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RR Donnelley Upgrades and Adds Second Line to Digitial Book Production with Nipson Digital Printing

RR DONNELLEY UPGRADES AND ADDS SECOND LINE TO DIGITAL
BOOK PRODUCTION WITH NIPSON DIGITAL PRINTING
New Investment Results in Increased Productivity and Higher Print Resolution

Elk Grove Village, IL (May 10, 2006) – Nipson Digital Printing Systems PLC (AIM: NDP), the developer and manufacturer of high speed digital black and white production printing equipment, announces an upgrade as well as installation of a new second line for RR Donnelley’s digital book production solution located at its facility in Harrisonburg, Virginia.

“The book-on-demand market is growing worldwide as publishers target markets with smaller volume print runs that still demand high quality and competitive pricing,” says Alain Flament, Nipson’s chief marketing officer. “Nipson has answered the demands of this market by developing technology with high productivity, excellent print quality, and the lowest total cost of operation.”

Working with Nipson,RR Donnelley recently upgraded the digital book production line that it has been using since 2003 for additional productivity and higher print resolution. In addition RR Donnelley, has invested in a second line: the SigmaLine from Muller Martini using Nipson as its core digital printing technology.

Nipson was able to offer the largest commercial printer in North America enhanced quality, higher speeds, and lower cost-per-page by upgrading its existing VaryPress print engines that are an integral part of RR Donnelley’s Inventory Management SolutionsSM program. Inventory Management Solutions demonstrates how digital book manufacturing is bringing substantial changes to the publishing world in terms of greater flexibility and better inventory management options.

Using digital print technology integrated directly with book finishing equipment, RR Donnelley’s solution makes it possible to effectively and economically manufacture books in quantities between 500 and 2,000 copies per print run – ideal for back list titles, as well as advance reader copies.

RR Donnelley’s solution – through shorter, more frequent runs – can reduce book inventories by about 50%. It also allows for the cost-effective production of advanced copies of titles not yet mass produced. Publishers can then test the market with the advanced copies, and when a book’s sales increase, RR Donnelley can easily move the titles to an offset platform to economically produce much longer runs. This flexibility allows the publisher to produce the right number of books at the right time, depending on how the market is reacting, keeping inventory levels appropriate to the needs of each particular title.

“As a result of the positive experience we have had with our digital book production initiative, we feel thatNipson and Muller Martiniare the ideal partners to assist us in successfully enhancing our capabilities,” said John Pecaric, Senior Vice President, Manufacturing, RR Donnelley. “Together, Muller Martiniand Nipsontechnologies and expertise provide us with a single-source OnDemand solution that helps us to better serve our customers.”

###

About Nipson

Based in Dartford, Kent, with R&D and manufacturing headquarters in Belfort, France and with subsidiaries in France, North America, Germany, the UK and Italy, Nipson provides some of the most cost-effective, flexible digital black and white printing equipment in the industry today. Companies in publishing, print-on-demand, direct mail, transactional, financial, and security printing all benefit from Nipson’s combination of production throughput, reliability, and flexibility.

Traditional hurdles in digital print such as linked offset to digital configurations, inline tipped on cards, printing on plastics, papers, and foils, as well as books-on-demand and newspapers-on-demand are now commercial, profitable, and real-world testimonials to Nipson’s leadership in heavy-dutydigital printing.

In addition to relying on a strong direct sales force in selected areas, Nipson also markets its products and services through a worldwide network of qualified value added distributors, covering more than 50 countries.

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