It is also developing a pay-as-you-go pricing model to cut the high up-front cost.

"The concept has been tested for four months," said vice president of marketing Gary Smith. "We want to use Ipex as a launch-pad for a new level of price/performance."

It will also launch the 3700, a full-colour printing system designed to be fitted onto web presses.

Following reports in the Dayton Business Journal, Scitex chief financial officer Yossy Zylberbergm has confirmed that an IPO by Scitex Digital was possible, but that market conditions were not right now or in the immediate future.

The paper also said Scitex Digital hoped that its new products would challenge offset presses and help it to become a billion-dollar firm over the next few years.

President and chief executive Nachum Shamir hoped to float the company to dilute Scitexs holding and generate cash to fund research and development, it added.

Story by Barney Cox