Financial Year 2005/2006: Heidelberg Presents Figures for First Six Months.

HEIDELBERG, Germany -- 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 the figures stated provide a basis for comparison.

--Incoming orders for second quarter 14 percent up on previous year

--Sales for second quarter 13 percent up on previous year

--Result of operating activities of Euro 64 million for second quarter represents significant improvement

--Outlook for full financial year 2005/2006 confirmed

--Management Board decides to buyback up to five percent of Company's shares

At Euro 1.53 billion, sales generated by Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD) in the first six months of financial year 2005/2006 (April 1 to September 30, 2005) were 12 percent up on the comparable figure for the previous year (previous year: Euro 1.37 billion). In the second quarter alone, sales amounted to Euro 869 million, an increase of Euro 100 million or 13 percent compared to the figure for the same quarter the previous year (previous year: Euro 769 million). Incoming orders in the first six months amounted to Euro 1.76 billion (last year's figure of Euro 1.91 billion for this period was influenced by drupa in May 2004). Incoming orders for the second quarter were significantly up on the previous year's figure. At Euro 874 million, they exceeded the incoming orders for the same quarter the previous year (previous year: Euro 764 million) by Euro 110 million or 14 percent. The order backlog as at September 30, 2005 was Euro 1.2 billion.

The positive trend for sales and incoming orders continued for Heidelberg in the second quarter of financial year 2005/2006. Compared to the first quarter, sales increased by 32 percent or Euro 209 million. Although incoming orders remained fairly steady at Euro 874 million, this figure once again significantly exceeded expectations.

According to Heidelberg CEO, Bernhard Schreier, "The recovery of the print media industry has continued during the first six months of our financial year. Sales and incoming orders at Heidelberg were up on the previous year's figures in virtually every region and we believe that the same will be true for the second half of the financial year."

The Heidelberg Group recorded an operating result of Euro 71 million in the period under review (continuing operations previous year: Euro 6 million). The second quarter alone brought an operating profit of Euro 64 million (continuing operations previous year: Euro 27 million). This corresponds to an operating return on sales of 7.4 percent. The net profit for the first six months of the year was Euro 33 million (previous year including discontinuing operations: Euro -59 million).

According to Heidelberg CFO, Dr. Herbert Meyer, "The improvement in the operating result for the first six months shows that Heidelberg has made further progress in this respect and is on the right track to further improving its profitability. The lower personnel expenses at the German sites resulting from the agreement to safeguard the Company's future also had an effect for the first time. Nonetheless, exchange rate movements and developments in raw material and energy prices still present a risk which could have a negative effect on results for the financial year as a whole."

As of September 30, 2005, the Heidelberg Group had a workforce of 18,774 worldwide (previous year: 19,082).

Sales and results improve significantly in the divisions, particularly in the second quarter

In the Press Division (offset printing), sales rose by 12 percent to Euro 1.33 billion in the first six months (previous year: Euro 1.19 billion). Incoming orders in the period under review amounted to Euro 1.55 billion (previous year: Euro 1.69 billion). The result of operating activities for the first six months totaled Euro 63 million. The same period of the previous year returned a break-even result. In the second quarter alone, the result of operating activities was Euro 56 million.

In the Postpress Division (finishing), half-yearly sales amounted to Euro 174 million (previous year: Euro 150 million). Incoming orders totaled Euro 178 million (previous year: Euro 179 million). The result of operating activities in the period under review improved in relation to the previous year's figure to Euro -2 million (previous year: Euro -12 million). Postpress achieved a positive result for the first time in the second quarter, making a profit of Euro 2 million.

Sales up in virtually all regions

The comparison of incoming orders with the first six months of the previous year is distorted by the fact that drupa was held in 2004, but in all regions except Eastern Europe the figures for the second quarter improved considerably compared to the same quarter the previous year. A comparison of the sales figures for the six-month period shows increases for all regions, with Eastern Europe the only region to have a slightly negative figure for the period.

Outlook for financial year 2005/2006 confirmed

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 improve on both the result of operating activities for financial year 2004/2005 of Euro 167 million and the net profit of Euro 61 million.

Management Board decides to buyback up to five percent of the Company's shares

The Management Board of Heidelberger Druckmaschinen Aktiengesellschaft today decided to initiate a share buyback program. Between November 9, 2005 and January 19, 2007 at the latest, the Company intends to acquire shares amounting to up to 5 percent of its capital stock (up to 4,295,424 shares). The Management Board is putting into effect the Annual General Meeting's decision of July 20, 2005 to authorize the buyback of shares amounting to up to 10 percent of its capital stock (up to 8,590,848 shares) by January 19, 2007.

The repurchased shares are earmarked for capital retirement and employee share participation programs.

Shares will be repurchased exclusively through the stock exchange. The Annual General Meeting's authorization states that the price per share (excluding incidental acquisition expenses) paid by Heidelberger Druckmaschinen Aktiengesellschaft must not deviate by more than 10 percent in either direction from the share's average closing price on the XETRA or an equivalent successor system on the Frankfurt Stock Exchange during the last five trading days prior to entering into the purchase commitment.

Heidelberger Druckmaschinen Aktiengesellschaft has instructed the financial institution repurchasing the shares to comply with the terms of trade detailed in Article 5 of Commission Regulation (EC) No. 2273/2003 of December 22, 2003. In particular, it may not buyback more than 25 percent of the average trading volume for a given day. The Company will not acquire shares at a price above that of the last independent transaction or (if this is higher) above that of the highest current independent bid price at the trading platform where the buyback is made.

Notification of transactions will be provided in accordance with the EC Regulation, and Heidelberger Druckmaschinen Aktiengesellschaft will provide regular updates on the progress of the share buyback program at www.heidelberg.com.

The complete report for the second quarter of 2005/2006 will be available online at www.heidelberg.com from 7.00 a.m. onwards.

The table with the figures is available on the Press Lounge at www.heidelberg.com.

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.