For Immediate Release                                                                                                    10 October 2008

NIPSON DIGITAL PRINTING SYSTEMS PLC ('Nipson' or 'the Company')

TRADING UPDATE

The total sales for the third quarter of the year to 30 September 2008 were encouraging at £7.4 million (Second Quarter 2008: £6.4m), bringing the total sales for the first 9 months of 2008 to £21.4 million (2007: £18.9m). 

Equipment sales were up on previous quarters of 2008 at £2.4 million to reach £6.3 million for the first 9 months (2007: £4.9m). Recurrent revenues were slightly up at £5.0 million for the third quarter and at £15.1 million for first nine months (2007: £14.0m). 

These figures are subject to an audit review and the third quarter results are expected to be announced no later than 20 November 2008. 

However, the French subsidiary of the Nipson Group, Nipson SAS, is currently under severe financial constraints and a restructuring plan is in the process of being defined. It is not possible to determine at this time if the restructuring plan will be sufficient to redress the situation.  The continued losses of the French company and the increase in the Group's activity require additional funding of its working capital beyond the levels agreed with its bankers and its major shareholder, Polar.  

The Company has been working with Polar for some time to secure additional sources of financing for the business.  The company is currently in discussion with third parties concerning an equity-debt transaction. 

Robert Cahill

Group Finance Director on behalf of the Board

Nipson DPS plc

Tel. : +33 (0)3 84 545 250

Roland Cornish/Rosalind Hill Abrahams

Beaumont Cornish Limited

Tel. : 0207 628 3396