NDP Nipson Dig.

RNS Number:7989J
Nipson Digital Printing Systems PLC
15 March 2005


15 March 2005

This announcement does not and these materials do not constitute an offer to
sell or issue or the solicitation of an offer to buy or subscribe for ordinary
shares in the capital of the Company ("Ordinary Shares") in the United States,
Canada, Australia, Japan or in any jurisdiction in which such offer or
solicitation is unlawful and the information contained herein is not for
publication or distribution, directly or indirectly, in or into Australia,
Canada, Japan or the United States or any jurisdiction in which such publication
or distribution is unlawful.


        Nipson Digital Printing Systems PLC ("Nipson" or the "Company")

   Placing by Teather and Greenwood Limited of 6,000,000 new Ordinary Shares

          and 9,708,385 existing Ordinary Shares at 80 pence per share


Nipson, the manufacturer and distributor of digital printing systems and related
consumables, is pleased to confirm that Teather and Greenwood Limited ("Teather
and Greenwood") has placed, conditional on admission to trading on AIM, which is
expected to be on 31 March 2005, 6,000,000 new Ordinary Shares of 1 pence each,
at 80 pence per share, to raise approximately #4.8 million, before expenses (the
"Placing").  The funds raised will provide working capital to allow the Company
to increase the rate of organic growth and to pursue opportunities in the
growing digital printing market.

Teather & Greenwood has also placed on behalf of the majority shareholder
Koonras BV BVBA Group and certain other shareholders, 9,708,385 existing
Ordinary Shares of 1 pence each, at 80 pence per share (the "Shareholder Placing
").


The Placing and the Shareholder Placing

The Placing, equivalent to approximately 13.6 per cent. of the existing issued
share capital, is being priced at a discount of approximately 4.8 per cent to
the closing mid-market price of 84 pence per Ordinary Share on 14 March 2005.

The Placing Shares have been conditionally placed with institutional investors.
Application wiil be made for the 6,000,000 new Ordinary Shares of 1p each to be
admitted to trading on AIM with effect from 31 March 2005. The new Ordinary
Shares will rank pari passu in all respects with the existing Ordinary Shares in
issue.

The Shareholder Placing of 9,708,385 existing Ordinary Shares of 1 pence each,
includes Ordinary Shares placed as a result of the exercise 2,017,867 warrants
over Ordinary Shares at an exercise price of 56 pence per share.

The Placing and the Shareholder Placing will increase the liquidity in the
existing Ordinary Shares as the free float will increase to approximately 49.25%
of the Company's issued share capital following the Placing, which will be
52,303,581 Ordinary Shares of 1 pence each.

Following the Placing, Koonras BV BVBA Group will hold 50.75% of the issued
share capital.


Background to the Placing

As reported previously, Nipson's performance in the fourth quarter of 2004, with
strong equipment sales and increasing profitability, demonstrated that the
Company is well positioned to achieve strong growth in turnover and
profitability in 2005. Nipson is well positioned to take advantage of the strong
demand for its new products and of an increase in capital expenditure in the
printing industry after a slow period.  The Company continues to look for
operational efficiencies, with a cost structure allowing it to be competitive
whilst margins continue to improve. The funds raised will provide working
capital to take advantage of this and allow the Company to increase the rate of
organic growth.

In North America and Asia, two major target markets for Nipson but where the
Company has historically been under-represented, it has recently taken a number
of steps to increase representation and distribution arrangements.


Alfons Buts, Managing Director, commented:

"We are delighted with the reception from current and new institutional
investors and that the Placing and the Shareholder Placing were heavily
oversubscribed. Nipson will benefit greatly from a broadened shareholder base
and we expect the additional funds to enable the Company to realise its
operational goals."


Enquiries:

Nipson Digital Printing Systems PLC
Alfons Buts, Managing Director                       + 32 3 740 02 00

Teather & Greenwood
Mark Dickenson / Tom Hulme                            020 7426 9000

Bankside Consultants Ltd
Ian Seaton / Simon Bloomfield                        020 7444 4140 / 4157


Note to Editors

Nipson manufactures and distributes black and white digital printing systems
used by direct mailers, outsourcing companies and service bureaux, commercial
printers, security printers, financial institutions, telecom companies and
utilities.

Its products use magnetography, a proprietary technology with proven advantages
over competing technologies including greater reliability, higher print speed
and quality, lower operating costs and better substrate flexibility.

According to Cap Ventures, black and white printing will grow 10% per annum
between 2002 and 2007 from $9.6 billion to $15.5 billion.

Turnover for the fourth quarter of 2004 was up 26% to #8.6 million compared to
the fourth quarter of 2003 (#6.8 million), with profit before tax for the period
of #415,000 (2003: #2.6 million loss).  Equipment sales were up 107% to #3.2
million reflecting the success of the VaryPress 200 and VaryPress 400 launched
at DRUPA in May 2004.

Turnover for the year ended 31 December 2004 was #28.5 million with a pre-tax
loss of #961,000 after exceptional costs of #569,000.

Nipson is under- represented in North America and Asia, two major target markets
which accounted for just 20% and 12% respectively of turnover in 2004.

In February 2005, the company signed a distribution agreement with Pitman, the
largest independent graphic arts distributor in North America.  It is also in
discussion with Pitney Bowes to extend its maintenance coverage in the USA.

Early in 2005, Syntax, the high-end colour digital printing distributor for HP/
Indigo, started to distribute Nipson machines in China.  The company is
currently expanding and upgrading its network in India and expects to add to its
team in Asia over the course of the current year.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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