9th Aug 2006 07:00
Xaar PLC09 August 2006 FOR IMMEDIATE RELEASE 9 August 2006 Xaar plc UPDATE ON TRADING IN CHINA The company has been informed that certain of its Chinese customers, accountingfor around 15% of Xaar's total revenue, are being investigated by the Chinesecustoms authorities over alleged non-payment of import duty. Xaar itself is nota party to the investigation but is co-operating with customs officials. Xaar was notified by the authorities of the impending investigation on 19thJuly, but at that time did not consider it would have a material effect onsales. Digital printing is a high profile growth industry in China which hasattracted similar investigations before, with little or no impact on thecompany. It has now become apparent, however, that the current investigation is beingcoordinated by central customs authorities, rather than by local officials ashas previously been the case. This is likely to increase the period of theinvestigation and its impact on current trading which remains belowexpectations. It is the company's aim that results for the full year should be similar tothose reported for 2005 but, until the current investigation has run its course,it is not possible to quantify accurately the impact it will have on the timingof sales over the remainder of the year. A further update will be issued with the interim results which are scheduled forrelease on 13th September. Contacts Xaar plc: 01223-423663Ian Dinwoodie, Chief Executive www.xaar.co.ukNigel Berry, Group Finance Director & DeputyChief Executive Bankside Consultants:Steve Liebmann/Simon Bloomfield 020-7367-8888 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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