Preliminary Figures for the 2003/2004 Fiscal Year

• Sales for fiscal year 2003/2004 at 3.661 billion Euro
• Free cash flow of 114 million Euro much better than predicted
• Operating result in fourth quarter twice that of previous year
• Incoming orders in fourth quarter 1 billion Euro
• Transfer of the Digital Division to Eastman Kodak Co. concluded on May 1, 2004

Heidelberger Druckmaschinen AG (Heidelberg) concluded the 2003/2004 fiscal year ending March 31, 2004 with sales around 11 percent lower than the previous year in line with expectations. Preliminary figures for sales by the Heidelberg Group were 3.661 billion Euro (previous year: 4.1 billion Euro). Adjusted for currency effects, sales were down six percent. Incoming orders in the fiscal year just closed were around 3.8 billion Euro (previous year: 4 billion Euro). In the fourth quarter alone, orders were in the region of 1.0 billion Euro.

The preliminary operating result for the period under review was 20 million Euro (previous year: 102 million Euro) which was higher than the predicted break-even result. This primarily resulted from the implemented cost-cutting measures which saved 240 million Euro. In the fourth quarter alone, the operating result improved considerably to 110 million Euro (previous year: 54 million Euro). Despite high non-recurring expenditures for efficiency improvements and restructuring, the free cash flow in 2003/2004 was positive at 114 million Euro, considerably higher than forecast ( -100 million Euro). The preliminary result after taxes for the 2003/04 fiscal year was -695 million Euro (previous year:  -138 million Euro). This includes non-recurring expenditures to the value of 569 million Euro, mostly for depreciation of book values, for restructuring costs and expenditures in connection with the discontinued Digital and Web Systems operations.

As of March 31, 2004, the Heidelberg Group had a workforce of 22,782 worldwide (previous year: 24,181).

Developments in the various regions and divisions Sales for fiscal year 2003/2004 in the North America, Latin America, Europe and the Middle East regions were affected by low investment in the industry. Only in the fourth quarter were there signs of a slight improvement in business in these regions. Business in Eastern Europe and Asia/Pacific was pleasing, with sales either improving or remaining at a high level.

The Sheetfed Division concluded the year with a very positive operating result, but despite clear improvements in efficiency was still unable to fully make up the drop in sales of over 14 percent. In all other divisions, the operating result improved.

Kodak contract comes into effect
The contract governing the sale of the Digital Printing operations to Eastman Kodak Co., which was concluded on March 8, 2004, came into effect on May 1, 2004.

Note for editors:
The key preliminary data for fiscal year 2003/2004 was published in an ad-hoc report on April 19, 2004. The complete annual accounts for the year closing March 31, 2004, and the transition to Heidelberg's new segment reporting structure will be presented at the Annual Press and Analysts' Conference on June 8th, 2004.

For further information about Heidelberg visit the Internet Press Lounge at www.heidelberg.com.

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.