Partnership Agreement

Xaar PLC
2 April 2001


                                                                   2 April 2001





                XAAR AND SunJet SIGN INK PARTNERSHIP AGREEMENT





Xaar plc ('Xaar'), the Cambridge-based ink jet printing technology company,
and SunJet, a division of Sun Chemical, the world's leading supplier of inks
for print and graphics, have announced the signing of an ink partnership
agreement. This builds further on Xaar's strategy of partnering with leading
ink suppliers for use in XaarJet printheads.



The agreement will allow SunJet and Xaar to work closely together to develop
and manufacture a range of inks for use in XaarJet printheads. These inks will
be distributed on a worldwide basis only through Xaar.



Xaar's printheads are used in a wide variety of vertical markets within the
industrial printing sector, including, increasingly, labelling and packaging.



Sun Chemical, the world's major supplier of printing inks, brings considerable
expertise and knowledge of commercial and industrial print markets, including
the labelling and packaging sectors, plus an established digital ink jet
operation.



Together, Xaar and SunJet will support the development, acceptance and
applications of ink jet printing, and the immediate interest that exists in
the commercial print and packaging industries.



Xaar's CEO, Jan Fineman, said:



'XaarJet printheads are already well established in screen printing
applications - now we are moving into flexo markets.  Sun Chemical, and others
of its group companies such as Coates, are leaders in the flexo field and we
believe that their expertise in formulating inks in this highly diverse area
will be of enormous benefit to Xaar's customers'.



About Xaar

Xaar plc is a rapidly expanding ink jet technology development company that
has three divisions; Xaar Technology, Xaar Digital and XaarJet. Xaar
Technology licenses the patented Xaar piezo ink jet technology to major
international corporations. Xaar Digital is developing page-wide printheads
and ink systems. XaarJet manufactures and markets its own ink jet printheads
and inks.



About SunJet

SunJet, the newly formed division of Sun Chemical focuses together the Sun
Chemical group ink jet capabilities worldwide. SunJet has been established in
recognition of the ever-growing importance of ink jet technology and
applications to all facets of graphics, packaging, industrial marking and
textiles. The specific objective of SunJet therefore is to further sales and
strategic partnerships with OEM's and the developers of ink jet systems for
all areas of print. The SunJet division builds on Coates' 35 year lead in
non-impact printing and its historical strengths in ink jet.



Contacts:



Jan Fineman, Chief Executive or Gordon MacLeod, Finance Director at Xaar on
Tel: [phone]



Steve Liebmann or Lisa Baderoon at Buchanan Communications on Tel: [phone]
5000