Investment in trade partner

Xaar PLC
12 September 2005


FOR IMMEDIATE RELEASE                                          12 September 2005

                                    Xaar plc

               STRATEGIC INVESTMENT IN INKJET INTEGRATOR, XENNIA

Xaar plc ('Xaar'), the inkjet printing technology group headquartered in
Cambridge, has made a strategic investment in Xennia Technology Limited
('Xennia'), the inkjet solutions house based in Royston, UK.

Xennia has used Xaar's technology for some years.  More recently, the two
companies have been working closely together on new developments with a joint
development agreement in effect since June 2004.  In April 2005, Xennia became a
preferred Xaar integrator partner.  Xaar's investment will strengthen this
relationship further at a time when inkjet is positioned to become a key
production process for many industrial applications.

Under the terms of the agreement, Xaar has acquired a 10% holding in Xennia for
£1.0m in cash and holds an option to purchase up to a further 2.5% at the same
price.  Currently, Xaar has no plans to increase its holding beyond that of a
minority shareholder.

Xennia was founded in 1996 by Dr Alan Hudd, President, and is a key provider of
inkjet solutions for a wide range of industrial markets.  It is an innovative
developer of fluids and integrated systems for specialist inkjet applications
and, in particular, offers unique decorative and functional UV cure inks and
technologies for industrial processes, labelling, packaging and product
decoration onto non-porous substrates.

Nigel Berry, Finance Director of Xaar, commented:

'During the past year Xaar has been developing a network of integration partners
to help spearhead its drive into new applications and new markets.  Xennia has
substantial experience of   applying inkjet to many different industrial
applications and has created a number of pioneering ink technologies including
groundbreaking metallic inks.  Our investment in Xennia will cement an already
strong relationship which we confidently expect will contribute toward Xaar's
future growth.'

Commenting for Xennia, Nick Balon, VP and General Manager, said:

'The level of ink and head synergy required for successful inkjet integration
demands very close collaboration between inkjet developers.  Xaar is recognised
as a leading supplier of high performance printheads and offers a world class
range specifically developed to meet the demands of industrial applications.
For Xennia, the relationship with Xaar strengthens our ability to offer our
customers a fully supported inkjet proposition and we see it as key to helping
sustain our growth.'


Contacts

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

Xennia Technology:                                                 01763-246600
Nick Balon, Vice President                                       www.xennia.com

Bankside Consultants:
Steve Liebmann or Susan Scott                      020-7367-8883 / 07802-888159


                      This information is provided by RNS
            The company news service from the London Stock Exchange