25 February 2008

Corporate News

Results for the Year Ended 31 December 2007

XP Power, one of the world’s leading providers of power supply solutions to the mid-tier of the electronics industry, today announces results for the year ended 31 December 2007.

Financial Highlights

£ Millions	Year ended 31	Year ended 31
	December 2007	December 2006

Income and expenditure
Revenue	66.3	78.7
Gross profit	28.0	29.2
Gross profit %	42.2%	37.1%

Profit before tax	5.0	8.0

Profit before tax, amortisation of intangibles associated with acquisitions £0.3 million (2006: £0.3 million) and restructuring charges associated with moving to Singapore £2.4 million (2006: £1.0 million related to third party terminations)	7.7	9.3

Basic earnings per share	17.9p	27.9p
Diluted earnings per share	17.8p	27.5p
Diluted earnings per share adjusted for the amortisation of intangibles associated with acquisitions and restructuring charges	31.4p	32.8p
Proposed final dividend per share	11.0p	10.0p
Total dividend per share (see note 6)	20.0p	18.0p

Highlights

Gross margin improves by 5.1% to 42.2% (2006: 37.1%) resulting from an increased amount of XP Power intellectual property
Own brand sales now represent 73% of revenues (2006:66%)
Improved competitive position due to move to Asia
Transition of the Company to a manufacturer enables penetration of larger customers
Dividend to be increased by 11% to 20p per share

Larry Tracey, Executive Chairman, commented:

“Margin targets achieved, revenue growth is now the focus.”

Enquiries:

XP Power Limited
Larry Tracey, Executive Chairman 0118 984 5515
James Peters, Deputy Chairman
Duncan Penny, Chief Executive Officer

Weber Shandwick Financial 020 7067 0700
Terry Garrett, Nick Dibden, Hannah Marwood

Notes to editors:

XP provides power supply solutions to the electronics industry.

All electronic equipment needs a power supply. Power supplies convert the incoming AC supply into various levels of DC voltages to drive electronic components and sub-assemblies within the end user’s equipment. XP segments its business into Communications, Defence and Avionics, Industrial and Medical. By servicing these markets, XP provides investors with access to technology and industrial sectors of the worldwide electronics market.

The market is highly fragmented and made up of a large number of Original Equipment Manufacturers who source standard and modified standard power supplies from several hundred power supply companies.

The Investor Presentation covering XP’s results will be available on the XP website at 9.30am on 25 February 2008.

For further information, please visit www.xppower.com

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