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Heidelberg Concludes Negotiations on New Financing Concept

Press release from the issuing company

Heidelberger Druckmaschinen AG (Heidelberg) has concluded negotiations on its new financing concept, thereby securing the Group's liquidity for the next few years. This provides the company with a credit line totaling EUR 1.4 billion for the period up to the middle of 2012. In June, Heidelberg received loan pledges in principle from the banks and guarantee pledges from the Federal and State Governments. Now that the agreements have been signed, the documentation is complete. The deeds of guarantee will be issued and sent out before the end of August.

"Despite the difficult conditions on the financial markets, Heidelberg has succeeded in renegotiating its existing financing structure. The new financing framework will enable the company to bridge the period until the difficulties in securing loans within the financial system ease," stated Heidelberg CFO Dirk Kaliebe.

The financing package consists of three main components - a EUR 300 million loan from the Special Program of the KfW (Reconstruction Loan Corporation) for large companies (with a 50 percent indemnity from the KfW to the banks), a EUR 550 million loan supported by 90 percent guarantee pledges from the Federal Government and the States of Baden-Württemberg and Brandenburg, and a syndicated credit line from a consortium of banks, also for EUR 550 million.

Despite the current financial crisis, Heidelberg has been able to maintain its market position. The company's objective is to further increase the proportion of total sales accounted for by services, consumables, and packaging printing - areas of business that are relatively unaffected by economic cycles. Heidelberg customers around the globe are showing an interest in the company's new large format packaging solutions, and the first large format press has already been installed in China. At the same time, Heidelberg spares no effort to implement the package of cost-cutting measures it initiated in 2008. This will lay the foundation for the company to once again enjoy successful growth once the economy picks up again.