Xaar Regulatory News (XAR)

Xaar plc

YEAR END TRADING UPDATE

Xaar plc ("the Group"), the inkjet printing technology group headquartered in Cambridge, announces an update on trading performance for the year ended 31 December 2010.

Trading

Trading for the three months ended 31 December 2010, and for the year as a whole, is significantly ahead of trading for the same periods last year.

Sales of Platform 3 ("P3") products have been substantially ahead of 2009 and, as previously reported, are currently constrained by production capacity. The recent Placing and Open Offer, completed in November, raised £14.0 million (net) to fund a substantial increase in P3 production. This production capacity expansion programme is now underway, with the first increases to output planned before the end of 2011. The programme is currently on schedule, and is expected to complete before the end of 2012.

Sales of Platform 1 products have remained at 2009 levels whilst royalty income has increased over last year.

As a result of the continued strong performance in the three months ended 31 December 2010, overall profitability for the year is expected to be slightly ahead of directors' expectations.

Cash

The Group continues to maintain a strong balance sheet with net cash at 31 December 2010 of £22.0 million (30 June 2010 - £8.2 million; 31 December 2009 - £11.1 million) including the £14.0m net proceeds from the Placing and Open Offer.

Dividend

It is the Board's intention to recommend the payment of a final dividend, details of which will be provided at the time of the announcement of the final results for the year.

Announcement of final results

The detailed results for 2010 will be announced, in accordance with Xaar's normal timetable, on 22 March 2011.

Investor site visit

The Group will be hosting a visit for institutional investors at its Huntingdon manufacturing facility on Friday 21st January. No new information will be disclosed during the visit.

END

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