Licence Upgrade

Xaar PLC
8 June 2001


FOR IMMEDIATE RELEASE                                               8 June 2001


                                   Xaar plc

                        XAAR ANNOUNCES LICENCE UPGRADE

Xaar plc ('Xaar'), the Cambridge-based ink jet printing technology company,
today announced that Toshiba TEC Corporation have upgraded their Licence
Agreement to cover Xaar's entire patent portfolio. The identity of Toshiba TEC
Corporation as a licensee has not previously been disclosed.

                                    Ends

Jan Fineman, Chief Executive or Gordon MacLeod, Finance Director at Xaar on
Tel: [phone]

Steve Liebmann or Lisa Baderoon at Buchanan Communications on
Tel: [phone]