Positive Full Year Update

Xaar PLC
10 January 2005


FOR IMMEDIATE RELEASE                                            10 January 2005


                                    Xaar plc

                        POSITIVE FULL YEAR TRADING UPDATE


Xaar plc ('Xaar'), the inkjet printing technology group headquartered in
Cambridge, UK, presents an update on performance for the full year ended 31
December 2004.


Xaar is pleased to announce that sales for the full year are expected to be in
excess of £35.0m (2003: £29.2m), with a profit before tax (and foreign exchange
movements on inter-company loans) ahead of expectations at slightly in excess of
£6.0m (2003: loss of £1.3m on a comparable basis). Cash at the year-end was
above £15.0m (2003: £8.5m).


The outlook for 2005 is positive although the group's primary trading currency,
the US dollar, remains weak.


ANNOUNCEMENT OF PRELIMINARY RESULTS FOR 2004


Detailed full year results will be released on 15 March 2005.



                                      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                                    020-7444-4163 / 07802-888159








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