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For Immediate Release

29 June 2009

NIPSON DIGITAL PRINTING SYSTEMS PLC

Financial restructuring

Background

All concerned parties, and in particular all shareholders and holders of warrants or options are referred to the different announcements and in particular the announcement made on 13 May 2009 concerning the financial restructuring of the Nipson Group as well as to the different notes contained in the 2008 Annual Report & Accounts.  These documents are all available for viewing or downloading on the Investors AIM Rule 26 section of the Group's website: www.nipson.com

On 7 April 2009, Nipson announced that the reorganisation plan would necessitate the forgiveness/conversion of debt and that this was likely to be a Related Party Transaction under the AIM Rules.

On 13 May 2009, Nipson entered into an agreement (the 'Debt Restructuring Agreement') with its main operating subsidiary, Nipson SAS, a company incorporated in France, and Creacorp, the beneficial owner of 22,992,709 ordinary shares in the capital of Nipson ('Ordinary Shares'), representing 43.96% of the current issued and outstanding Ordinary Shares, pursuant to which:

• of the total amount owed by Nipson SAS to Nipson, Nipson agreed to capitalise 6% and waive the remaining 94% ; and

• of the total amount owed by Nipson SAS to Creacorp, Creacorp agreed to capitalise 6% and waive the remaining 94%.

As a result of the capitalisation of debt set out in the Debt Restructuring Agreement, Nipson's percentage holding of shares in the capital of Nipson SAS would be reduced from 100% to 52.3%, with Creacorp holding the remaining 47.7%.

The Board also announced that The Debt Restructuring Agreement had been entered into as part of a proposal placed before the French court at Belfort by the management of Nipson SAS as part of the French administration ('Redressement Judiciaire') procedures which are ongoing in relation to Nipson SAS. 

At that time, Nipson had hoped that the Redressement Judiciaire procedure relating to Nipson SAS could be concluded within the timetable set by the Court, being at or shortly after the next scheduled meeting with the French Court on 23 June 2009, and that the Group could thereafter be able to resume its operations under the full control of the Board.  The expected meeting of the 23 June has been delayed but will now be held on 30 June 2009.

Details of the transaction

On the 26 June 2009, the transaction as summarised above was enacted at Nipson SAS's extraordinary shareholders meeting held in Belfort by which:

• of the total amount owed by Nipson SAS to Nipson of €7,673,368, Nipson capitalised €458,600 (approx 6%) and waived the remaining €7,241,768 (approx 94%) ; and

• of the total amount owed by Nipson SAS to Creacorp of €14,541,377, Creacorp capitalised €874,280 (approx 6%) and waived the remaining €13,667,097 (approx 94%).

As a result of this transaction, Nipson retains its majority position in Nipson SAS with 52.3% (Creacorp holding the remaining 47.7%), which secures management fees to flow from Nipson SAS to Nipson. 

Related party transactions

The Debt Restructuring Agreement (to which the Company is a party) is a Related Party Transactions under AIM Rule 13 as Creacorp currently has beneficial entitlement to 43.96% of the Company's issued and outstanding Ordinary Shares. 

As previously announced, the independent Directors not being interested in these transactions, having consulted the Company's Nominated Adviser, consider that the terms of the above detailed Debt Restructuring Agreement and its enactment this day are fair and reasonable insofar as Shareholders are concerned. 

Certain other proposals, which may constitute Related Party Transactions under AIM Rule 13, have yet to be formalised, approved or decided upon. These include the possible sale of the French Service business and the transfer of subsidiaries of Nipson SAS to Creacorp for a consideration. Any such transactions will be reviewed by the Independent Directors in consultation with the Company's Nominated Adviser.

Takeover Code

Although the Company is incorporated in England, the place of central management of the Company is currently located outside of the UK, the Channel Islands and the Isle of Man because the main place of business is in France.  Accordingly, the Company is one to which paragraph 3(a)(ii) of the Takeover Code does not apply, and the Panel has confirmed that the Company is not subject to the Takeover Code and shareholders will not be afforded any protection under the Code. 

If circumstances change, including if changes to the Board are made, the Company will consult with the Panel to ascertain whether this will affect the central place of management of the Company.  If the Panel determines that, as a result of such changes, the Takeover Code becomes applicable to the Company, an announcement will be made. 

Shareholder's Meeting

The Company confirms that a general meeting of shareholder's is to be held tomorrow the 30 June 2009 at 11:00 am at the Company's registered office at 110 Cannon Street, London in the buildings of K & L Gates. The meeting has been called for the purpose of considering in accordance with s142 of the Companies Act 1985 whether any, and if so what, steps should be taken to deal with the situation that the net assets of the Company are less than half of its called up share capital and the transaction of the ordinary business pertaining to the Annual General Meeting as per the notice to the meeting issued with the Annual Report & Accounts on 8 June 2009 and also announced 9 June 2009. 

For further information please contact:

Robert Cahill                                                            Tel. : +33 (0)3 84 545 250

Non-Executive Director on behalf of the Nipson DPS plc Board

Roland Cornish/Rosalind Hill Abrahams                     Tel. : 0207 628 3396

Beaumont Cornish Limited

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