Trading Statement

30 Oct 2007 07:30

30 October 2007 XP Power Limited ("XP" or "the Group") Trading Update

XP, one of the world's leading providers of power supply solutions to the electronics industry, is today issuing an update on trading for the second half of its 2007 financial year ending 31 December 2007.

The softness in our end markets noted in the interim statement dated 7 August 2007 continued throughout the third quarter. This will have a negative impact on revenues for the second half of 2007 and into 2008. The situation has been exacerbated by the continuing weakness of the US Dollar. We expect revenues in the second half of the financial year to be of the order of ‚£3 million lower than those achieved in the first half, with a consequential negative impact to anticipated profits.

On a positive note, the improvement in gross margin percentage reported in the first half of 2007 to 40.9% compared to 35.8% in the same period a year ago, which resulted from the changes we made in April 2006 to focus on our own brand product, continued its progress through the third quarter of 2007. We expect this improvement to be sustained for the remainder of this financial year.

XP expects to release preliminary results for the year ending 31 December 2007in mid February 2008. - Ends - Enquiries:

XP Power +1 408 524 8514 (from 7.00am Pacific Standard Time; 2.00pm UK Time)

Larry Tracey, Executive Chairman

James Peters, Deputy Chairman

Duncan Penny, Chief Executive

Weber Shandwick Financial +44 (0)20 7067 0700

Terry Garrett/Nick Dibden/Hannah Marwood

Notes to editors:

XP Power provides power supply solutions to the electronics industry.

All electronic equipment needs a power supply. Power supplies convert the incoming AC supply into various levels of DC voltages to drive electronic components and sub-assemblies within the end user's equipment. XP Power segments its business into Communications, Defence and Avionics, Industrial and Medical. By servicing these end markets XP Power provides investors with access to the technology and industrial sectors of the global electronics market.

The market is highly fragmented and made up of a large number of small to medium sized Original Equipment Manufacturers who source standard and modified standard power supplies from several hundred power supply companies.

For further information, please visit www.xppower.com