August 09, 2005 --- Xaar plc is pleased to announce a Joint Development Agreement with Molecular Imprints Inc. ("MII") of Austin, TX, USA. MII, a spinout from the University of Texas, has developed a unique combination of lithography and 3-dimensional printing to pattern nano-scale devices and structures incorporating Xaar's inkjet technology.

The MII technique is based on a Step and Flash Imprint Lithography (S-FIL™) process, and MII holds over 100 patents covering all aspects of the technology and its implementation. MII has developed a range of equipment using the S-FIL process in conjunction with Xaar's inkjet printheads and electronics from Xaar subsidiary, Vivid Print Innovations Inc. This equipment is now being sold to integrated circuit makers, chip makers and device makers in a wide range of markets including semi-conductor component devices, photonic and optical structures, nano fabrication, data storage and advanced packaging.

MII sells its equipment direct to end users or via distributors which include Carl Zeiss SMT, KLA Tencor Corp. and Hakuto.

Commenting on the agreement, Nigel Berry, head of business development for Xaar, said; "I am delighted to announce this tie up with MII, a leading innovator in the use of imprint lithography to radically restructure future production processes in the semiconductor and device market. Not only did the team at MII develop their unique technology, but they went on to raise significant funding in order to commercialise it, and have now brought an impressive range of equipment to market. We are pleased they consider Xaar and its technology to be an ideal partner for them and we look forward to working with them to incorporate the next generation of our technology into their development programme." (www.xaar.co.uk).

Commenting from MII, S.V. Sreenivasan, CT0, said: "We are pleased to announce this agreement with Xaar and Vivid. These two companies are the leaders in fluid dispense technology and will continue to provide the pioneering work required for our nanolithography applications. We look forward to a long and productive relationship with them." (www.molecularimprints.com ).

About Xaar:

Xaar plc is a market-leading ink jet technology company. It targets the world's office, commercial and industrial printing markets. The office printing market is approached through Xaar's licensees; the industrial printing market is targeted by XaarJet, the manufacturing arm of Xaar; and a combination of partners and key players work with Xaar to serve the commercial printing market. Vivid Print Innovations, the applications division of Xaar, provides Xaar's in-house specialist integration service.

For more information visit www.xaar.co.uk

About Molecular Imprints:

Molecular Imprints, Inc. (MII) is a global developer and manufacturer of nano-lithography systems for high resolution and for 3-dimensional pattern replication. The company has commercialized the unique Step and Flash Imprint Lithography technology (S-FIL), which is a simple step and repeat, room temperature, low pressure, nano-imprint process that has demonstrated sub-20 nanometer resolution. Molecular Imprints provides enabling lithography systems and technology for manufacturing applications in the areas of: nano-devices, micro structures, advanced packaging, bio-devices, optical components and semiconducting devices.

For more information visit www.molecularimprints.com