Dutton Associates Announces Investment Opinion: Baldwin Technology Buy Rating and Increased Price Target In Update Coverage by Dutton Associates.

EL DORADO HILLS, Calif. -- Dutton Associates continues its coverage of Baldwin Technology Company (AMEX:BLD), maintaining its Buy rating and raising its price target to $6.15. The report by Dutton senior analyst Wayne M. Lottinville, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

In late November, Baldwin acquired privately held Oxy-Dry Corporation, the world's leading brush company for on-press cleaning applications, for $18 million in cash, or 47% of Oxy's reported $38 million in annual sales. Oxy serves the sheetfed, commercial web, packaging, and newspaper markets. Baldwin reported fiscal 2Q07 net sales of $48.2 million, 9.9% above the $43.8 million reported for the second quarter last year. However, the increase was primarily attributed to Oxy-Dry sales and to favorable currency translations. Adjusting for this, Baldwin's base-business sales were $41.9 million, 4.5% less than a year earlier. Management attributed lower base-business sales to two factors we discuss in the report. 2Q07 results when "nonrecurring" expenses are eliminated suggest that Baldwin fared rather well from an operational standpoint and were about what we might have expected from the combined entities based on historical results. A year from now we project that Baldwin will have reported calendar 2007 earnings of $0.49 per diluted share on its way to earnings of $0.56 per diluted share in FY08, the first full fiscal year after restructuring. Applying a 14 multiple to the trailing $0.49 per diluted share in earnings that we project a year from now generates a price target of $6.85, 37% above Baldwin's recent $5.00 share price. This potential appreciation merits a Buy rating on the Company's stock.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $52,500 from the Company for 6 Research Reports with coverage commencing on 4/19/2006, and does not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.