Trading Statement

10 January 2011

                               XP Power Limited                                

                          ("XP Power" or "the Group")                          

                                Trading Update                                 

XP Power, one of the world's leading developers and manufacturers of critical
power control components to the electronics industry, is today issuing a
trading update for the fourth quarter ended 31 December 2010.

Trading


Customer demand remained robust in the period and the ongoing evolution of the
Group's business model further increased the proportion of higher margin, own
design/own manufactured products in the sales mix to deliver a significant
improvement in performance. Trading in the fourth quarter was strong, driven by
further market share gains as more new customer programmes entered production,
along with growth in existing programme volumes.

Group revenues, in the three months to 31 December 2010, grew by 47% over the
same period in 2009. In constant currency the growth rate was 43%. Growth was
broadly based across all sectors and territories, but with a notable
improvement in North America.

Revenues for the twelve months ended 31 December 2010 are 36% higher than those
achieved in 2009. In constant currency the growth rate was also 36%.
Consequently, the Board expects that Group profit before tax for the twelve
months ended 31 December 2010 will exceed current market expectations.

Production volumes at our Chinese manufacturing facility continued to increase
as the proportion of own design/own manufactured products continued to grow;
the factory exited 2010 operating in excess of 50% of capacity.

Construction of the new Vietnamese manufacturing facility started in December
2010 as planned. The Vietnam site has sufficient space for the Group to build
two factories equivalent to the size of its existing China factory in a phased
approach as demand dictates. Phase One, which will more than double our
existing manufacturing capacity, is expected to be completed by early 2012. The
addition of a third factory in Phase Two will more than triple our existing
manufacturing capacity.

Financial Position


Net debt was £19.3 million at 31 December 2010 compared to £18.6 million at 31
December 2009. Using the exchange rates prevailing at 31 December 2009, net
debt at 31 December 2010 would have been £18.5 million.

During the period, the Group renewed its term debt facility until September
2014.

Dividend

A dividend of 8 pence per share for the third quarter was paid on 7 January
2011 to shareholders on the register at 10 December 2010.

The dividend for the fourth quarter of 2010 will be announced with the 2010
final results on 21 February 2011 but, as previously reported, is not expected
to be less than 8 pence per share representing a minimum total dividend of 29
pence per share for 2010, a minimum increase of 32% over the total dividend of
22 pence per share paid in 2009.

Outlook

The Group has entered the new financial year with its order books at record
levels and remains well placed to deliver further revenue and earnings growth
in 2011.

XP Power will announce final results for the 12 months to 31 December 2010 on
21 February 2011.

                                   - Ends -                                    

Enquiries:

XP Power

Larry Tracey, Executive Chairman [phone]

James Peters, Deputy Chairman [phone]

Duncan Penny, Chief Executive [phone]

Citigate Dewe Rogerson [phone]

Kevin Smith/Ged Brumby

Note to editors

XP designs and manufactures power controllers, the essential hardware component
in every piece of electrical equipment that converts the power from the
electricity grid into the right form for the equipment to function.

XP typically designs in power control solutions into the end products of major
blue chip OEMs, with a focus on the industrial (circa 40% of sales), healthcare
(circa 30% sales) and technology (circa 30% of sales) sectors. Once designed
into a program, XP has a revenue annuity over the life cycle of the customer's
product which is typically 5 to 7 years depending on the industry sector.

XP has invested in research and development and its own manufacturing facility
in China, to develop a range of tailored products based on its own intellectual
property that provide its customers with significantly improved functionality
and efficiency.

Headquartered in Singapore and listed on the Main Market of the London Stock
Exchange since 2000, XP serves a global blue chip customer base from 27
locations in Europe, North America and Asia.