Interim Results

XP Power PLC
05 August 2003



Embargoed until 0700                              5 August 2003

                         XP Power plc
                     ('XP' or 'the Group')

     Interim Results for the six months ended 30 June 2003

XP,  one  of  the  world's leading providers of  power  supply
solutions  to the mid-tier of the electronics industry,  today
announces  its interim results for the six-month period  ended
30 June 2003.

Highlights

                             Six months     Six months
                                  ended          ended
                           30 June 2003   30 June 2002

Profit and loss (refer
to page 4 of 9)

Turnover                         £29.1M         £33.0M
Turnover
Gross profit                      £9.7M         £10.2M
Gross margin                      33.3%          30.9%

Profit before tax                 £0.9M          £0.2M
Profit before tax and
 goodwill amortisation            £1.7M          £0.9M
Basic and diluted
 earnings per share                2.0p         (1.0)p
Diluted earnings per
 share adjusted for
 goodwill amortisation             5.9p           2.9p
Interim dividend per share         5.0p           5.0p


Cash flow (refer to
page 6 of 9 )

Cash inflow                       £0.7M          £2.8M
Free cash flow                    £3.0M          £4.4M


- Profit before tax and amortisation of goodwill up 89% to
  £1.7 million

- Third successive half year period of earnings per  share
  improvement

- Sixth successive half year period of improvement in gross
  margin percentage due to further development of XP own brand
  product range

- Continental European operations now at break even

- Free cash flow of £3.0 million generated in the period

Larry  Tracey, Executive Chairman commented:  'XP  is  soundly
positioned  in  this  tough  environment.  Costs   have   been
vigorously  managed  and efficiency gains achieved  whilst  we
have  simultaneously expanded our geographical sales  presence
and  product  offering. Our expectation  is  for  the  current
challenging  market conditions to persist  for  the  immediate
future. However, we continue to outperform the competition and
we  believe that the benefits of focusing on our own XP  brand
will  put  us  in a strong position to further increase  gross
margins and benefit from an upturn.'

Enquiries:

XP Power plc                                      0118 976 5028
Larry Tracey, Executive Chairman
James Peters, Deputy Chairman
Duncan Penny, Chief Executive Officer

Weber Shandwick Square Mile                       020 7067 0700
Kevin Smith or Sally Lewis


Notes to editors:

XP  Power  plc, formerly IFX Power plc, provides power  supply
solutions to the mid-tier market of the electronics industry.

All  electronic equipment needs a power supply. Power supplies
convert  the  incoming  AC supply into various  levels  of  DC
voltages  to  drive  electronic components and  sub-assemblies
within  the end user's equipment. By servicing this market  XP
Power  provides  investors  with  access  to  technology   and
industrial markets through its 8,000 strong customers  in  the
profitable, high margin, mid-tier sector of the North American
and European markets.

The mid-tier of the market is highly fragmented and made up of
a  large  number  of small to medium sized Original  Equipment
Manufacturers who source standard and modified standard  power
supplies from several hundred power supply companies.

For further information, please visit www.xppower.com





Embargoed until 0700                              5 August 2003
                         XP Power plc
         ('XP' or 'the Group' formerly IFX Power plc)

     Interim Results for the six months ended 30 June 2003

                     CHAIRMAN'S STATEMENT

Trading  conditions in the first half have remained  difficult
but against this background I am pleased to report that XP has
once again improved its profitability and gross margin as well
as generated free cash flow.

Financial Performance

Like  many  other  businesses  operating  in  the  electronics
industry,  we continue to experience weak demand  in  the  end
markets  we serve.  Our response to this prolonged  period  of
depressed  market  conditions  has  been  to  seek   out   new
geographic  markets  in both Europe and North  America  and  a
continued focus on gross margin enhancement.

The  development  of  our  own XP branded  products  has  been
crucial  to the process of generating higher gross margins  on
product  sales.  Gross margins improved to 33.3% in the  first
half  of  2003 compared with 30.9% in the same period  a  year
ago. This is the sixth successive half yearly report where  we
have   demonstrated  an  improvement  in  the   gross   margin
percentage   and  has  been  achieved  during  a   period   of
unprecedented price pressure in the industry. The  improvement
in  gross  margins is the result of our strategy of moving  up
the value chain. In the first half of 2003 49% of our revenues
came  from our own branded product compared to 43% in the same
period a year ago. The main driver of the Group's gross margin
performance  has  been  its ability to  deliver  power  supply
solutions  which  meet  the  needs of  our  customers,  either
through  our  own XP branded products or our value  added  and
design engineering capabilities.

As  we  rapidly  expanded our own XP branded product  offering
certain manufacturers who we had traditionally represented  in
the market place as a distributor increasingly began to see XP
as  a competitor. As expected, implementation of this strategy
has  brought a number of these relationships to an end in  the
past  year.  This  factor, as well as the further  decline  in
demand  from the technology end markets in the second half  of
2002,  contributed to a decline in revenues  compared  to  the
same  period  a  year ago, particularly in  the  US.  However,
despite  reduced  revenues, I am pleased to report  our  third
successive  period of increased earnings per  share  resulting
from  an  improvement in gross margins and the cost reductions
which  were made in Continental Europe during the second  half
of 2002.

European revenues were flat at £11.0 million compared  to  the
same  period  a  year  ago, however our  Continental  European
operations  are  now making a small operating profit  compared
with  an  operating loss of £0.8 million in the same period  a
year  ago.  Again,  this is due to cost reduction  initiatives
which  were  taken  in the second half of 2002  together  with
improved gross margins in that region.

The  overall result is that profit before tax and £0.8 million
of  goodwill  amortisation  was £1.7  million,  up  from  £0.9
million  in  the same period a year ago (refer to  profit  and
loss  account  on page 4). Basic earnings per share  were  2.0
pence  compared with a loss of 1.0 pence in the same period  a
year  ago. Earnings per share before amortisation of  goodwill
were  5.9  pence compared with 2.9 pence in the same period  a
year ago.

Dividend

The  Group  has declared an interim dividend of 5.0 pence  per
share  for the six months ended 30 June 2003 (2002: 5.0  pence
per  share).  The interim dividend will be paid on  8  October
2003 to shareholders on the register at 5 September 2003.

Cash Flow and Share Buy Back

The  net cash inflow for the six months to June 2003 was  £0.7
million compared with £2.8 million in the same period  a  year
ago (refer to cash flow on page 6). The period under review is
XP's  fourth successive half yearly period of free  cash  flow
generation  (cash  flow  before  acquisitions,  dividends  and
financing). The Group generated £3.0 million of free cash flow
in  the six months to June 2003, illustrating the benefits  of
our cash generative business model.

In  early  May we purchased 470,000 of our own shares  in  the
market  at an average price of 108.5 pence per share. In  view
of  the  high  yield  on our own shares  and  the  absence  of
suitable  acquisition targets, we considered a share buy  back
to  be  the best use of the cash resources available to us  at
this time.

Net debt was £6.7 million at the end of June 2003 compared  to
£7.8  million at the end of December 2002.  It is pleasing  to
report  a  £1.1  million improvement in our net debt  position
despite returning £1.9 million pounds to shareholders  in  the
same period in the form of our final dividend for 2002 of £1.4
million and a share buy back of £0.5 million.

Change of Name

Having  standardised on 'XP' as the Group's global brand,  the
Group changed its name to XP Power plc with effect from 2  May
2003.  The change gives greater consistency between the parent
and  the  operating businesses and eliminates  confusion  when
interfacing with our customers and manufacturing partners.

New Product Development and Moving up the Value Chain

Over the past two years the Group has placed great emphasis on
the  release  of  new products to expand its  own  XP  branded
product   line.   A  record  37  new  product  families   were
introduced  during  2002 in addition to  the  30  new  product
families  introduced in 2001.  We consider that the Group  now
has  the  broadest  product offering of  any  company  in  the
industry.   Furthermore, these products have been specifically
developed to meet the needs of the customers we serve  in  the
mid-tier of the market.  In June this year we launched our new
219  page  XPiQ  catalogue in the US. These new  products  are
gradually  making  up  an ever increasing  proportion  of  our
revenues  and contributing to the consequent increase  in  our
gross margins.

Having  rapidly  expanded  our own product  line  we  are  now
focusing our engineering resources on the development  of  the
next generation of our configurable power supply offering.

Outlook

The electronics market remains a tough environment in which to
operate.   Many  of  our  customers still  lack  the  business
confidence  to  launch  new programmes into  which  our  power
supplies  are  designed.   Furthermore,  some  customers   are
continuing to manage their inventory levels very tightly, such
that  they will often only place orders when they have  orders
from their customers.

Against  this backdrop I am pleased that XP Power has remained
profitable, one of the few power supply companies in the world
to  do  so,  while at the same time expanding its geographical
sales  presence  and product offering. The  Group's  resilient
performance comes at a time when many of our competitors  face
financial  difficulties and are cutting back both their  sales
forces and product development capabilities. These actions can
only  strengthen XP's relative market position in  the  medium
term.

While  we can see no quantum change in the underlying  markets
XP serves, we believe that the strategy we have adopted should
result  in  gradually improving revenues and  margins  in  the
medium term.

Larry Tracey
Executive Chairman
5 August 2003
XP Power plc



XP Power plc
Consolidated Profit and Loss Account (Unaudited)
For the six months ended 30 June 2003

£ Millions                    Note        Six months     Six months
                                               ended          ended
                                        30 June 2003   30 June 2002


Turnover                        2              29.1           33.0
Cost of sales                                 (19.4)         (22.8)
                                        ___________________________
Gross Profit                                    9.7           10.2
                                        ___________________________

Amortisation of goodwill                       (0.8)          (0.7)
Depreciation                                   (0.3)          (0.3)
Other operating expenses                       (7.5)          (8.8)
                                        ___________________________
Total operating expenses                       (8.6)          (9.8)
                                        ___________________________

Group operating profit          2               1.1            0.4

Earnings before interest, tax,
 depreciation and amortisation                  2.2            1.4


Share of associates' operating
 profit                                         0.1            0.0

                                        ___________________________
Total operating profit                          1.2            0.4
                                        ___________________________

Interest payable and similar
 charges                                       (0.3)          (0.2)

                                        ___________________________
Profit on ordinary activities
 before taxation                                0.9            0.2
                                        ___________________________

Tax on profit on ordinary
 activities                     3              (0.5)          (0.3)

                                        ___________________________
Profit/(loss) on ordinary
 activities after taxation                      0.4           (0.1)
                                        ___________________________

Equity minority interests                         -           (0.1)
                                        ___________________________

Profit/(loss) for the period
 attributable to XP shareholders                0.4           (0.2)
                                        ___________________________

Dividends payable               4              (1.0)          (1.0)
                                        ___________________________

Retained loss for the period                   (0.6)          (1.2)
                                        ___________________________


Basic and diluted
 earnings/(loss) per share      5              2.0p         (1.0)p
Basic and diluted earnings per
 share adjusted for goodwill
 amortisation                   5              5.9p           2.9p

Statement of total recognised
 gains and losses
Profit attributable to XP
 shareholders                                  0.4           (0.2)
Dividends                                     (1.0)          (1.0)
Currency translation
 differences                                  (0.5)          (0.9)
Total recognised losses
 related to the period                        (1.1)          (2.1)



XP Power plc
Consolidated Balance Sheet (Unaudited)
At 30 June 2003

£ Millions                         At 30 June At 31 December   At 30 June
                                         2003           2002         2002

Fixed assets
Intangible assets                       22.2           23.0         23.6
Tangible assets                          3.2            3.4          3.6
Own shares                               0.4            0.4          0.5
Investments                              0.8            0.8          0.4
                                   ______________________________________
                                        26.6           27.6         28.1
                                   ______________________________________

Total fixed assets

Current assets
Stock                                    7.4            7.7          9.3
Debtors                                 10.6           10.8         13.6
Cash at bank and in hand                 5.1            4.4          4.3
                                   ______________________________________

Total current assets                    23.1           22.9         27.2
                                   ______________________________________


Creditors: amounts falling due
 within one year                       (13.0)         (12.6)       (14.3)

Net current
 assets/(liabilities)                   10.1           10.3         12.9

                                   ______________________________________
Total assets less current
 liabilities                            36.7           37.9         41.0
                                   ______________________________________

Creditors: amounts falling due
 after more than one year               (8.6)          (8.2)        (9.5)

                                   ______________________________________
Net assets                              28.1           29.7         31.5
                                   ______________________________________


Capital and reserves
Called up share capital                  0.2            0.2          0.2
Share premium account                   27.0           27.0         27.0
Merger reserve                           0.2            0.2          0.2
Profit and loss account                  0.1            1.7          3.8
Total equity shareholders' funds        27.5           29.1         31.2
Minority interests                       0.6            0.6          0.3

                                   ______________________________________
Total capital and reserves              28.1           29.7         31.5
                                   ______________________________________


These  financial  statements were approved  by  the  Board  of
Directors on 4 August 2003.


XP Power plc
Consolidated Cash Flow (Unaudited)
For the six months ended 30 June 2003

£ Millions                      Note      Six months     Six months
                                               ended          ended
                                        30 June 2003   30 June 2002


Net cash flow from operating
activities                      6               3.5            5.5


Returns on investments and
 servicing of finance
Interest paid                                  (0.3)          (0.3)

Net cash outflow from returns
 on investments and servicing
 of finance                                    (0.3)          (0.3)


Taxation
Tax paid                                       (0.1)          (0.4)


Capital expenditure and
 financial investment
Purchase of tangible fixed
 assets                                        (0.1)          (0.4)


Net cash outflow from capital
 expenditure                                   (0.1)          (0.4)


Free cash flow                                  3.0            4.4


Acquisitions and disposals
Purchase of subsidiaries and
 associated undertakings                          -           (5.4)
Share buy back                                 (0.5)             -

Cash outflow from acquisitions
 and disposals                                 (0.5)          (5.4)

Equity dividends paid                          (1.4)          (1.4)

Cash inflow/(outflow) before
 financing                                      1.1           (2.4)

Financing
New borrowings                                  0.5            5.2
Repayment of borrowings                        (0.9)             -

Net cash (outflow)/inflow from
 financing                                     (0.4)           5.2
                                           ________________________

Cash inflow                     7               0.7            2.8
                                           ________________________


XP Power plc
Notes to the Interim Results for the six months ended 30 June
2003

1. Basis of preparation

Accounting convention
The   financial  statements  have  been  prepared  under   the
historical  cost convention and in accordance with  applicable
United Kingdom accounting standards.

Basis of consolidation
The Group has accounted for the acquisition of XP PLC and Forx
Inc.  using  the  merger method of accounting  and  all  other
acquisitions  have  been accounted for using  the  acquisition
method  of  accounting in accordance with Financial  Reporting
Standard 6, 'Acquisitions and Mergers'.

Goodwill and intangible fixed assets
For  acquisitions of a business, where the acquisition  method
of accounting is adopted, purchased goodwill is capitalised in
the  year  in which it arises and amortised over its estimated
useful  life up to a maximum of 20 years. The directors regard
20 years as a reasonable maximum for the estimated useful life
of  goodwill.  Capitalised purchased goodwill  in  respect  of
subsidiaries is included within intangible fixed assets.

Tangible fixed assets
Depreciation  is provided on cost in equal annual  instalments
over  the  estimated useful lives of the assets. The rates  of
depreciation are as follows:

Plant and machinery                -    25-33%
Motor vehicles                     -    25%
Office equipment                   -    25-33%
Leasehold improvements             -    10% or over the life of the
lease if shorter
Long leasehold land and buildings  -    Term of the lease

Investments
Investments  held  as  fixed assets are stated  at  cost  less
provision for impairment if applicable.

Stocks
Stocks  are  stated  at the lower of cost and  net  realisable
value.  Cost  represents materials and  appropriate  overheads
based on the normal levels of activity.

Deferred taxation
Deferred taxation is provided in full on timing differences
that result in an obligation at the balance sheet date to pay
more tax, or a right to pay less tax, at a future date, at
rates expected to apply when they crystallise based on current
tax rates and law.  Timing differences arise from the
inclusion of items of income and expenditure in taxation
computations in periods different from those in which they are
included in financial statements.  Deferred tax assets are
recognised to the extent that it is regarded as more likely
than not that they will be recovered.  Deferred tax assets and
liabilities are not discounted.

Foreign exchange
Transactions denominated in foreign currencies are  translated
at the rates ruling at the dates of the transactions. Monetary
assets  and  liabilities denominated in foreign currencies  at
the  balance sheet date are translated at the rates ruling  at
that date. These translation differences are dealt with in the
profit and loss account.

The results of overseas subsidiary undertakings are translated
in  sterling  at  average rates for the period.  The  exchange
differences arising as a result of restating retained  profits
to closing rates are dealt with as a movement on reserves.

Leases
Rental  costs under operating leases are charged to the profit
and  loss account in equal instalments over the period of  the
leases.


2. Segmental analysis

The Group operates substantially in one class of business, the
provision   of  power  supply  solutions  to  the  electronics
industry.  Analysis  of  total  Group  operating  profit,  net
assets,   turnover  and  total  Group  operating   profit   by
geographical region is set out below.

£ Millions                          Six months       Six months
                                         ended            ended
                                  30 June 2003     30 June 2002

Turnover
Europe                                   11.0             11.0
United States                            18.1             22.0
                                  ____________     ____________
Total turnover                           29.1             33.0
                                  ____________     ____________


Group operating profit
Europe                                    1.0             (0.2)
United States                             0.1              0.6
                                  ____________     ____________
Total Group operating profit              1.1              0.4
                                  ____________     ____________


                                    At 30 June       At 30 June
                                          2003             2002

Operating Net Assets
Europe                                    7.5              8.2
United States                            28.3             32.9
                                  ____________     ____________
Total Operating Net Assets               35.8             41.1
                                  ____________     ____________


Operating  net assets are defined as net assets  adjusted  for
net borrowings and the proposed dividend.


3. Taxation

£ Millions                          Six months       Six months
                                         ended            ended
                                  30 June 2003     30 June 2002

Europe                                    0.2              0.2
United States                             0.3              0.1
                                  ____________     ____________
Total taxation                            0.5              0.3
                                  ____________     ____________


4. Equity dividends

An interim dividend of 5p (2002: 5p) per share will be paid on
8 October 2003 to shareholders on the register of members on 5
September 2003.


5. Earnings per share

£ Millions                              Six months   Six months
                                                to           to
                                      30 June 2003 30 June 2002

Profit/(loss) attributable to XP
 shareholders for the financial
 period for basic earnings per
 share                                        0.4         (0.2)

Amortisation of goodwill                      0.8          0.7

Earnings for adjusted earnings
 per share                                    1.2          0.5

Weighted average number of
 shares (thousands) (basic)                20,370       20,514

Weighted average number of
 shares (thousands) (diluted)              20,370       20,632

Supplementary earnings per share figures are presented to
exclude the effect of goodwill amortisation as the board
regards this to be more meaningful.


6. Reconciliation of operating profit to net cash inflow from
operating activities

£ Millions                        Six months        Six months
                                       ended             ended
                                30 June 2003      30 June 2002

Operating profit                        1.1               0.4
Depreciation and
 amortisation                           1.1               1.0
Decrease in stocks                      0.3               2.2
Decrease in debtors                     0.2               0.8
Increase in creditors                   0.8               1.1
                                ____________      ____________
Net cash inflow from
 operating activities                   3.5               5.5
                                ____________      ____________


7. Reconciliation of net debt

£ Millions                        Six months        Six months
                                       ended             ended
                                30 June 2003      30 June 2002

Net debt at 1 January                  (7.8)             (6.2)
Increase in cash                        0.7               2.8
Cash outflow/(inflow) from
 decrease/(increase) in debt            0.4              (5.2)
                                ____________      ____________
Net debt at 30 June                    (6.7)             (8.6)
                                ____________      ____________

Represented by
Cash at bank and in hand                5.1               4.3
Overdraft/Revolving Credit
 Facility                             (11.8)            (12.9)
                                ____________      ____________
Net debt at 30 June                    (6.7)             (8.6)
                                ____________      ____________


8. Borrowings

In  August 2001 the Group agreed a working capital facility of
£10  million  and a revolving credit facility for acquisitions
of  £20  million committed for three years from  the  Bank  of
Scotland.


9.   Commitments

The  Group is committed to acquiring the remaining 75% of  the
issued  share  capital of MPI-XP Power AG  that  it  does  not
already  own in 2006.  The consideration will be a minimum  of
4.9 million Swiss Francs (approximately £2.2 million).


10. Share buy back

During  May  2003 the company repurchased 470,000 of  its  own
shares  at  an  average price of 108.5 pence per share.  These
shares  were  cancelled and accordingly  a  transfer  of  £0.5
million was made from retained earnings.





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