Growth Continues at Heidelberg: Sales in the First Quarter of Fiscal 01/02 Up 8 Percent / Profits After Tax Climb from 21 to 29 Million Euros

Heidelberg, Germany (PROTEXT) Heidelberger Druckmaschinen AG(Heidelberg) remained firmly on course for continued growth inthe first quarter (April 1 to June 30) of the 2001/2002 fiscalyear. During this period, sales of the Heidelberg Group increasedby about 8% to 1.1 billion euros compared to 997 million euros inthe first quarter of the previous year. As expected, orders received, at 1.3 billion euros, remainedbeneath the high level of the previous year (1.8 billion euros),which had been heavily influenced by drupa, the world's largesttrade show for the graphic arts industry, which takes place everyfour years. Compared to the first quarter of the year beforedrupa, 1999/2000 (1 billion euros), however, it was up 24%. Atdrupa in May 2000, the company took in orders worth 1.5 billioneuros. "Based on the results of the first quarter, we are confidentof our ability to improve both sales and profits further duringthe course of the fiscal year as a whole," explained Heidelberg'sCEO Bernhard Schreier. The operating profit rose in the period under review by nearly22% to 45 million euros. Heidelberg also benefited from theGerman tax reform for the first time. The combined effect was that aftertax profits developed verygratifyingly, showing a significant rise from 21 to 29 millioneuros. "The development of profits at the beginning of the newfiscal year once again underscores Heidelberg's earning ability,even in the currently difficult economic environment," says CFODr. Herbert Meyer. Profit per share increased by 36% from 0.25 to0.34 euro. Development in the Divisions in Line with Expectations Sales in Heidelberg's Digital Division increased by just under5% to 161 million euros. The operating profit dropped from minus24 million euros to minus 39 million euros as expected, due toexpenditures associated with the market launch of the company'sdigital color presses and the expansion of its company's ownsales and distribution network. In September of this year,Heidelberg will begin marketing the new NexPress digital colorpress. Here too, the company is poised to occupy a leadingposition in the world market. The Sheetfed Division was able to continue its success.Particularly in the Central Europe and Asia/Pacific regions,growth was above-average. Sales increased by 17% to about 730million euros; the operating profits soared by 46% to 117 millioneuros. In the Web Systems Division, sales of about 100 million euroswere made. Due to sales, forerunning costs and non-recurringitems the operating profit dropped by 12 million euros to minus36 million euros compared with the previous year. Heidelbergscored one significant success in the newspaper market in theUnited States, where the company sold the first Mainstream 80newspaper web press to "The Roanoke Times" in Virginia in August. The Finishing Division racked up sales of 83 million euros, ofwhich the NAFTA and Asia/Pacific regions accounted for about 50%.The operating profit was around 3 million euros. Positive Development in the Regions In the Central European region, Heidelberg extended its strongposition by pushing up sales by over 14% to 433 million euros. InNAFTA (the United States, Mexico and Canada), sales declinedowing to the sluggish U.S. economy, but only by 5% to 291 millioneuros. The Central and South America region developedexceptionally successfully, with sales climbing from 28 to 51million euros. The Asia/Pacific region was influenced byfavorable conditions in China in particular, registering sales of210 million euros. The other regions also profited fromincreasing market demand. As of June 30, 2001 the Heidelberg Group employedapproximately 26,000 persons. Photographs are available on the Internet atwww.journalist.heidelberg.com. HEIDELBERG GROUP

June 30, 2001 June 30, 2000 Change in %

EUR m.

EUR m. Net sales

1,074

997

7.7 Digital

161

154

4.5 Sheetfed

730

624

17.0 Web Systems

100

118

-15.3 Finishing

83

101

-17.8 Incoming orders 1,311

1,778

-26.3 Digital

172

208

-17.3 Sheetfed

812

1,192

-31.9 Web Systems

240

230

4.3 Finishing

87

148

-41.2 Order backlog 1,907

2,168

-12.0 Digital

119

151

-21.2 Sheetfed

1,259

1,529

-17.7 Web Systems

433

347

24.8 Finishing

96

141

-31.9 Operating profit 45

37

21.6 Digital

-39

-24

-62.5 Sheetfed

117

80

46.2 Web Systems

-36

-24

-49.9 Finishing

3

5

-40.0 Net profit

29

21

38.1 Return on sales in %

2.7

2.1 Sales by regions

June 30, 2001 June 30, 2000 Change Share 00/01

EUR m.

EUR m.

in %

in % Central Europe 433

379

14.2

40.3 Eastern Europe 59

56

5.4

5.5 NAFTA

291

306

-4.9

27.1 Central+South America

51

28

82.1

4.7 Asia/Pacific 210

201

4.5

19.6 Middle East/ Africa

30

27

11.1

2.8 Group

1,074

997

7.7

100.0 Important Note: This press release contains forward-looking statements whichare based on assumptions and estimations by the managment boardof Heidelberger Druckmaschinen Aktiengesellschaft. Even thoughthe management board is of the opinion that those assumptions andestimations are realistic the future development and theprojected results may deviate substantially from the forward-looking statements. Those deviations can be due to severalfactors including but not limited to changes in the macro-economic situation, in the exchange rates, in the interest ratesand in the graphic arts industry. Heidelberger DruckmaschinenAktiengesellschaft gives no warranty and does not assume theliability for any damages in case the future development and theprojected results do not correspond with the forward-lookingstatements. ots Original Text Service: HeidelbergerDruckmaschinen AG Internet: http://www.presseportal.de For moreinformation, please contact: Thomas Fichtl HeidelbergerDruckmaschinen AG Corporate Communication Phone: +49 6221/92-4747Fax: +49 6221/92-5046 E-mail: thomas.fichtl@de.heidelberg.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

APROTEXT