Period End Trading Statement

Xaar PLC
10 July 2007


FOR IMMEDIATE RELEASE                                            10 July 2007

                                    Xaar plc
                            HALF YEAR TRADING UPDATE

Xaar plc ('Xaar'), the inkjet printing technology group headquartered in 
Cambridge, presents an update on performance for the six months ended 30 June 
2007.

Trading

Revenue for the six months to 30 June 2007 was 5% ahead of the same period last 
year at approximately £23.4m (six months to 30 June 2006: £22.3m) and 18% ahead 
of the half year to 31 December 2006 (six months to 31 December 2006: £19.9m).  
In particular, sales to China were up 12% compared to the six months to 30 June 
2006 and substantially ahead of the second half of 2006.

The new Platform 2 and Platform 3 printheads continue to generate significant 
interest and commercial printing products incorporating these printheads are now
in limited release with further products under development.  Although the timing 
of the launch of these further products is not yet fixed, the board is 
encouraged by the level of interest expressed by customers for both these 
printhead platforms.

As previously indicated, the results for the first half year reflect the early 
stage costs associated with the new Huntingdon facility.  Profit before tax for 
the period was approximately £3.1m (30 June 2006: £4.8m), after providing for 
the £1.2m cost (30 June 2006: £nil) for the new Huntingdon facility, 
amortisation of capitalised R&D of £0.5m (30 June 2006: £0.3m) and the cost of 
share options at £0.4m (30 June 2006: £0.3m).

The board remains confident about the prospects for 2007 and a further update 
will be given at the time of release of the group's interim results in 
September.

Cash

Cash at the end of June was approximately £10.0m (30 June 2006: £16.3m, 
31 December 2006: £12.4m). This reflects the payment of the final dividend for 
2006 of £1.2m and capital expenditure on tangible and intangible assets of 
approximately £3.3m.

Announcement of interim results

The detailed interim results will be announced in accordance with Xaar's normal 
timetable on 12 September 2007.

                                      Ends

Contacts

Xaar plc:                                                        01223-423663
Ian Dinwoodie, Chief Executive                                 www.xaar.co.uk
Nigel Berry, Group Finance Director & Deputy
Chief Executive

Bankside Consultants:
Steve Liebmann or Simon Bloomfield               020-7367-8883 / 07802-888159




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