The absorption spectra of Xe(N) clusters (N = 50-500) exhibit extra ab
sorption bands not seen in condensed Xe gas. They show up if the clust
er radius is comparable to the radius of the electronic excitation. Fr
om the sharpness of the bands and from the energy-level positions it i
s concluded that these excitations have a character which combines fea
tures seen in molecular Rydberg states and excitons of the solid. This
interpretation is supported by simple model calculations. For small c
lusters (N less-than-or-equal-to 150) the number of extra absorption b
ands reflects the shell structure of the clusters.