Period-end trading update

Xaar PLC
12 January 2006



FOR IMMEDIATE RELEASE                                            12 January 2006




                                    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 2005.

Xaar is pleased to report that trading remained strong during the second half of
the year and the results for the twelve months ended 31 December 2005 were ahead
of market expectations. Reported under IFRS, sales were approximately £42.8m and
profit before tax (and foreign exchange movements on inter-company loans) was
approximately £11.0m (under UK GAAP, the comparable numbers were £42.7m and
£10.5m respectively). Cash at the end of the year was £14.4m reflecting
increased capital expenditure, working capital movements and funding of
purchases of the company's own shares by its ESOP Trust.

In September of this year the group announced plans to establish a second
manufacturing facility in the UK. A suitable building has now been selected in
Huntingdon, Cambridgeshire and a lease is currently being finalised. The plant
is scheduled to be operational by the end of 2006.



ANNOUNCEMENT OF PRELIMINARY RESULTS FOR 2005

Detailed results for the year to 31 December 2005 will be released on Tuesday 14
March 2006.

                                      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                                     020-7367-8883 / 07802-888159




                      This information is provided by RNS
            The company news service from the London Stock Exchange