For Immediate Release 

30 January 2009

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

TRADING UPDATE

The Company made a number of announcements during October and November 2008 explaining the change of majority shareholder control, the changes in the configuration of the Board, the Group's third quarter results and the financial difficulties experienced by its French subsidiary, Nipson SAS (the Subsidiary), which led to the Subsidiary filing for administrative protection.  The Board indicated to shareholders in November that it would communicate any major developments in the months to come.

During December 2008 the Administrator and the French commercial court agreed to the Subsidiary continuing to trade which has led to a reduction in fixed costs including the departure of more than 50% of the employees in the Subsidiary.  A number of cost reductions have also been implemented in the Group companies in the USA and in the UK; branches in Belgium and Singapore have also been closed. 

The economic crisis has delayed investment decisions by potential and existing customers to purchase new equipment.  The existing installed base of equipment at customer sites are generally running at a lower level of activity whether maintained by distributors or directly by Nipson and as a result recurrent sales including consumables and spare parts are lower than originally forecast which with lower equipment sales lead to lower revenues than expected for both the fourth quarter and for the year 2008. 

The situation is therefore still critical but significant progress has been made in line with the original business plan.

The Company's Board has now decided to review the debt and equity structure of the Group.  This restructuring will require approval from the Company's shareholders.  Within the coming weeks the Board expects to circularise shareholders with an explanatory notice and an agenda for an Extraordinary General Meeting to be held probably in early March. 

Robert Cahill has also indicated for personal reasons that once the Group's debt and equity restructuring has been put into place he will be resigning from his position as CFO and Board member. 

Contacts :

Nipson Digital Printing Systems PLC : Marc Maes, Chairman    +32 (0) 494 500 423 

or Robert Cahill, Group Finance Director    +33 (0) 384 545 250

Beaumont Cornish Limited : Roland Cornish/Rosalind Hill Abrahams    0207 628 3396