Control change for partner

Xaar PLC
29 January 2008


FOR IMMEDIATE RELEASE                                         29 January 2008


                                    Xaar plc

            PURCHASE OF A MAJORITY HOLDING IN XENNIA TECHNOLOGY LTD.
                              BY ROYAL TEN CATE NV

Xaar plc ('Xaar'), the inkjet printing technology group headquartered in 
Cambridge is pleased to announce that Xennia Technology Ltd. ('Xennia'), in 
which Xaar has a minority interest, has entered into an agreement with Royal 
Ten Cate nv ('Ten Cate') under which Ten Cate will purchase a 75% stake in the 
company from the founder and other management. Xaar will retain its minority 
investment in Xennia and will partner with Ten Cate in its development of inkjet
for the specialist textile and materials markets.

Based in the Netherlands, Ten Cate is a specialist textile and materials group 
listed on the NYSE Euronext Amsterdam stock exchange (stock code:KTC).  Inkjet 
is an emerging technology in the printing of textiles and in the application 
of specialist coatings and other related production processes for the textile 
market.

Xaar has enjoyed a collaborative relationship with Xennia since June 2004, 
strengthened in September 2005 when Xaar acquired a minority interest in the 
company.

Commenting on the agreement, Xaar's Chief Executive, Ian Dinwoodie, said 'I am 
pleased that Xennia has strengthened its position for the future through what 
is an innovative and collaborative agreement with Ten Cate. We already work with
Ten Cate under an EU Framework project and we look forward to working more 
closely with them in the future and to establishing inkjet as a key production 
process for the textile and specialist materials market.'

                                      Ends


Contacts

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

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




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