Xaar Regulatory News (XAR)

Xaar plc

INTERIM MANAGEMENT STATEMENT AND ANALYST DAY

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

Revenue and profit for the third quarter of the year were ahead of the Board's expectations. The Board anticipate that this level of trading will continue during Q4, leading to a strong performance for the full year 2011.

Sales of Platform 3 ("P3") products in Q3 grew ahead of expectations through the successful completion of the early stages of the capacity expansion programme. This has relieved the short term supply constraint, slightly earlier than anticipated, with the result that P3 revenues are now demand driven. The remaining critical stages of the programme are on track for completion through the fourth quarter of 2011 and the first half of 2012.

Sales of Platform 1 ("P1") products have performed in line with expectations, with revenue for Q3 2011 slightly lower than Q2 2011, however forward visibility remains limited.

Royalty income for the year to date has increased compared to the same period last year, reflecting, in part, some market share loss to licensees in markets serviced by P1 products.

The Group's balance sheet remains strong with net cash at 30 September 2011 of £16.8 million (30 June 2011 - £20.6m, 31 December 2010: £22.0 million). The reduction in net cash reflects planned expenditures related to the capacity expansion.

To date, the global economic environment has not impacted Xaar's trading. However, the Board remain cautious and continue to monitor sales channels closely.

Today, Xaar is hosting an open day for analysts at its Huntingdon manufacturing facility. The purpose is to update analysts on progress with the capacity expansion and to discuss the markets for its P3 products. No new information will be presented.

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