NDP Nipson Dig.

RNS Number:4037B
Nipson Digital Printing Systems PLC
30 July 2004


                     NIPSON DIGITAL PRINTING SYSTEMS PLC

        Raises #10m to fund growth strategy; first day's dealings on AIM


FRIDAY, 30 July 2004 -- Nipson Digital Printing Systems PLC ("Nipson" or "the
Company"), the global manufacturer of black and white digital printers and
related consumables, announces the commencement today of dealings in its
ordinary shares on the Alternative Investment Market of the London Stock
Exchange ("AIM").

Nipson (AIM: NDP) has raised #10 million before expenses, to fund the expansion
of the Company, through the placing of 14,285,914 ordinary shares of one pence
each at a price of 70 pence per share. Specifically, the company plans to use
the proceeds of the placing to:
          
     *    fund additional sales channels
     *    increase the installed user base and, hence, recurring revenue
          opportunities
     *    continue the research and development on new technologies
     *    repay debts and provide working capital.

Rimon Ben-Shaoul, Chairman, said: "We are delighted with the support we have
received, in difficult financial market conditions, from a group of leading UK
institutional investors. This reflects the quality of Nipson's business and the
opportunity we have to expand profitably in the rapidly growing digital printing
market. We now have the funds necessary to implement our strategy."

Nipson's growth strategy is to:
                              
     *    increase penetration of key markets including the US and Asia
          Pacific
     *    generate recurring revenues from a growing installed user base
     *    continue to invest in R&D (2003 spend - #3 million) to enhance
          productivity and print quality whilst lowering cost of operation and 
          to improve gross margins

Digital printing is one of the fastest growing sectors of the printing industry
with the Printing Industry Research Association estimating that penetration of 7
per cent for 2002 will rise to approximately 18 per cent by 2010. CAP Ventures,
Inc. estimates that black and white printing will grow at a compound annual
growth rate of 10 per cent from US$9.6 billion to $15.5 billion by 2007.

The management of Nipson believes that there is a major opportunity to expand in
key markets where the company is currently under-represented. For example, the
US, which represents 40 per cent of the global high end printing market,
accounts for only 15 per cent of Nipson's printer base and 25 per cent of its
recurrent revenues. In addition, Asia Pacific is a largely untapped market for
Nipson machines.

Placing statistics

Placing price per Ordinary share                                      70 pence
Number of new Ordinary shares in issue prior to the Placing         30,000,000
Number of new Ordinary shares being issued pursuant to the          14,285,714
Placing
Number of Ordinary Shares in issue on Admission                     44,285,714
Percentage of Enlarged Share Capital being placed                32.3 per cent
Market capitalisation following the Placing at the Placing       #31.0 million
Price
Estimated gross proceeds of the Placing receivable by the        #10.0 million
Company
Estimated net proceeds of the Placing receivable by the          #8.9 million
Company

Following the placing, Koonras Technologies holds 74.1 per cent of the enlarged
share capital.

ENDS

For further information please contact:

Ken Lalo, Executive Director, Nipson               +972 (3) 684 5795

Jeff Keating, Teather & Greenwood
Mark Dickenson, Teather & Greenwood                +44 (0) 20 7426 9000

Simon Bloomfield / Ian Seaton
Bankside Consultants                               +44 (0) 20 7444 4140

Notes to editors

Nipson, based in Dartford, Kent, and with subsidiaries in France, North America,
Germany, the UK and Italy, manufactures printers for the growing black and white
digital printing sector. Its production digital printers operate on Nipson's
unique proprietary magnetography technology which enables the printing of high
quality, short run print jobs, direct from digital files onto a wide variety of
substrates.

Primary users of Nipson's products include:
          
     *    Direct mailers
     *    Outsourcing companies and service bureaux
     *    Commercial printers
     *    Security printers
     *    Printing departments of financial services companies, telecom
          service and utilities providers
     *    Forms printing companies

Magnetography is a non-impact printing technology whereby images on a drum are
generated with magnetic writing heads and fused to the substrate using "cold
flash fusing", a process which heats only the toner and not the substrate. The
writing heads, print drum and toner together constitute the core components of
Nipson's technology for which the company holds all intellectual property
rights. The advantages of this technology include:
          
     *    Reliability

The simple and compact print engine containing few moving parts and with a long
life print drum makes it ideal for heavy duty applications
               
     *    High speed and quality

Nipson systems achieve a unique combination of high speed (up to 125 metres per
minute) and high print quality (at 600 dots per inch or "dpi")

     *    Low operating costs

These result from long life parts, few moving parts, "cold fusing", lower
variable costs and higher uptime

     *    Substrate flexibility

Nipson's technology can print on a wide variety of substrates such as low to
high weight and quality paper grades, plastics, labels and tags.

Nipson has over 1000 installed printers worldwide in a wide-range of blue-chip
organisations including Accor, Cowells Arrow, Credit Agricole, De La Rue, Joseph
Witt GmbH, Lettershop sa, NCR, RR Donnelley, Schlumberger, SK Telecom, Sodexho,
Telekom Malaysia, US Postal Services, Zhongcai Printing Technology Company.

A major strength of Nipson's business model is the recurrent revenue stream from
consumables (mainly toner), spare parts and maintenance services from its
growing installed user base. Approximately 69 per cent of 2003 revenues were
recurrent.

Total revenues for 2003 were #29.8 million on which operating losses were #0.05
million. Following the completion of major restructuring programmes implemented
since 2002, the company expects to realise cost savings of approximately #5
million by 2005.

In May this year, Nipson launched two new products at the DRUPA exhibition in
Dusseldorf. Shipments of these products will commence in the fourth quarter of
the current year.

Varypress 200 is a mainstream product that will gradually replace the Nipson
8000. It operates at speeds of up to 70 metres per minute and produces 500 crisp
600 dpi images per minute at a lower total cost per page. Varypress 400 is a
heavy-duty product that will gradually replace the Varypress T. It runs at up to
125 metres per minute at 600 dpi.

The company intends to pursue a progressive dividend policy whilst maintaining a
level of dividend cover which will provide the funds necessary to finance the
expansion and development of the business.


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

END
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