Xeikon and Agfa Complete Transfer Agreement Integrating Agfa's Digital Printing Systems Business Into Xeikon.

Business Editors

MORTSEL, Belgium--(BUSINESS WIRE)--May 16, 2000

Expands Xeikon's reach and core competencies and

redefines Agfa's commitment to the digital printing market

Xeikon N.V. (Nasdaq: XEIK), the world's leading supplier of digital color printing systems for professional applications, and Agfa (Brussels, Frankfurt: AGF), a worldwide leading supplier within the field of graphic systems, technical and consumer imaging systems and services, today announced in a joint communication, that they have signed a definitive Transfer Agreement which integrates the digital printing systems (DPS) business of Agfa into Xeikon. The previously announced transaction was completed after a due diligence process. Subject to financial adjustments before closing, Agfa will receive approximately 1.6 million restricted shares of Xeikon N.V. that will be newly issued. The transaction will bring Agfa's stake in Xeikon up to maximum 25.5 percent of Xeikon's then outstanding shares. Agfa previously held approximately 5.8 million shares, or 20.1 percent stake in Xeikon. Agfa has agreed that it would not acquire any additional shares of Xeikon, for a period of one year after the transaction. The transaction is subject to the approval of Xeikon's shareholders at the extraordinary general shareholders meeting scheduled for June 30, 2000.

The Transfer Agreement has been reviewed by a group of non-affiliated directors of Xeikon based upon a fairness opinion of an independent investment banker as to the valuation and the terms of the Transfer Agreement.

The original memorandum of understanding called for the appointment of two board members suggested by Agfa. Fred Chaffart, a non-executive board member of Agfa-Gevaert N.V. and of Gevaert N.V., and Guido Verdeyen, president of the VUM Group, were appointed to Xeikon's board of directors in April.

The transferred business assets include Agfa's toner and developer technology, research and development staff, intellectual property and manufacturing operations - including a state-of-the-art toner manufacturing facility in Heultje, Belgium. Agfa's leading edge digital front-end technology and R&D staff, as well as the Belgium based international marketing and support teams, are also included.

MAN Roland, Xeikon's new OEM partner, will assume responsibility for the DPS sales and service staff and Chromapress customer base worldwide outside of the United States or Japan. The dedicated new company created by Xeikon and PrimeSource, Xeikon's largest Value Added Distributor, will assume responsibility for sales and service in the United States and Canada, and Xeikon Japan will integrate Agfa's activities in Japan.

Agfa currently sells digital color printing solutions under the Chromapress brandname for which the print engines from Xeikon are purchased. Since the start of Xeikon's operations, Agfa has been active in the development and the manufacturing of color toners and developers for use with the Xeikon print engines. 1999 revenues for Agfa's DPS business totaled approximately 68 million Euros (US $72.3 million at average 12 months 1999 exchange rates).

"This transaction confirms the confidence that Xeikon and its investors and partners have in the rapidly developing market for digital print solutions," said Alfons Buts, Xeikon's President and Chief Executive Officer. "The existing Chromapress users will have continuity in obtaining outstanding service through the combination of MAN Roland, the new joint venture of PrimeSource, and our own Japanese subsidiary,"

"By making full use of the synergies between our two companies, we can increase the impact of the integrated digital printing activities and provide a better and more efficient service to the customer," said Dr. Klaus Seeger, chairman of the board of management of the Agfa Group. "We view the integration as a more effective way for us to leverage the full potential of our DPS capabilities. In increasing our interest in Xeikon N.V., Agfa pursues a long term interest in the digital printing industry and its promising market applications."

Xeikon N.V. develops, produces and markets commercial digital color presses and related consumables specifically designed to meet the quality, speed, reliability, cost, variable content and on-demand requirements of the global digital color printing market. Xeikon supplies both original equipment manufacturers, as well as a global network of over 30 value-added distributors (VAD's) operating in more than 40 countries.

Through its 80 percent equity interest in Nipson International SA (France), Xeikon is also a major manufacturer of digital black and white presses that use a proprietary "magnetography" technology most suited for use in heavy-duty applications. Xeikon N.V can be found on the World Wide Web at http://www.xeikon.com. Visit our special Drupa site at http://www.drupa.xeikon.com.

The Agfa-Gevaert Group is one of the world's leading imaging companies. Agfa develops, produces and sells analogue and digital systems aimed chiefly at the graphics industry, medical and industrial radiography, micrographics and cine-film, and desktop publishing and photography for consumers. Agfa's head office is located at Mortsel (Belgium). The firm employs 21,872 staff in 40 countries and has 120 agents throughout the world. In 1999, it produced total turnover of 4.731 billion euros. Further information about Agfa can be found at: www.agfa.com.

This news release contains forward-looking statements, and actual results may vary from those expressed or implied herein. Factors that could affect these results include those mentioned in Xeikon's 1998 annual report and its annual and quarterly filings with the Securities and Exchange Commission.