Heidelberg Lowers Expectations for the Current Fiscal Year

• No significant recovery perceptible on main markets to-date
• Management Board passes additional program to enhance efficiency

Based on the latest economic and market estimates, Heidelberger Druckmaschinen AG anticipates sales to fall behind projections for fiscal year 2002/03.

"A significant economic recovery seems to be protracted further in the US as well as in Central Europe, and particularly in Germany. Due to the restrained spending activities of the advertising sector, the utilization rate of our customers' capacities still is low, thus leading to an ongoing reluctance to invest. The expected recovery has been undermined by a renewed downtrend in August", stated Bernhard Schreier, Heidelberg's CEO. Business developments in the current second quarter also show that, compared to the first quarter, incoming orders are unlikely to reach the expected level.

Heidelberg's Management Board therefore expects sales to fall 10 percent below the figure of 5 billion euros achieved in the past fiscal year. In order to limit the negative effects on the profit, the Managements Board passes an additional program including cost-cutting measures to the amount of 200 million euros, which will become fully effective no later than in the next fiscal year. "These measures aim at streamlining and flexibilization to ensure that our strategic outlining as the leading solution provider for the print media industry can be realized with enhanced efficiency", the Company's CFO, Dr. Herbert Meyer, explained.

Information to the editors:
Bernhard Schreier, CEO, and Dr. Herbert Meyer, CFO, will be available for further questions today at 11:30 am via conference call.
Dial-in number: +49 (0)30 726 17 07 78

For further information:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
E-Mail: thomas.fichtl@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.