Baldwin Reports Fiscal 1997 Results.

NORWALK, Conn.--(BUSINESS WIRE)--August 13, 1997--Baldwin Technology Company, Inc. (ASE: BLD) announced today that net income for the three months ended June 30, 1997 was $6,009,000, or $0.35 per share, as compared to net income of $2,871,000, or $0.17 per share, for the quarter ended June 30, 1996. Net income for the current fiscal fourth quarter includes a "gain" of $3,629,000, or $0.21 per share, resulting from a lower than previously estimated loss on the divestiture of the Company's Misomex prepress operations. Net sales for the quarter were $67,193,000 as compared to $76,838,000 for the quarter ended June 30, 1996.

For the fiscal year ended June 30, 1997, the Company incurred a net loss of ($37,997,000), or ($2.20) per share, on sales of $244,146,000. Included in the net loss is a loss of ($42,407,000), or ($2.46) per share, on the sale of Misomex. Net income for the year ended June 30, 1996 was $2,518,000, or $0.14 per share, on sales of $259,301,000. Included in the net income for the year ended June 30, 1996 was a restructuring charge of ($3,000,000), or ($0.17) per share.

Orders for the quarter and year ended June 30, 1997 were $54 million and $223 million, respectively. These order levels represent increases of 16% and 2% over the levels of the prior year. Backlog at June 30, 1997 was $73 million versus $64 million at June 30, 1996. The order and backlog information presented above excludes the orders and backlog of the divested Misomex operations.

Gerald A. Nathe, Chairman and President, commented: "During the fourth quarter we accomplished a number of important objectives, some of which are not reflected in our fourth quarter results. First, we completed the divestiture of Misomex, allowing us to now focus our energies and resources on our core businesses. Second, we reversed the pattern of losses at our German operations and reported a small profit for the quarter. Third, we completed the consolidation of our German operations.

"This consolidation of our two German companies reduces our physical plant capacity by 25%. Since June 30, 1996 we have reduced our employment levels in Germany by 13% with further reductions of an additional 10% already announced to occur by the end of calendar year 1997."

Mr. Nathe continued: "There is more to be done, however. The decline in our fiscal year revenues compared to the prior year was primarily attributable to currency translation effects. We need to generate additional sales volumes to offset the translation impacts of the strong dollar. Our operating expense levels for both the fourth quarter and the fiscal year were too high, but included higher than normal consulting fees associated with our Economic Profit and related incentive compensation initiatives. In addition, we incurred special advertising and promotional expenditures associated with the Print 97 trade show and the expansion of our businesses into the packaging and converting markets."

Mr. Nathe concluded: "I look forward to Fiscal 1998 with optimism. Our order backlog is strong, including record levels in Asia on a local currency basis. The distractions and negative financial performance of our former prepress group are behind us. And, our restructuring into Product Market Groups is already beginning to pay dividends in the area of increased cooperation on technical and marketing matters on a global basis. All of this is expected to contribute to a more favorable earnings outlook for Fiscal 1998."

Baldwin Technology Company, Inc. is the leading international manufacturer of material handling, accessory and control equipment for the printing industry.

http://www.baldwintech.com

CAUTIONARY STATEMENT--This Release may contain statements which constitute "forward-looking" information as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and actual results may differ. See Exhibit 99 to the Company's Form 10-K Report for the year ended June 30, 1996. -0-

                  Condensed Consolidated Income Statement
                                (unaudited)

  INCLUDING LOSS ON DIVESTITURE OF AND RESULTS OF OPERATIONS OF MISOMEX

                    Three Months Ended June 30  Fiscal Year Ended June 30
                       1997           1996         1997           1996
Net Sales           $ 67,193        $76,838     $ 244,146    $ 259,301
Cost of Goods Sold    43,942         50,223       163,791      173,271
Gross Profit          23,251         26,615        80,355       86,030
Operating Expenses    19,203         20,757        71,860       73,821
Restructuring Charge                                             3,000
(Gain) Loss on Misomex
 Divestiture         (3,629)                       42,407
Operating Income       7,677          5,858      (33,912)        9,209
Interest Expense, Net    745            833         3,102        3,480
Other Income           (138)          (293)       (1,807)      (1,490)
Income (Loss) Before
 Taxes                 7,070          5,318      (35,207)        7,219
Provision for Income
 Taxes                 1,061          2,447         2,790        4,701
Net Income (Loss)      6,009          2,871      (37,997)        2,518
Weighted Average
 Shares Outstanding   17,125         17,425        17,228       17,793
Net Income (Loss) Per
 Share                 $0.35          $0.17       ($2.20)        $0.14
----Excluding (Gain)
Loss on Misomex
Divestuture            $0.14          $0.17         $0.26        $0.14

PROFORMA EXCLUDING LOSS ON DIVESTITURE OF AND RESULTS OF OPERATIONS OF
MISOMEX
                  Three Months Ended June 30   Fiscal Year Ended June 30
                        1997           1996         1997           1996
Net Sales             59,947         68,108      215,819        226,069
Cost of Goods Sold    39,189         44,773      144,724        152,876
Gross Profit          20,758         23,335       71,095         73,193
Operating Expenses    16,563         17,441       60,962         60,938
Restructuring Charge                                              3,000
Operating Income       4,195          5,894       10,133          9,255
Interest Expense, Net    701            787        2,963          3,251
Other Income             (68)          (353)      (1,604)        (1,610)
Income Before Taxes    3,562          5,460        8,774          7,614
Provision for Income
 Taxes                 1,220          2,477        3,082          4,755
Net Income             2,342          2,983        5,692          2,859
Weighted Average
 Shares Outstanding   17,125         17,425       17,228         17,793
Net Income Per Share   $0.14          $0.17        $0.33          $0.16
-0-

                 Condensed Consolidated Balance Sheet
                       (In thousands, unaudited)

                                          June 30,       June 30,
                                              1997           1996

Assets
   Cash and Equivalents                    $13,453        $ 9,794
   Receivables                              53,228         63,721
   Inventory                                27,833         42,049
   Prepaid Expenses and Other               13,512          8,724
Total Current Assets                       108,026        124,288

Property, Plant & Equipment, net             7,545         13,314
Intangibles, net                            36,731         69,795
Other Assets                                 9,821          9,943
Total Assets                              $162,123       $217,340

Current Liabilities
   Loans Payable                            $8,312         $9,704
   Current Portion of Long-Term debt         6,425            492
   Other Current Liabilities                63,593         68,042
Total Current Liabilities                   78,330         78,238
Long-Term Debt                              20,256         33,576
Other Long-Term Liabilities                  5,275          8,470

Total Liabilities                          103,861        120,284
Shareholders' Equity                        58,262         97,056
Total Liabilities and Shareholders'
 Equity                                   $162,123      $ 217,340
-0-

CONTACT: Helen P. Oster 

203-866-3497