Baldwin Earnings Doubled in Third Quarter

    Business Editors

    SHELTON, Conn.--(BUSINESS WIRE)--April 28, 2005--Baldwin Technology Company, Inc. (AMEX:BLD) reported today that net income for its third quarter ended March 31, 2005 was $1,509,000 or $0.10 per diluted share, representing a growth of approximately 100% over net income of $705,000 or $0.05 per diluted share for the comparable period of the prior year. Net sales for the quarter were $43,673,000 compared to net sales of $42,770,000 for the quarter ended March 31, 2004. Currency translation contributed approximately $1,120,000 to the gain in net sales and $130,000 to the net income improvement.
    Vijay C. Tharani, Vice President and Chief Financial Officer, noted: "Our significant growth in earnings was primarily attributable to two factors -- an improvement in gross margins from a more favorable product mix, and reduced interest expense as a result of the refinancing of our bank loan earlier this fiscal year."
    Net sales for the nine months ended March 31, 2005 were $124,902,000 compared to $116,724,000 net sales for the nine months ended March 31, 2004. Excluding the effects of currency translation, net sales grew by about 2% for the nine-month period. Year to date net income was $3,016,000 or $0.20 per diluted share, up 15.6% from net income of $2,608,000 or $0.17 per diluted share for the nine months ended March 31, 2004. The prior year's nine months income before taxes of $4,557,000 included approximately $1,600,000 of favorable foreign exchange gain associated with the Company's then outstanding debt.
    Backlog at March 31, 2005 was up substantially at $57,500,000 from $50,500,000 at December 31, 2004. Orders for the third quarter were $50,700,000 compared to $43,711,000 for the previous quarter, representing an increase of 16%.
    "Overall, we are very pleased with the results for the third quarter", Mr. Tharani added. "During the quarter, the Company generated $3,900,000 in operating cash flow, primarily due to decreased inventory and accounts receivable. This enabled the Company to repay approximately $4,700,000 of its outstanding debt. We continue to see improvement in both our order rates and our backlog levels, which have strengthened even further since the end of the third quarter. Looking ahead, we expect sales for the fiscal fourth quarter to exceed levels achieved in the third quarter."
    Gerald A. Nathe, Chairman, President and Chief Executive Officer, further commented: "The third quarter contained other good news for the Company. In March, Baldwin entered into an alliance with Hildebrand Systeme, a German company that manufactures high performance web cleaning products. Earlier in the quarter, we released news of substantial newspaper orders received from Star Publications in Malaysia, Shimotsuke Newspaper in Japan, and the News Limited Group in Australia. Orders like these have helped to increase our backlog to some of the highest levels seen in a number of years."
    In other news, the Company announced that, effective March 18, 2005, it had relocated its corporate offices to 2 Trap Falls Road, Suite 402, Shelton, CT 06484.

    Baldwin plans to review its third quarter results and discuss its business outlook during a conference call today beginning at 11:00 a.m. EST. Call in information is available on the Company's web site at www.baldwintech.com under the Investor Relations section. Interested investors are encouraged to log onto the web site and either participate in the call or access the webcast of the call. Participating in the call will be Baldwin's Chairman, President and Chief Executive Officer, Gerald A. Nathe, as well as its Chief Financial Officer, Vijay C. Tharani.

Baldwin Technology Company, Inc. Condensed Consolidated Statements of Income (Unaudited, in thousands, except per share data)

Quarter ended March 31, 2005 2004 ---------- ---------- Net Sales $ 43,673 $ 42,770 Cost of Goods Sold $ 29,232 29,389 ---------- ---------- Gross Profit 14,441 13,381 Operating Expenses 12,345 11,219 Restructuring Charges (338) 0 ---------- ---------- Operating Income 2,434 2,162 Interest Expense 462 1,383 Interest (Income) (26) (34) Other (Income), net (375) (569) ---------- ---------- Income before income taxes 2,373 1,382 Provision for income taxes 864 677 ---------- ---------- Net income 1,509 $ 705 ========== ========== Net income per share - basic and diluted $ 0.10 $ 0.05 ========== ========== Weighted average shares outstanding - basic 14,911 15,015 ========== ========== Weighted average shares outstanding - diluted 15,274 15,429 ========== ==========

Nine Months ended March 31, ----------------------- 2005 2004 ---------- ---------- Net Sales $ 124,902 $ 116,724 Cost of Goods Sold 85,663 79,777 ---------- ---------- Gross Profit 39,239 36,947 Operating Expenses 34,482 32,064 Restructuring Charges (338) 426 ---------- ---------- Operating Income 5,095 4,457 Interest Expense 1,985 3,738 Interest (Income) (79) (90) Other (Income), net (1,768) (3,748) ---------- ---------- Income before income taxes 4,957 4,557 Provision for income taxes 1,941 1,949 ---------- ---------- Net income 3,016 $ 2,608 ========== ========== Net income per share - basic and diluted $ 0.20 $ 0.17 ========== ========== Weighted average shares outstanding - basic 14,895 15,015 ========== ========== Weighted average shares outstanding - diluted 15,315 15,229 ========== ==========

Baldwin Technology Company, Inc. Condensed Consolidated Balance Sheets (In thousands, unaudited)

March 31, June 30, Assets 2005 2004 ----------- ----------- Cash and equivalents $ 11,037 $ 12,008 Trade Receivables 37,155 37,725 Inventory 24,191 24,998 Prepaid expenses and other 4,452 5,921 ----------- ----------- Total Current Assets 76,835 80,652 Property, plant and equipment, net 4,211 4,540 Intangible assets 14,005 13,363 Other assets 17,192 16,716 ----------- ----------- Total assets 112,243 115,271 =========== ===========

Current liabilities Loans payable 2,798 2,757 Current portion of long-term debt 1,079 20,523 Other current liabilities 46,639 48,998 ----------- ----------- Total current liabilities 50,516 72,278 Long-term debt 17,150 1,794 Other long-term liabilities 6,664 6,732 ----------- ----------- Total liabilities 74,330 80,804 ----------- -----------

Shareholders' equity $ 37,913 $ 34,467 ----------- -----------

Total liabilities and shareholders' equity $ 112,243 $ 115,271 =========== ===========

    CAUTIONARY STATEMENT--This Release may contain statements regarding expected future order, backlog and sales rates, operating margins and profitability or other statements, which may constitute "forward-looking" information as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and actual results may differ. See Exhibit 99 to the Company's Form 10-K Report for the fiscal year ended June 30, 2004.

--30--TM/ny*

CONTACT: Baldwin Technology Company, Inc. Helen Oster, 203-402-1004

KEYWORD: CONNECTICUT INDUSTRY KEYWORD: PUBLISHING MANUFACTURING EARNINGS SOURCE: Baldwin Technology Company, Inc.

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