Financial Year 2005/2006: Heidelberg Presents Nine-Month Figures

February 3, 2006

HEIDELBERG, Germany–(BUSINESS WIRE)–Heidelberger

Druckmaschinen AG (FWB:HDD):

The following information relates to the continuing operations of

the Heidelberg Group. These include the Press, Postpress and Financial

Services divisions. The Digital Division was sold and deconsolidated

on May 1, 2004, the Web Systems Division on August 6, 2004. All

figures for the previous year mentioned in this press information have

been adjusted to ensure that the figures stated provide a basis for

comparison.

— Incoming orders for third quarter 17 percent up on previous

year

— Sales nine percent up on previous year’s figure after nine

months

— Operating result almost double at 143 million Euro

— Outlook for full financial year 2005/2006 unchanged

The positive trend for sales and incoming orders continued at

Heidelberger Druckmaschinen AG (Heidelberg) (FWB:HDD) in the third

quarter of financial year 2005/2006. Sales by the Heidelberg Group

amounted to 2.44 billion Euro in the first nine months (April 1, 2005

to December 31, 2005), nine percent up on the previous year’s figure

for the same period (previous year: 2.23 billion Euro). At 908 million

Euro, sales in the third quarter alone were roughly six percent up on

the corresponding quarter of the previous year (previous year: 860

million Euro). Incoming orders in the period under review amounted to

2.73 billion Euro, the same high level as the previous year (incoming

orders for previous year including drupa: 2.73 billion Euro). Incoming

orders in the third quarter were significantly up on the previous

year. At 965 million Euro, they exceeded incoming orders for the same

quarter the previous year by approximately 140 million Euro or around

17 percent (previous year: 823 million Euro). The order backlog as at

December 31, 2005 was 1.32 billion Euro.

“The favorable business development in the print media industry

has stabilized,” said Heidelberg CEO Bernhard Schreier. “Although the

economic recovery hasn’t extended to all regions, Heidelberg’s overall

sales and results were significantly up on the previous year’s

figures. We are very confident of achieving the target set in our

annual forecast.”

In the period under review, the Heidelberg Group nearly doubled

the previous year’s operating result to 143 million Euro (continuing

operations previous year: 75 million Euro). The third quarter alone

brought an operating profit of 72 million Euro (continuing operations

previous year: 69 million Euro). This corresponds to an operating

return on sales of 7.9 percent for the third quarter and around 5.9

percent for the whole of the period under review. The net profit after

nine months was 67 million Euro (previous year, including

discontinuing operations: -18 million Euro).

“After several good quarters in a row, Heidelberg’s figures

demonstrate that we have once again significantly improved our

profitability,” stated Heidelberg CFO Dr. Herbert Meyer. “However, we

still need to keep an eye on the Heidelberg Group’s cost structure.

Risks such as exchange rate movements and raw material and energy

prices are still very much a factor.”

As at December 31, 2005, the Heidelberg Group had a workforce of

around 18,700 worldwide (previous year: approximately 18,800).

Nine-month sales and results show significant improvement in

divisions

In the Press Division (offset printing), sales rose by roughly 10

percent to 2.13 billion Euro in the first nine months (previous year:

1.94 billion Euro). Incoming orders in the period under review

amounted to 2.4 billion Euro, the same high level as the previous

year. At 120 million Euro, the operating result for the nine months

virtually doubled (previous year: 61 million Euro).

In the Postpress Division (finishing), nine-month sales amounted

to 271 million Euro, 11 percent up on the equivalent figure 12 months

ago (previous year: 244 million Euro). Incoming orders totaled 294

million Euro (previous year: 277 million Euro). The operating result

in the period under review improved to 2 million Euro (previous year:

-10 million Euro), giving the Postpress Division its first overall

positive result.

Sales up in virtually all regions

Compared to the same quarter one year previously, figures for the

third quarter remained stable or improved in all regions except North

America. A comparison of the sales figures for the nine-month period

shows increases for all regions except Eastern Europe, the only region

to have a slightly lower figure.

Share buyback

On November 8, 2005, the Management Board of Heidelberger

Druckmaschinen AG decided on a share buyback program covering up to

five percent of its capital stock. As at December 31, 2005, we had

repurchased 970,000 shares, and an additional 53,217 shares which are

being used for an employee share purchase program. This means that, in

total, 1.2 percent of the shares outstanding have been repurchased.

Outlook for financial year 2005/2006 unchanged

The Company expects to see moderate growth in sales for the

current financial year 2005/2006 on a comparable basis. During the

current financial year, Heidelberg is planning to surpass both the

result of operating activities for financial year 2004/2005 of 167

million Euro and the after-tax result of 61 million Euro.

The tables showing the figures can be downloaded from the Press

Lounge at www.heidelberg.com.

The complete report for the third quarter of 2005/2006 will be

available online at www.heidelberg.com from 7.00 a.m. onwards.

The scheduled publication date for the preliminary annual accounts

for financial year 2005/2006 is May 3, 2006.

Important note:

This Press Information contains statements about future

development that are based on assumptions and estimates by the

management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if

the management is of the opinion that these assumptions and estimates

are accurate, future actual developments and future actual results may

differ significantly from these assumptions and estimates due to a

variety of factors. These factors can include changes to the overall

economic climate, changes to exchange rates and interest rates and

changes in the graphic arts industry. Heidelberger Druckmaschinen

Aktiengesellschaft provides no guarantee that future developments and

the results actually achieved in the future will agree with the

assumptions and estimates set out in this press release and assumes no

liability for such.