Baldwin Reports Second Quarter Profit Improvement.

NORWALK, Conn.--(BUSINESS WIRE)--February 3, 1998--Baldwin Technology Company, Inc. (ASE:BLD) reported today that net income for its second quarter ended December 31, 1997 was $2,103,000, or $0.12 per share versus a net loss of ($45,307,000), or ($2.62) per share for the quarter ended December 31, 1996. The loss for the quarter ended December 31, 1996 included a loss of ($46,036,000), or ($2.66) per share related to the disposition of the Company's former Pre-press operations. Net sales for the current period were $55,618,000 versus $61,094,000 for the prior year's quarter, which included sales of $8,206,000 from the former Pre-press operations. Currency translation impacts resulting from the strong U.S. dollar resulted in a decrease in net sales and net income of $3,679,000 and $114,000, respectively, for the quarter.

Orders for the quarter were $66 million, an increase of 10% over the prior year's quarter. Backlog at December 31, 1997 was a record $95 million, an increase of 33% over the level of a year ago and a 13% increase over the September 30, 1997 amount (all prior year order and backlog amounts used for comparison purposes have been adjusted to reflect the disposal of the former Pre-press operations).

Gerald A. Nathe, Chairman and President, commented on the results: "We continue to make good progress in improving our profitability. Our second quarter results were highlighted by strong sales and profitability in our Graphic Products and Controls Group, particularly in Asia where we achieved high double-digit operating margins. We also continued on our path to recovery in Germany where we have reversed the negative profit result of a year-ago. Sales and profits for the quarter were lower than expected in our Material Handling Group, but recent order rates for that Group point toward an improvement during the second half of this fiscal year. As our backlog grows, however, the time span between the booking of orders and the actual fulfillment and invoicing of the orders is lengthening. Therefore, a portion of our backlog will not be shipped and invoiced during the current year."

Mr. Nathe concluded: "As in our first quarter, orders in the second quarter were strong, once again fueled by activity in the U.S. for the roll handling equipment of our Material Handling Group. During the quarter we experienced some slowing in order rates in Asia compared to the relatively high order rates of recent quarters. Nonetheless, our orders in Asia during the quarter increased from the year ago levels, notwithstanding the negative currency translation impacts of the weaker Japanese Yen. We continue to closely monitor the situation in Asia."

Baldwin Technology Company, Inc. is the leading international manufacturer of material handling, accessory and control equipment for the printing industry. -0-

                   Baldwin Technology Company, Inc.
              Condensed Consolidated Statement of Income
                 (In thousands, except per share data)
                              (Unaudited)

                                  Quarter ended December 31,

                                    1997             1996

Net Sales                          $55,618         $ 61,094
Cost of Goods Sold                  36,761           41,859
Gross Profit                        18,857           19,235
Operating Expenses                  15,199           17,439
Provision for Misomex
  Divestiture                         --             46,036
Operating Income (Loss)              3,658          (44,240)
Interest Expense                       769              898
Interest Income                       (107)             (96)
Other income                          (439)            (357)
Pretax Income (Loss)                 3,435          (44,685)
Net Income (Loss)                  $ 2,103        $ (45,307)

Average Shares Outstanding -
  Basic                             17,135           17,298
Average Shares Outstanding -
  Diluted                           17,528           17,298

Basic Net Income (Loss)
  Per Share                         $ 0.12          $ (2.62)
Diluted Net Income (Loss)
  Per Share                         $ 0.12          $ (2.62)


-0-

                               Six Months ended December 31,

                                    1997             1996

Net Sales                        $ 103,665        $ 118,635
Cost of Goods Sold                  68,781           80,818
Gross Profit                        34,884           37,817
Operating Expenses                  29,384           34,764
Provision for Misomex
  Divestiture                          --            46,036
Operating Income (Loss)              5,500          (42,983)
Interest Expense                     1,504            1,808
Interest Income                       (314)            (208)
Other Income                        (1,197)            (927)
Pretax Income (Loss)                 5,507          (43,656)
Net Income (Loss)                    3,304          (44,751)

Average Shares Outstanding -
  Basic                             17,129           17,329
Average Shares Outstanding -
  Diluted                           17,344           17,329

Basic Net Income (Loss)
  Per Share                         $ 0.19          $ (2.58)
Diluted Net Income (Loss)
  Per Share                         $ 0.19          $ (2.58)

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                 Condensed Consolidated Balance Sheet
                       (In thousands, unaudited)


                                              December 31,  June 30,
                                                1997           1997

 Assets
   Cash and Equivalents                        $ 8,494       $13,453
   Trade Receivables                            55,325        53,228
   Inventory                                    34,644        27,833
   Prepaid Expenses and Other                    7,752        13,512
Total Current Assets                           106,215       108,026

Property, Plant & Equipment, net                 7,468         7,545
Intangibles, net                                35,202        36,731
Other Assets                                     9,240         9,821
Total Assets                                  $158,125      $162,123

Current Liabilities
   Loans Payable                                $5,348        $8,312
   Current Portion of Long-Term debt             6,352         6,425
   Other Current Liabilities                    61,393        63,593
Total Current Liabilities                       73,093        78,330
Long-Term Debt                                  21,296        20,256
Other Long-Term Liabilities                      4,856         5,275

Total Liabilities                               99,245       103,861
Shareholders' Equity                            58,880        58,262
Total Liabilities and
  Shareholders' Equity                       $ 158,125     $ 162,123

CAUTIONARY STATEMENT--This Release contains statements regarding expected future order and sales rates, operating margins and profitability which may 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, 1997.

CONTACT: Baldwin Technology Co. Inc., Norwalk

Helen P. Oster 

203-866-3497