Trading Update

Xaar PLC
19 July 2002


FOR IMMEDIATE RELEASE                                             19 July 2002

                                    Xaar plc

                            PERIOD-END TRADING UPDATE

Xaar plc ('Xaar'), the ink jet printing technology group headquartered in
Cambridge, today provides a trading update ahead of its financial results for
the half year to 30 June 2002 due to be announced on 18 September.

The transfer of volume production from Cambridge to its larger Swedish facility
has now been successfully completed.

Xaar is pleased to report that demand for its XaarJet range of own-manufactured
printheads continues to be strong.  In particular, demand from Asia is growing
significantly.  Demand is expected to increase further in 2003, and the board
has approved capital expenditure of £2 million at the Swedish plant to meet
capacity requirements.  This upgrade should be completed by the first quarter of
next year.

The company continues to be cash generative.



                                      Ends


Jan Fineman, Chief Executive        Xaar                      01223 423663
Nigel Berry, Finance Director

Lisa Baderoon                       Buchanan Communications   020 7466 5000





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