Trading Statement

XP Power PLC 11 June 2004 Embargoed until 0700 11 June 2004 XP Power plc ('XP' or 'the Group') Trading Update XP, one of the world's leading providers of power supply solutions to the mid-tier of the electronics industry, is today issuing a pre-close period update on trading in advance of its interim results. The Group has continued to see returning confidence from its customer base. The US market in general shows signs of improvement and in particular, the communications and semiconductor manufacturing equipment sectors are showing growth. XP is focusing more of its resource on targeting the top customers in its four key markets, industrial, communications, medical and defence, where the Group is able to provide genuine value by solving their power supply problems. For the period from January to May 2004, the proportion of 'XP' branded product in the sales mix has continued to improve, enabling the Group to continue the upward trend in gross margin from the 33.5% figure achieved in the last financial year. If the current trends in the mix of business continue, XP should be in a position to achieve gross margins in 2004 that are approximately one and a half percentage points higher than those achieved in 2003. The average US Dollar to Sterling exchange rate for the 5 months to May 2004 has weakened by approximately 10% from the average rate of $1.62 that was applicable to the Group in 2003. This has had a detrimental effect on the translation of the Group's US Dollar earnings into Sterling for reporting purposes. Despite this translation effect, the Group considers that the combination of an improved gross margin and more buoyant current trading should enable XP to exceed current market expectations for earnings for the 2004 financial year. XP expects to announce its interim results for the six months ended 30 June 2004 on Tuesday, 3 August 2004. - Ends - Enquiries: XP Power plc 0118 984 5515 Larry Tracey, Executive Chairman James Peters, Deputy Chairman Duncan Penny, Chief Executive Officer Weber Shandwick Square Mile 020 7067 0700 Kevin Smith Notes to editors: XP Power plc, formerly IFX Power plc, provides power supply solutions to the mid-tier market of 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. By servicing this market XP Power provides investors with access to technology and industrial markets through its 8,000 strong customers in the profitable, high margin, mid-tier sector of the North American and European markets. The mid-tier of 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 This information is provided by RNS The company news service from the London Stock Exchange
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