Agreement on Safeguarding the Future of the Heidelberg Group's German Sites to 2012 Is Updated

• Management Board and employee representatives agree on the key points of a deal
• Agreement enables structures to remain competitive in the future
• Investments to continue and jobs to be safeguarded

The Management Board and employee representatives have agreed to continue the agreement to safeguard the future of German sites of Heidelberger Druckmaschinen AG (Heidelberg) until 2012. The negotiations were aimed at updating the measures agreed in 2005 to improve Heidel-berg's competitiveness beyond 2008, while safeguarding jobs at sites throughout Germany. 
 
"We want to use this package solution to continue the cost savings that have been achieved so far," said Bernhard Schreier, Chairman of Heidelberg's Management Board. "These measures will strengthen our competitiveness and increase our flexibility, thus safeguarding jobs."
 
The new agreement contains selected parts of the 2005 agreement and new regulations. The key new components in the package solution relate to safeguarding the future, working hours, the Entgeltrahmen-Tarifvertrag (collective wage agreement) and job protection.

• The package solution, which has been agreed for a period of five years through March 31, 2012, will apply to the German sites of the Heidelberg Group, and will be implemented through a supplementary collective agreement and plant agreement.
• Safeguarding the future: Investments will remain as planned. Training will continue in its current form.
• Working hours and pension component: Working hours will be extended to 37.5 hours per week from October 1, 2007, without any additional remuneration but maintaining in full the existing flexible arrangements. As recompense, additional direct annual pension compo-nents will be put in place by 2012.
• Implementation of the Entgeltrahmen-Tarifvertrag (ERA): A framework has been agreed for the ERA classification structure at Heidelberg, and a catalog with evaluated levels has been defined. The new standardized collective wage agreement (ERA) for both waged and salaried employees is to be introduced on January 1, 2008.
• Safeguarding jobs: The parties to the negotiations do not anticipate any redundancies for operational reasons during the period of the agreement.

For further information:
Heidelberger Druckmaschinen AG
Investor Relations
Andreas Trösch
Tel: +49 (0)6221 92 60 20
Fax: +49 (0)6221 92 51 89
E-mail: andreas.troesch@heidelberg.com