Heidelberg Transfers Web Offset Division to Goss

HEIDELBERG, GERMANY--June 17, 2004--Heidelberger Druckmaschinen AG (Heidelberg) will transfer its web offset division (Web Systems) to Goss International. The two companies signed an according agreement, which is yet to be confirmed by the relevant European antitrust organizations. The transaction is expected to be closed within the next weeks.

The deal includes the business areas of Commercial Web, Newspaper and, in the US, Finishing Systems for web offset machines. Heidelberg reportedly will hold a 15 percent share in Goss International, but the companies said they agreed not to disclose the financial specifics of the transaction.

"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," asserted Dr. Herbert Meyer, CFO of Heidelberg.

Heidelberg entered the web offset business by acquiring Harris Graphic Corp. in 1988. In fiscal year 2003/2004, web offset sales amounted to Euro 376 mill. This corresponds to roughly 10 percent of the of the group's total sales (Euro 3,661 billion). More than 2,000 employees at sites mainly in the U.S., France and Netherlands reportedly will be impacted.