XAAR PLC

Board/Management Information • Jul 26, 2019

Science Park Cambridge CB4 0XR England

Tel: +44 (0)1223 423663

info@xaar.com www.xaar.com

XAAR PLC

This letter is being sent to the shareholders of Xaar plc for information only and no action is required to be taken. If you have sold or otherwise transferred all of your shares in Xaar plc, please forward this document as soon as possible to the purchaser or transferee or to the stockbroker, bank or other agent through whom the sale or transfer was arranged for transmission to the purchaser or transferee.

Dear Shareholder,

Statement regarding Change of Auditor

I am writing to inform you of the decision by the Board of Directors of Xaar plc (the "Company") to appoint Ernst & Young LLP ("EY") as auditor of the Company, for the year ended 31 December 2019. In accordance with the Companies Act 2006, the Company recently conducted a formal tender process for the statutory auditor contract. This change follows the conclusion of that process.

Deloitte LLP ("Deloitte") submitted its letter of resignation to the Board of Directors of the Company on 12 July 2019, along with a "statement of reasons" for resigning, as required by section 519 of the Companies Act 2006. A copy of Deloitte's statement of reasons is included with this letter and is being sent to shareholders for information only as required by section 520(2) of the Companies Act 2006.

Yours faithfully,

Robin Williams Chairman

24 July 2019

12 July 2019

Deloitte LLP 1 Station Square Cambridge CB1 2GA

Phone: +44 (0)1223 460222 Fax: +44 (0)1223 350839 www.deloitte.co.uk

Direct phone: 01223 259454 pschofield@deloitte.co.uk

The Directors Xaar plc - registration number 03320972 316 Science Park Cambridge CB4 0XR

Our ref: PJS/HS/LH

Dear Directors

This letter is formal notice of our resignation as auditors of the above company with effect from the date of receipt of this letter at its registered office.

Yours faithfully

Deloitte LCP

Deloitte LLP

Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square,
London, EC4A 3HQ, United Kingdom.

Deloitte LLP is the United Kingdom affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee
("DTTL"). DTTL and each of its member firms are legally separat

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Deloitte.

Statement of reasons relating to the intended resolution to appoint another firm of auditors as auditors to Xaar plc

The company had to put the audit out to mandatory tender and another firm were selected.

Unless the company applies to the court, this statement of reasons is required to be brought to the attention of members or creditors of the company and must be sent within 14 days to every person entitled under Section 423 of the Companies Act 2006 to be sent copies of the company's accounts. This is a requirement of Section 520(2) of that Act.

Deloitte LLP - Audit registration C009201919

12 July 2019