Growth Continues at Heidelberg: Sales in the First Quarter of Fiscal 2001/2002 up Eight Percent

• Sales in the first quarter of fiscal year 2001/2002 up eight percent
• Profits after Tax climb from 21 to 29 million Euro

Heidelberger Druckmaschinen AG (Heidelberg) remained firmly on course for continued growth in the first quarter (April 1 to June 30) of the 2001/2002 fiscal year. During this period, sales of the Heidelberg Group increased by about eight percent to 1.1 billion Euro compared to 997 million Euro in the first quarter of the previous year. As expected, orders received, at 1.3 billion Euro, remained beneath the high level of the previous year (1.8 billion Euro), which had been heavily influenced by drupa, the world's largest trade show for the graphic arts industry, which takes place every four years. Compared to the first quarter of the year before drupa, 1999/2000 (one billion Euro), however, it was up 24 percent. At drupa in May 2000, the company took in orders worth 1.5 billion Euro.

"Based on the results of the first quarter, we are confident of our ability to improve both sales and profits further during the course of the fiscal year as a whole," explained Heidelberg's CEO Bernhard Schreier.

The operating profit rose in the period under review by nearly 22 percent to 45 million Euro. Heidelberg also benefited from the German tax reform for the first time.

The combined effect was that aftertax profits developed very gratifyingly, showing a significant rise from 21 to 29 million Euro. "The development of profits at the beginning of the new fiscal year once again underscores Heidelberg's earning ability, even in the currently difficult economic environment," says CFO Dr. Herbert Meyer. Profit per share increased by 36 percent from 0.25 to 0.34 Euro.

Development in the divisions in line with expectations
Sales in Heidelberg's Digital Division increased by just under five percent to 161 million Euro. The operating profit dropped from -24 million Euro to -39 million Euro as expected, due to expenditures associated with the market launch of the company's digital color presses and the expansion of its company's own sales and distribution network. In September of this year, Heidelberg will begin marketing the new NexPress digital color press. Here too, the company is poised to occupy a leading position 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 percent to about 730 million Euro; the operating profits soared by 46 percent to 117 million Euro.

In the Web Systems Division, sales of about one hundred million Euro were made. Due to sales, forerunning costs and non-recurring items the operating profit dropped by 12 million Euro to -36 million Euro compared with the previous year. Heidelberg scored one significant success in the newspaper market in the United States, where the company sold the first Mainstream 80 newspaper web press to "The Roanoke Times" in Virginia in August.

The Finishing Division racked up sales of 83 million Euro, of which the NAFTA and Asia/Pacific regions accounted for about 50 percent. The operating profit was around three million Euro.

Positive development in the regions
In the Central European region, Heidelberg extended its strong position by pushing up sales by over 14 percnet to 433 million Euro.

In NAFTA (the United States, Mexico and Canada), sales declined owing to the sluggish U.S. economy, but only by five percent to 291 million Euro. The Central and South America region developed exceptionally successfully, with sales climbing from 28 to 51 million Euro. The Asia/Pacific region was influenced by favorable conditions in China in particular, registering sales of 210 million Euro. The other regions also profited from increasing market demand.

As of June 30, 2001 the Heidelberg Group employed approximately 26,000 persons.

For further information:
Heidelberger Druckmaschinen AG
Investor Relations
Dirk Kaliebe
Tel.: +49 (0)6221 92 60 20
Fax: +49 (0)6221 92 60 61
E-mail: dirk.kaliebe@heidelberg.com