Trading Statement

XP Power PLC
08 November 2005




                                                                 8 November 2005

                                  XP Power plc
                              ('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 year ending
31 December 2005.

Market conditions in the second half of 2005 have continued to be tough with
lacklustre demand in the industrial sector. This has been particularly so in our
mature geographic markets in the UK and Northern California. Demand in Northern
California has been affected by the slow down in our semiconductor manufacturing
sector customers.

We believe that revenues from North America will be slightly lower in 2005 than
those achieved in 2004. However, we expect that this will be compensated for by
growth in Continental Europe. UK revenues should be approximately the same as in
2004. We therefore expect that overall revenues for 2005 will be approximately
the same as the prior year. We also confirm the guidance given at the time of
our interim statement for 2005; that we consider revenue will be higher in the
second half of 2005 versus the first half, albeit growth will be modest.

We believe that improvement in the Group's gross margins due to better product
mix, along with tight cost control will result in both profit before tax and
earnings per share being higher in 2005 than 2004.

In addition XP is announcing the opening of its office in Shanghai, China. The
new office will provide logistical and technical support to customers who are
manufacturing in China and will work closely with our manufacturing partners to
provide quality assurance and program management. This is another step that
takes the Group closer to the manufacturing end of the supply chain.

XP is also giving guidance regarding the effect of International Financial
Reporting Standards (IFRS) on its 2005 results. Under IFRS the Group will no
longer amortise goodwill. Furthermore, International Accounting Standard 38
requires us to capitalise qualifying development expenditure and amortise it
over its useful life. As a result of this standard the Group capitalised £0.5
million of development expenditure in the six months ended 30 June 2005. It
expects to capitalise an approximate amount of a further £0.4 million in the
second half of 2005.

XP expects to release preliminary results for the year ending 31 December 2005
on Tuesday, 7 February 2006.

                                    - 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
Nick Dibden or Kevin Smith

Notes to editors:

XP Power plc 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 markets XP Power provides investors with access to technology
and industrial sectors of the North American and European 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




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