Ink Jet Collaboration with Domino

Xaar PLC
22 February 2000



                        XAAR PLC
                            
     XAAR AND DOMINO ANNOUNCE INK JET COLLABORATION
                            
First product to be shown at CeBIT - the world's largest
IT and digital printing exhibition held annually at
Hanover.


Two of the world's leading ink jet printing players, Xaar
plc and Domino Printing Sciences plc, have announced that
they are working together to develop new solutions for
the case coding market.

Under the terms of the agreement, Domino will become a
major customer for the XaarJet 500 series of printheads.
The first fruits of the collaboration will be seen on
Xaar's stand at next week's CeBIT exhibition, in the form
of a pre-production product for the case coding market.
The commercial launch of the new product is expected
later this year.

Both companies are based in Cambridge, UK, which led
Graham Wylie, chief executive of Xaar plc, to say that
the agreement 'establishes Cambridge as the ink jet
capital of Europe.  We are delighted to be working
closely with Domino on this project.'

Nigel Bond, chief executive officer of Domino Printing
Sciences plc, explained that the company assessed several
alternative ink jet technologies, but believes that
Xaar's technology is best suited to its needs.  'Our
collaboration with Xaar puts us in a key position to
become a major player in the case coding market
worldwide.  It is also an exciting opportunity to
leverage the piezo ink jet expertise, which is
effectively on our doorstep'.

                                                        
Graham Wylie, Chief Executive or
Jonathan Lowe, Finance Director at Xaar on:
01223-423 663

Steve Liebmann or Lisa Baderoon at Buchanan
Communications on:   
0207-466 5000