Punch Graphix nv

Trading update Q1 2010 – strong quarter for recurring sales

Eede, the Netherlands – 14 May 2010 8.00 am – Although Punch Graphix nv (‘Punch Graphix’) has seen a fall in its sales for the first quarter of 2010 compared with the first quarter of 2009, some markets are showing signs of stabilisation and recovery. Equipment sales are slow, but the growth in the sale of consumables is continuing.

Sales trends
The group’s sales in the first quarter fell by 4.9% compared with the same period last year. The main developments in this connection are as follows:

• Digital Printing Solutions sales rose slightly (+0.4%), but Prepress Solutions sales fell significantly (-15.1%).
• In geographical terms, there was a sales shift in the first quarter of 2010 from Europe (-14.6%) to Asia (+15.3%) and America (+30.4%).
• An analysis per activity and/or product shows that sales of service and other activities remained virtually constant at their 2009 level. Equipment sales fell by 26.9% compared with 2009, whereas sales of consumables grew significantly (+24.3%). Equipment sales are under pressure because of customers’ financing problems, due in particular to the global credit crisis. This problem mainly arises in connection with the more expensive items of equipment. The increasing demand for consumables points to the recovery of the printing market.

Strategy and new product developments
In the course of 2009, a strategic plan was devised for Xeikon. This is based on a renewed focus on areas such as the industrial market, where Xeikon is mainly concentrating on label printing, and the document printing market, where it is specialising in high-quality documents. Both markets are characterised by large-scale use of consumables.

From 18 to 25 May, Punch Graphix will attend Ipex 2010, the largest fair for the graphics industry this year. Punch Graphix will launch the Xeikon 3500 there, the most productive toner-based label press, combining unrivalled printing quality with superior printing capacity. The Xeikon 3500 is as fast and offers the same quality as the Xeikon 3300 launched in 2008, but prints on wider substrates: this makes it suitable for a broader range of applications, but also more productive. Punch Graphix will also present an even faster version of the Xeikon 8000 at Ipex 2010. With a print speed of 260 A4 pages per minute, it is the fastest toner-based printing press on the market. The Xeikon 3500 and the new Xeikon 8000 reflect the productivity requirements of the industrial market and the document printing market respectively. Finally, visitors to Ipex will be able to discover two new advanced toner formulas, specially developed for applications in these target markets.

The strong growth in recurring income shows that the strategic focus on the industrial market and the market for document printing is a good choice.

Prospects
In the current economic climate, the group cannot make sufficiently accurate forecasts to announce very concrete targets. The effects of the cost-saving measures which have been taken will be seen in the figures from the second quarter of 2010 onwards. The first results of the refocus plan are already visible. The group expects sales for the second quarter of 2010 to be slightly better than those for the first quarter.

Purchase of treasury shares
The Executive Board has resolved to avail itself of the authority granted it to purchase treasury shares. Under this authority, which was extended at the Extraordinary General Meeting on 13 February 2009, the Executive Board is empowered to purchase treasury shares up to the maximum quantity that may be vested in the company by virtue of statute and the articles of association at the time of acquisition, at a price between their par value and 110% of the stock-market price at the time of acquisition. The company will periodically report on the number of treasury shares purchased and the average acquisition price in its quarterly trading updates. As of the end of April 2010, and since the authority was first issued, the company had purchased a total of 2,412,209 Punch Graphix shares at an average price of 2.50 euros per share. This represents 8.40% of the total number of outstanding shares.

General Meeting of shareholders
The General Meeting of shareholders will take place in the company’s offices at de Brieversstraat 70, 4529 GZ Eede, the Netherlands, at 11 am on Tuesday 18 May 2010.

Financial calendar

Annual General Meeting 2010	18 May 2010
Publication of interim results for 2010	27 August 2010
Trading update third quarter2010	15 November 2010
Publication of results for 2010	28 February 2011
Annual report 2010 released	29 April 2011
Trading update first quarter 2011	13 May 2010

For further information, please contact:
Wim Maes, CEO +31 (0)117 37 50 20
Kees Vlasblom, CFO +31 (0)117 37 50 20

Annex: Detailed change in sales
The full press release including the annex can be downloaded on the right of this page.

About Punch Graphix
Punch Graphix provides innovative, competitive and environmentally friendly imaging and printing solutions for the global graphics industry. Under the Xeikon brand name, Punch Graphix designs, develops and delivers high-end digital colour printing systems, software and consumables for the commercial, document printing and industrial markets. Under the basysPrint brand and as an OEM supplier, Punch Graphix designs, develops and delivers mid to high-end imaging systems for offset prepress commercial and newspaper markets. With a clear-minded focus on R&D, Punch Graphix is solely dedicated to customer satisfaction and aims to deliver cost-effective graphic excellence that goes beyond all expectations. Punch Graphix is listed on Euronext Amsterdam (PGX). Website: www.punchgraphix.com.

Cautionary statement regarding forward-looking statements
This press release contains certain forward-looking statements. Any forward-looking statement applies only on the date of this press release. Such statements are based on current expectations and convictions and, by their nature, are subject to a number of known and unknown risks and uncertainties as a result of which the actual results and performance may differ substantially from expected future results or performance expressed or implied in the forward-looking statements. The information and views contained in this press release may change without prior notice, and Punch Graphix nv has neither the intention nor the obligation to update forward-looking statements in this communication, except insofar as it is obliged to do so by any applicable legislation or by the rules of any stock exchange on which its shares may be traded.