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DJ DGAP-Adhoc: Heidelberger Druckmaschinen AG: Management Board decides on extension and accelerated implementation of a comprehensive package of measures

Heidelberger Druckmaschinen AG / Restructure of Company 

30.10.2008 

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Heidelberger Druckmaschinen AG hereby announces in compliance with Art. 15
of the German Securities Trading Act: 

- Heidelberger Druckmaschinen AG: Management Board decides on extension and
accelerated implementation of a comprehensive package of measures
- Total package of savings increased to EUR 200 million
- Worldwide cutbacks needed in personnel capacities, corresponding to up to
2,500 jobs
- Shorter working hours requested for German production sites from November
2008 onwards 

Heidelberger Druckmaschinen AG (Heidelberg) expects a significant downturn
in sales and thus a marked reduction in operating result (EBIT) for the
current financial year (April 1, 2008 to March 31, 2009) compared to last
year. The financial result is also expected to be down due to the current
financial crisis and the movements in interest rates. These developments
coupled with the restructuring costs will lead to a significant annual
deficit in the current financial year. 

Because of the unpredictable nature of the current financial crisis and its
impact on customers' investment decisions, Heidelberg will not, contrary to
earlier announcements, provide a quantitative forecast for the current
financial year. While financial year 2009/2010 is even more difficult to
forecast, the Management Board does not currently expect any change for the
better given the current developments. 

In the light of the significant fall in sales and earnings for both the
current and the next financial year, Heidelberg is extending its existing
comprehensive package of cost-cutting measures and accelerating its
implementation. Instead of the total cuts of EUR 75 million announced so
far, the total package will now yield savings of EUR 150 million to EUR 180
million as early as financial year 2009/2010. Further measures in financial
year 2010/2011 will boost total savings to around EUR 200 million. 

To reach this objective, Heidelberg will adapt personnel capacities and
organizational structures in Production, R&D, and Administration, but also
in sales organizations worldwide. For the short term, it will request
shorter working hours to achieve an immediate capacity adjustment. To
achieve long-term adaptations to our capacities and structures, we will
need to reduce worldwide staffing levels by up to 2,500 jobs. Every effort
will be made to keep the social impact of these job losses as small as
possible. In the process, it is likely that operational redundancies will
be necessary at the company's German sites. Talks with employee
representatives about the restructuring measures will start immediately.
The collective agreement for safeguarding jobs
(Zukunftssicherungstarifvertrag), concluded in 2007, calls for such
negotiations in the event of significant changes in market conditions and
lays down a number of arrangements for the procedures to be followed and
their implementation. 

Given this additional need for restructuring measures, the overall costs
for the extended package of measures will rise to EUR 130 million to EUR
150 million. The restructuring measures already include provisions from the
collective labor agreement for partial retirement recently signed for the
metal industry. Most of the restructuring costs are expected to arise in
financial year 2008/2009. 

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. 

Contact:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Tel.: +49 6221 92 4747
Mobile: +49 173 3186947
Fax: +49 6221 92 5069
E-Mail: thomas.fichtl@heidelberg.com 

30.10.2008  Financial News transmitted by DGAP 

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Language:     English
Issuer:       Heidelberger Druckmaschinen AG
              Kurfürsten-Anlage 52-60
              69115 Heidelberg
              Deutschland
Phone:        +49 (0)6221 92-60 21
Fax:          +49 (0)6221 92-51 89
E-mail:       investorrelations@heidelberg.com
Internet:     www.heidelberg.com
ISIN:         DE0007314007
WKN:          731400
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Düsseldorf, Hamburg, München, Berlin, Hannover, Stuttgart 

End of News                                     DGAP News-Service 

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(END) Dow Jones Newswires

October 30, 2008 08:01 ET (12:01 GMT)