declare @hexbin varbinary(max);
declare @vbin varbinary(max);
declare @hexstring1 varchar(8000)
-- convert varbinary to hexstring
select @hexbin = Data1 from Table1;
select @hexstring1 = '0x' + cast('' as xml).value('xs:hexBinary(sql:variable("@hexbin") )', 'varchar(max)');
-- replace '000' to '0' three '0's mean enter character
select @hexstring1 = replace(@hexstring1, '000', '0')
-- convert hexstring to varbinary
select @vbin = cast('' as xml).value('xs:hexBinary( substring(sql:variable("@hexstring1"), sql:column("t.pos")) )', 'varbinary(max)')
from (select case substring(@hexstring1, 1, 2) when '0x' then 3 else 0 end) as t(pos)
-- cast varbinary as varchar
print cast(@vbin as varchar)
