First Licence Signed in USA

Xaar PLC
20 December 2000



                                                               20 December 2000





                                   Xaar plc



                         FIRST LICENCE SIGNED IN USA





Xaar plc ('Xaar'), the Cambridge-based inkjet printing technology group, has
today announced that it has signed a special licence agreement with a US
corporation. This is Xaar's first licence agreement in the US.



The agreement covers a limited number of Xaar patents and is focussed on
industrial printing applications.



Although the terms of the licence and the identity of the licensee cannot be
disclosed under the terms of the contract, the licence fee will contribute
towards the results for the year to 31 December 2000.



Xaar now has 11 licensees for its ink jet printing technology including large
corporations in Japan, Europe and the USA.



Jan Fineman, Chief Executive of Xaar said :



'This licence represents an important step for Xaar as it extends the
opportunities  for our  technology to become more widely used in the
important US market.  It marks a  very encouraging conclusion to a year of
significant progress for Xaar.'



                                     Ends



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

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