The deal, signed at this year's Drupa, will make Prime one of the first companies in the UK to own the new HP digital press – currently Barking-based Precision Printing is the only UK firm with an installed Indigo 7000.

"The new press will allow us to produce more work at greater speeds and higher quality, but deliver a lower cost per page," director Jon Tolley said.

"Not only can we produce more complex work for our customers, we can also pass the financial benefits down the supply chain."

Prime said the press, which will be installed later this year, would allow it to produce high-quality direct mail material and expand its existing portfolio of VDP products.

The press will be used in combination with a new workflow solution, the HP SmartStream Production Pro Print Server, allowing Prime to integrate it into its centralised workflow network in the future.

Prime specialises in variable data printing and unusual short-run applications, such as personalised books and calendars. The company's existing digital printing department has been running for five years and is based around Indigo 5000 and 3050 digital presses.

Tolley said that thanks to its digital printing department, it had recently worked with personalisation specialists, Penwizard, to produce a series of personalised Noddy books for HarperCollins.

"HarperCollins and Penwizard have been so impressed with the quality of the Noddy books that they have commissioned three major new brands to launch in 2008. When our HP Indigo 7000 digital press is installed, we will move these applications to the press," Tolley said.

Tolley also added that the existing HP press had helped the company win two awards for product innovation in the last year and that he hoped the new press would continue this award-winning trend.