Punch Graphix plc (“Punch Graphix” or the “Group”), the digital and pre-press printing systems group, issues the following trading update prior to entering the close period ahead of its interim results for the six months to 30 June 2006. The interim results are scheduled to be announced on 28 September 2006.

The positive start to the current financial year, reported at the time of the AGM on 24 May 2006, has been maintained and the business continues to perform in line with expectations.

In pre-press solutions, the overall first half performance was comparable to that in the same period in 2005, with the expected reduced margins from the new long-term OEM agreement with Agfa being offset by increased sales of basysPrint.

In digital printing solutions, sales of both equipment and consumables have shown encouraging growth.

The Group has recently invested substantially in the expansion of its sales and service organisations in the US, Brazil, Canada and China, in a new assembly plant in China, and in accelerated research programmes focused on the development of next generation machines. This investment positions the Group well for the future.

Overall, trading conditions and market trends are expected to continue in a positive vein for the reminder of the year. This, together with the benefits to come from the ongoing streamlining and efficiency programmes, reaffirms the Board’s confidence in the outlook for the year and beyond.

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For further information, please contact:
Punch Graphix plc +32 (0)3 443 19 11
Ben Van Assche, Chief Executive Officer
Jan Smits, Chief Financial Officer