor the potential impact on the business of the disaster in Japan. Whilst uncertainties remain, all of our key suppliers have confirmed they will continue to meet our requirements.

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