As a result of the global financial and economic crisis and the dramatic collapse in order levels in the mechanical engineering sector, the financial year 2008/2009 (April 1, 2008 to March 31, 2009) proved extremely difficult for Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD).

Despite high demand at the drupa trade show in spring 2008, preliminary incoming orders in the past financial year amounted to EUR 2.906 billion, 20 percent down on last year�s figure (EUR 3.649 billion). Therefore, preliminary sales by the Heidelberg Group for the year as a whole totaled EUR 2.999 billion, 18 percent down on the previous year�s figure of EUR 3.670 billion. Accordingly, Heidelberg posted a preliminary operating result based on EBIT (including restructuring costs) of EUR -228 million (previous year: EUR 268 million). Excluding the restructuring costs, EBIT amounts to EUR�-49 million. As expected, the preliminary annual result is also negative at EUR -249 million (previous year: EUR 142 million).

�We responded quickly to the difficult situation by introducing tougher cost-cutting measures. We are already seeing first signs of success. For example, we recorded a positive free cash flow in the fourth quarter and have significantly reduced our inventories in the last few months. As the market leader, we are able to maintain � and even extend � our considerable competitive advantages in this time of crisis, which promises good prospects for growth when the economic climate brightens,� says Bernhard Schreier, Heidelberg CEO.

Almost all EUR 179 million invested in the cost-cutting program were incurred during the financial year just closed. Heidelberg expects to realize savings of between EUR 350 to 380 million in the financial year 2009/2010.

The global economic downturn continued into the fourth quarter (January 1 to March 31, 2009), leading to a sharp drop in orders by 43 percent to EUR 474 million for the quarter compared to the same quarter last year (previous year: EUR 825 million). At EUR 788 million, sales were down 28 percent on the same quarter last year (previous year: EUR 1.102 billion). Incoming orders up to March 31, 2009 amounted to EUR 649 million (previous year: EUR 874 million).

Thanks to its timely restructuring measures, Heidelberg succeeded in achieving an almost break-even operating result (excluding special items) in the fourth quarter despite the falling sales. In addition, Heidelberg was also able to achieve a clearly positive free cash flow totaling EUR�76 million in this difficult economic environment and cut its net debt � which increased for the year as a whole � from EUR 729 million in the previous quarter to EUR 657 million in the fourth quarter. Compared to the previous quarter, inventories were reduced considerably by EUR 177 million to EUR 1.034 billion (inventories at December 31, 2008: EUR 1.211 billion).

Since the start of the financial year 2008/2009, the company has reduced its staffing levels by around 1,400, including temporary workers. On March 31, 2009, the Heidelberg Group had a workforce of 18,926, including staff incorporated from new consolidations.

Heidelberg will publish its final figures for the 2008/2009 financial year on June 9, 2009.

For further information about the company, please visit www.heidelberg.com.

Important note:

This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.

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