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Baldwin Reports 3Q Results: To Vigorously Target the Retrofit Markets

Press release from the issuing company

SHELTON, Conn.--May 9, 2002--Baldwin Technology Company, Inc. reported today that net income for its third quarter ended March 31, 2002 was $1,038,000 or $0.07 per diluted share, compared to $332,000 or $0.02 per diluted share, for the third quarter of the prior year. Net sales for the current period were $38.9 million versus $47.6 million for the prior year's quarter. Excluding the effects of divested operations and currency translation, net sales for the current third quarter would have been $41.7 million compared to $39.5 million for the prior year, while the net income comparison would have been $1.3 million and $0.4 million, respectively. John T. Heald, Jr., President and CEO, commented: "We had a good third quarter, and are pleased to be continuing the trend towards improvement of our overall results. However we are experiencing a challenge in booking new orders and we expect this slow order intake to continue for the next three to six months." The Company's backlog as of March 31, 2002 was $44.6 million compared to $50.0 million at December 31, 2001. Orders for this year's third quarter were $33.4 million versus $30.2 million for the prior quarter. Vijay C. Tharani, Vice President and CFO, stated: "As we reported last quarter, our restructuring plans remain on schedule, and we continue to be pleased with our progress. With the recent move of manufacturing operations from Shelton, Connecticut, to the Emporia, Kansas plant, our facility consolidation activities are largely concluded. The balance of our restructuring activities is scheduled to occur before our fiscal year end." Mr. Heald concluded: "We recently participated in IPEX, a large international trade show in England, where we experienced a good deal of interest in our products but saw a noticeable softness in the market and in the OEM business. Nevertheless, we have recently negotiated arrangements with several OEMs under which Baldwin systems are standard on certain models of sheetfed and web presses. We are also implementing an aggressive strategy of utilizing our globally deployed sales and service operations to vigorously target the retrofit markets to offset the slowness in our OEM business."