August 9, 2004 -- For the first three months of fiscal 2004/2005 (April 1 to June 30), Heidelberg recorded sales of around 710 million Euro (previous year: 741 million Euro). Incoming orders amounted to 1,286 million Euro (previous year: 783 million Euro) and - as reported frequently - were influenced by the four-yearly drupa trade show held in Dusseldorf in May 2004. "Order levels from all regions were particularly favorable in the first quarter thanks to drupa. This will be reflected in the sales figures for coming quarters", stated Bernhard Schreier, CEO at Heidelberg. In line with expectation, the operating result of the Heidelberg Group was minus 54 million Euro (previous year: minus 43 million Euro). The operating result was burdened by the cost of the trade show drupa and by the losses of the segments Digital and WebSystems (minus 33 million Euro) which will cease in the future. "The operating result of the Press Division was minus 22 million Euro compared to minus 14 million Euro the previous year. From an operational point of view, however, the division has clearly performed more favorably, as it bore most of the trade show costs", stated Heidelberg CFO, Dr. Herbert Meyer. The net result in the period under review was minus 63 million Euro (previous year: minus 77 million Euro). As of June 30, 2004, the Heidelberg Group had a workforce of some 21,200 worldwide (previous year: 24,100). During the quarter, 1,396 employees in the Digital Division were transferred to Kodak. Developments in the Press and Postpress Divisions: High incoming orders and first signs of sales and operating result recovery The Press (Offset Printing) Division saw sales grow in the first quarter to 513 million Euro from 504 million Euro in the previous year. Incoming orders climbed by around 82 percent to 1.024 billion Euro thanks to the drupa effect. The operating result including the cost of trade show for the Press Division was minus 22 million Euro (previous year: minus 14 million Euro ). The Postpress Division experienced a slight increase in quarterly sales to 70 million Euro. Incoming orders increased by around 29 percent to 98 million Euro as result of drupa. The operating result recovered slightly to minus 8 million Euro. For the first time, Heidelberg showed the Financial Services Division separately in its accounts. The figure for the previous year have been adapted accordingly. The interest received from customer financing and shown as net sales was 19 million Euro (previous year: 23 million Euro). This was down on the previous year due to the decrease in the volume of the customer financing portfolio. Incoming orders from all regions were particularly pleasing due to drupa Incoming orders in the first quarter showed substantial growth in all regions due to drupa. The average increase exceeded 64 percent. Asia Pacific, Europe and Eastern Europe led the way. In the USA, the industry is focusing on the Graph Expo trade show which will be held in Chicago in October 2004. Goss International contract comes into effect The contract governing the sale of the Web Systems operations to Goss International was concluded on August 6, 2004.