Heidelberg Reports Increased Profits as a Result of a Capitalized Corporate Income Tax Credit from Revised Section 37 Para. 5 of the German Corporate Income Tax Code

In the third quarter of financial year 2006/2007, Heidelberger Druckmaschinen AG (Heidelberg) will post additional earnings from the capitalization of a corporate income tax credit of approx. 70 million Euro.

This corporate income tax credit, which results already from previous years, will be capitalized for the first time as a claim for refund based on revised Section 37 para. 5 of the Corporate Income Tax Code. The amount will be paid out in ten equal annual amounts over the period from 2008 to 2017. The claim for refund becomes valid in full upon expiration of December 31, 2006. Heidelberg will therefore capitalize this claim with effect on the income statement as of December 31, 2006 with a net present value of around 70 million Euro and thus increase profits accordingly in its quarterly financial statements. Since the new version of the Code will merely result in a change in the statement of existing tax credits, it will not have an impact on the level of future dividends.

For further information:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl  
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
E-mail: thomas.fichtl@heidelberg.com