Business Update

    RNS Number : 8878G
  Nipson Digital Printing Systems PLC
  28 October 2008
   
    For Immediate Release                                                                                                         28 October
2008

    NIPSON DIGITAL PRINTING SYSTEMS PLC ("Nipson" or "the Company")

    RESTRUCTURING OF FRENCH SUBSIDIARY

    Following the announcement on 10 October 2008, concerning the Trading Update and financial difficulties experienced by Nipson SAS (the
French Subsidiary) and the later announcement of the 14 October 2008 relating to the proposed financial restructuring, board changes and
change of control, the new Board has evaluated and assessed the operational and financial situation of the group.  As a result of this
assessment the French Subsidiary is to be restructured.

    Nipson SAS, as the Group's main operating subsidiary, has continued to experience difficulties in meeting its obligations in respect of
on-time payments which has been aggravated by continuing losses in the business. The difficult financial situation of the French Subsidiary
has led to the withdrawal of credit insurance by a number of providers of insurance and rating services, which, aggravated by tighter credit
restrictions, has led to even less flexibility in the day to day operating of its working capital. The economic crisis has delayed customer
payments especially from countries where capital is not so free flowing and has also reduced the possibility of obtaining fresh funding from
other sources.
    The French Subsidiary must restructure the level of its operations, including subcontracting out the non-core part of its production and
reducing the level of fixed costs and operating expenses.
    The Board has therefore unanimously decided to confer to the President of the Subsidiary, Mr. Ghislain Segard, all powers to carry
through the necessary changes including filing for the French "Redressement Judiciaire" which was filed today. This will mean the nomination
of an administrator by the French Commercial Courts who will supervise the President in the process of the restructuring. The restructuring
plan will include a sizeable reduction in the number of employees, although the exact number has yet to be finalized. The administrator will
also supervise the payment of creditors, thus protecting the company during the period of restructuring. The government scheme will allow
the company an additional delay in paying redundancy payments, salaries and social charges.

    There is unlikely to be an effect on the PLC Company itself and the Group will continue to operate.  The Group's other subsidiaries in
the USA, UK, Germany and Italy and the distribution network are expected to continue to trade normally.

    Further to Marc Maes's appointment as a member of the Board on the 14 October 2008, he was elected as Chairman of the Nipson DPS PLC
Board as from the 23 October 2008.


    Contacts :
    Nipson Digital Printing Systems PLC
    Robert Cahill, Group Finance Director                         [phone]
    Beaumont Cornish Limited
    Roland Cornish/Rosalind Hill Abrahams                       [phone]

    Glossary: Redressement Judiciare : the English equivalent might be considered to be "receivership under protective administration"

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