For Immediate Release                            

7 April 2009

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

TRADING UPDATE

Today's announcement is an update on the announcement made by the Company on the 30 January 2009.  At that time the Board expected to circularise shareholders with an explanatory notice and an agenda for an Extraordinary General Meeting.  Since the nature of the transaction has yet to be determined the Board is not yet in a position to call an EGM, if required.  However, the Board remains in discussions with the different parties in respect to the restructuring of the Group's debt and equity and the outcome of the protective administration of its French subsidiary, Nipson SAS (the Subsidiary).

The negotiations with the Administrator concerning the Subsidiary's exit from the administrative process and protection are now in their final stages.  The French courts and the administrator have indicated that the Company and Creacorp, its majority controlling shareholder, must either forgive the entire debt owed to them by the Subsidiary or convert all or part of the debt into capital.  This may give rise to a Related Party transaction in accordance with Rule 13 of the Aim Rules and will be dealt with accordingly.

The negotiations may or may not lead to a satisfactory outcome for the Company. The Board has continued to look at the alternatives open to the Company. The Board will review the financial situation of the Company once the negotiations with the administrator and the courts have been finalised.  Once the outcome of the negotiations is known and the process finalised the Board will make a further announcement. Until a successful outcome has been achieved the future of the Company cannot be assured.

The total sales for the last quarter of the year to 31 December 2008 were less than expected at £5.5 million (2007: £8.1m), the reasons for which have already been aired. This brings the total sales for 2008 to £27.2 million (2007: £27.0m). However, the movement of the exchange rates between the Pounds Sterling and the Euro can be misleading as sales in Euros dropped considerably. 

Equipment sales were substantially down on previous quarters of 2008 at £0.3 million to reach £6.8 million for the full year (2007: £8.1m) leading to heavy factory operating losses. Recurrent revenues, which for the major part of 2008 had continued to increase steadily, declined in the fourth quarter at £5.2 million and finished at £20.5 million for the full year (2007: £18.9m).  Although the recurrent revenues were higher in the earlier months of 2008, margins were under pressure from both exchange rates and higher material costs.  Operating losses, and exceptional losses resulting from restructuring costs, have yet to be determined but will be material to the 2008 accounts. 

The figures are all subject to audit. Since the Company no longer reports quarterly results, the Group will not be issuing preliminary results.  The Board expects to circularise the shareholders in the beginning of May with the Annual Report and Accounts for 2008 and the notice of the Annual General Meeting which is to be held in June.

Contacts :

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

or Robert Cahill, Group Finance Director                                                    +33 (0) 684 930 422

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