Trading Update

Xaar PLC
18 October 2000


                        XAAR plc
                            
                     TRADING UPDATE

Further  to  yesterday's  announcement  regarding   Board
changes,   Xaar's  new  Chief  Executive,  Jan   Fineman,
commented  as  follows  on  Xaar's  current  trading  and
prospects.

'Our  trading  performance has been  very  pleasing  over
recent  months and our order book is looking  strong  for
the  remainder  of  the  year.   Our  various  technology
development  programmes  are  proceeding  well   and   in
particular we have made considerable progress on the Page
Wide printing project.'


For further information contact:

Jonathan Lowe, Xaar plc                      01223 423663
Lisa Baderoon, Buchanan Communications      020 7466 5000