For Immediate Release

10 July 2009

NIPSON DIGITAL PRINTING SYSTEMS PLC

Financial Restructuring

The Board is pleased to announce the following update to the announcement made the 30 June 2009 concerning the financial restructuring of its French subsidiary, Nipson SAS ('the Subsidiary'). 

Following a special audience of the French Courts in Belfort the 3 July 2009, the court signed on the 7 July the approval of the Subsidiary's restructuring plan along the lines of the project agreed with Creacorp, the controlling shareholder of the Group since October 2008. This document enables the Subsidiary under certain restrictions (principally relating to the creditor payment plan) to leave the 'Redressement Judiciaire'  administration procedure and now resume its activities under the full control of the Nipson Board. 

Guillaume Dumarey, Managing Director of Nipson Plc and Sales and Marketing Director of Nipson SAS showed his satisfaction with the outcome:  'The management and the new shareholder have always believed in the company's future and the added-value of its unique technology.  We are very pleased that all our efforts of the past eight months have been worth it.  While there is no sign of a market recovery in the short term, we are confident that we have now ensured our readiness to cope with the economic crisis.  That we are able to leave the procedure of Redressement Judiciaire during these times of global financial turmoil strengthens our conviction that we are on the right track.'

The restructuring activities have not prevented the company from progressing further.  The plan, involving substantial cost-cutting measures, has been virtually fully implemented.  Despite a significant reduction in headcount by 50%, the company considers to have retained the necessary competencies and its unique know-how.  In February the Group launched the DIGIFlex, its new black & white digital press, and other developments are underway for the black & white segment as well as for another market segment.  

The approval by the French Courts concerning both the planned new assembly and logistics center in Boizenburg, where state of the art production and demo facilities are already fully operational, and the  expected start of a new sales subsidiary in France, to be set up in collaboration with its former distributor 2J Printing Services, were already announced as in process by the Company on the 14 May 2009.  The implementation of these plans will be a related party transaction under the AIM Rules and a separate announcement will be made in due course in accordance with the AIM Rules.

For further information please contact:

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

Independent Director on behalf of the Board of Nipson DPS plc

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

Beaumont Cornish Limited