BOLINGBROOK, IL, June 17 - Goss International Corporation and Heidelberg have signed and executed a contract for Goss to acquire Heidelberg's Web Systems business. Included in the transaction are substantially all assets associated with the newspaper and commercial web press business, as well as the high volume post press activities. It is expected that the transaction will close in the next several weeks, after completion of the remaining regulatory procedures. This acquisition approximately doubles the revenue base of Goss International and creates one of the largest web offset printing press suppliers in the world. The combined entity will have operations in North America, Europe and the Asia/Pacific region and will have approximately four thousand employees focused on web offset. As part of the transaction MatlinPatterson Global Opportunities Partners, Goss International's major shareholder, will commit approximately one hundred million dollars of new capital to facilitate the integration of the two companies. In addition, Heidelberg will become a shareholder in the new company with an equity stake of approximately 15%. In fiscal year 2003/2004, Heidelberg's web offset sales amounted to 376 million Euro. This corresponds to roughly ten percent of the group's total sales (3.661 billion Euro). "This agreement is an important, active step in the consolidation process within this industry," said Bernhard Schreier. "By combining and restructuring activities, both companies are aiming for better capacity utilization, along with optimized market penetration due to the resulting enhanced product portfolio," said Dr. Herbert Meyer, CFO of Heidelberg. Bob Brown, CEO of Goss International, stated, "We at Goss are very excited about the acquisition. The combined product platforms, technology portfolio, global operations and team of professionals around the world provide us a great opportunity to create value for our customers. This is an exciting day for Goss International. The acquisition gives us the opportunity to integrate two of the best teams in the industry and build a company focused on the web offset sector." David Matlin, CEO of MatlinPatterson, reaffirmed the benefits of the new acquisition, "MatlinPatterson takes a long term view of all investments and this major acquisition creates a strong platform for future growth. The combination of the two complementary businesses will enhance the continued growth of Goss International in the future. MatlinPatterson is excited to have the opportunity to expand Goss' business and to continue the effort to build this strong industry brand." Concludes Bob Brown, "Our success will be determined by our customers and the value we can bring to their overall businesses. Customers determine our future and I believe the combination of Goss and Heidelberg Web can give them solid benefit today and over the long term. We look forward to closing the transaction and focusing on delivering value for our customers, employees and shareholders." Credit Suisse First Boston and Latham & Watkins LLP advised Goss International on this transaction.