Baldwin Reports Significantly Improved Fiscal 1998 Results.

NORWALK, Conn.--(BUSINESS WIRE)--August 12, 1998--Baldwin Technology Company, Inc. (ASE: BLD) announced today that net income for the fiscal year ended June 30, 1998 was $9,016,000, or $0.53 per share (Basic) compared to a net loss of ($37,997,000), or ($2.21) per share (Basic), for the prior fiscal year. Included in the net loss for the prior year was a loss of ($42,407,000), or ($2.46) per share (Basic), resulting from the disposition of the Company's former Pre-press operations. Net sales for the current year were $231,408,000 as compared to $244,146,000 for the prior year. Net sales for the prior year included sales of $28,327,000 from the Company's former Pre-press operations. Currency translation impacts of a stronger U.S. dollar resulted in decreases in net sales and net income for the current year of $12,588,000 and $415,000, respectively, when compared to the prior year.

Net income for the three months ended June 30, 1998 was $3,487,000, or $0.20 per share (Basic), as compared to $2,380,000, or $0.14 per share (Basic), for the quarter ended June 30, 1997 after excluding from the prior years period a gain of $3,629,000, or $0.21 per share (Basic) related to the disposition of the Company's former Pre-press operations. Net sales for the current quarter were $67,544,000 as compared to $67,193,000 for the quarter ended June 30, 1997. Net sales for the prior years quarter included sales of $7,246,000 from the Company's former Pre-press operations. Currency translation impacts due to the stronger U.S. dollar resulted in decreases in net sales and net income for the current quarter of $2,702,000 and $150,000, respectively, when compared to the prior year's quarter.

Orders for the year and quarter ended June 30, 1998 were $246 million and $53 million, respectively, as compared to $223 million and $54 million for the prior year periods. Currency translation impacts resulted in decreases in orders for the current year and quarter of $12 million and $4 million, respectively, when compared to the prior year. Backlog at June 30, 1998 was $87 million versus $73 million at June 30, 1997. Currency translation impacts resulted in a decrease in backlog of $5 million. The order and backlog information presented above for the prior year excludes the orders and backlog of the Company's former Pre-press operations.

Gerald A. Nathe, Chairman and President, commented: "Fiscal 1998 has been a year of achievement for Baldwin. We closed out the year with the third highest annual earnings per share in Company history while recording all-time records for sales, orders and year-end backlog, after excluding the former Pre-press operations from prior years. All of this was achieved in the face of negative foreign currency translation effects resulting from the strong U.S. dollar. On a local currency basis, our increases in sales and orders were 13% and 16%, respectively, as compared to the reported U.S. dollar increases of 7% and 10%."

In commenting specifically about business conditions in Asia, Mr. Nathe noted: "Orders in Asia for the fourth quarter of fiscal 1998 were approximately $9 million lower than in the fourth quarter of the prior year. Nearly one-half of this decrease was solely attributable to currency translation rates, with the remainder of the decrease resulting from the comparison to unusually high order rates in the fourth quarter of the previous fiscal year. For the full year, orders in our Asian group were flat on a local currency basis and decreased by approximately 15% on a U.S. dollar basis."

Mr. Nathe continued: "While we are pleased with the achievements of this past year, we are continuing our initiatives to reduce the cost of manufacturing our products, as I am not satisfied with our gross profit margins."

Mr. Nathe further commented: "The economic and industry indicators are generally positive. We have a solid order backlog, a strong balance sheet, a commitment to reduce costs, and a business that generates substantial cash flows. We enter fiscal 1999 with a positive outlook."

Finally, Mr. Nathe stated: "Baldwin has approximately $2.4 million available under its Stock Repurchase Program for utilization to repurchase shares of its Class A Common Stock. We believe that the current market price of the Company's stock makes it an attractive investment."

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, 1997. -0-

                Condensed Consolidated Statement of Income
              (Unaudited, in thousands, except per share data)

                                         Three months ended June 30,
                                            1998          1997
Net Sales                                 $67,544       $67,193
Cost of Goods Sold                         45,177        43,942
Gross Profit                               22,367        23,251
Operating Expenses                         17,067        19,203
Provision for loss on disposition
 of Pre-press operations                        0       (3,629)
Operating Income                            5,300         7,677
Interest Expense                              610           854
Interest Income                             (120)         (109)
Other Income                                (668)          (21)
Minority Interest                               0         (117)
Pretax Income                               5,478         7,070
Net Income                                 $3,487        $6,009

Average Shares Outstanding - Basic         17,165        17,125
Average Shares Outstanding - Diluted       17,699        17,125

Basic Net Income Per Share                  $0.20         $0.35
Diluted Net Income Per Share                $0.20         $0.35


                                            Year Ended June 30,
                                          1998              1997

Net Sales                                231,408        $ 244,146
Cost of Goods Sold                       155,151          163,791
Gross Profit                              76,257           80,355
Operating Expenses                        61,871           71,860
Provision for loss on disposition
 of Pre-press operations                       0           42,407
Operating Income (Loss)                   14,386          (33,912)
Interest Expense                           2,792            3,516
Interest Income                             (521)            (414)
Other Income                              (2,330)          (1,617)
Minority Interest                            (97)            (190)
Pretax Income (Loss)                      14,542          (35,207)
Net Income (Loss)                        $ 9,016         $(37,997)

Average Shares Outstanding - Basic        17,145           17,228
Average Shares Outstanding - Diluted      17,480           17,228

Basic Net Income (Loss) Per Share          $0.53          $(2.21)
Diluted Net Income (Loss) Per Share        $0.52          $(2.21)


                 Condensed Consolidated Balance Sheet
                       (Unaudited, in thousands)

                                                June 30,       June 30,
                                                  1998           1997

 Assets
   Cash and Equivalents                       $ 22,026        $13,453
   Receivables                                  53,162         53,228
   Inventory                                    35,166         27,833
   Prepaid Expenses and Other                    8,086         13,512
Total Current Assets                           118,440        108,026
Property, Plant & Equipment, net                 6,998          7,545
Intangibles, net                                34,329         36,731
Other Assets                                     9,761          9,821
Total Assets                                 $ 169,528       $162,123

Current Liabilities
   Loans Payable                               $ 4,481         $8,312
   Current Portion of Long-Term debt             6,330          6,425
   Other Current Liabilities                    73,564         63,593
Total Current Liabilities                       84,375         78,330
Long-Term Debt                                  17,072         20,256
Other Long-Term Liabilities                      4,624          5,275

Total Liabilities                              106,071        103,861
Shareholders' Equity                            63,457         58,262
Total Liabilities and Shareholders' Equity   $ 169,528      $ 162,123


    CONTACT: Helen P. Oster
              203-866-3497