Welcome to the Baldwin Technology Q4, year-end conference call. (Operator Instructions) I would now like to turn the call over to Helen Oster, Corporate Secretary.

I'm Helen Oster, Corporate Secretary and Director of Investor Relations for Baldwin Technology Company. Also with me today on this call are Karl Peuhringer, President and Chief Executive Officer; and John Jordan, Vice President and Chief Financial Officer of the company. Participating by teleconference is Gerry Nathe our Chairman. I'd like to remind participants that this call is being recorded. An audio replay of the call will be available for one week. The telephone numbers are provided in the earnings release and on our website. An archived webcast will also be available for 90 days through a link on the Investor Relations section of the Baldwin website at www.baldwintech.com. Now before we begin, I will read our cautionary statement. During this presentation, representatives from the Company may make statements or present information regarding expected future order in sales rates, operating margins and profitability or other items which may constitute forward-looking information as that term is defined in the Private Securities Litigation Reform Act of 1995, or by the Securities and Exchange Commission in its rules, regulations and releases. Listeners are cautioned that any such forward-looking statements are not guarantees of future performance and we urge you to read Item 1-A, Risk Factors, in the company’s report on Form 10-K for the year ended June 30, 2007, for some of the factors that could cause actual results to differ materially from estimates contained in any of the company's forward-looking statements made during this presentation. Having read that let me now introduce our President and Chief Executive Officer, Karl Peuhringer for comments regarding Baldwin’s performance. Karl.

Thank you Helen and good morning to all of you, and welcome to our fourth quarter and year end earnings conference call. During the fourth quarter the company reported total net sales of US $65.3 million representing an increase of $8.4 million or 14.8% compared to the same period in prior year. This represents one of the strongest shipment quarter in the company’s history. Giving the current status of the global economy and based on recent press releases from other companies in the printing industries, Baldwin’s positive results might come as a surprise. I will comment later during my remarks on key drivers for this improved performance. As a result of our strong shipment levels in Q4, the company also recorded strong operating income during the quarter. Additionally, the company made significant progress during the second half of its fiscal year 2008, in managing the cash flow from operating activities through active working capital managements. John Jordan will review with you the highlights of our financial performance after my remarks. The high fourth quarter shipments reduced our order backlog to $48 million at the end of June 2008. Strong order in-take during the month of July, including the booking of a $2.6 million Newspaper order from Nikkan Sports Newspaper Printing Company, a subsidiary of Asahi Newspaper Group in Japan increased our order backlog to $54 million at the end of July 2008. In fact our order in-take during the month of July this year was almost 30% higher than the order rate in July, one year ago. As I mentioned previously, Baldwin performed stronger during the past several months than one might expects based on the current economic conditions. Several initiatives and dynamics contributed to this development; firstly for Baldwin there are two favorable trends in the newspaper industry. (a)…

As Karl mentioned we are very pleased with the fourth quarter and the results for the year. As you read in the press release net sales for the fourth quarter was $65.3 million versus $56.9 million for the same quarter in 2007, an increased of $8.4 million or 14.8%. Favorable currency effects contributed 10.9% growth or $6.2 million. Sales for the year of $236.3 million were $34.9 million or 17.3% higher than fiscal 2007, of which 8% or $16.1 million was attributable to currency effects and $16.1 million was attributable to acquisitions. We recorded growth in nearly all product lines, with healthy growth from recurring revenues product, service and consumables. Growth margin of 32.2% in the quarter was slightly less than the 32.4% reported in fourth quarter 2007, but improved our total year 2008 gross margin to 31.6%. The currency adjusted margin was 31.8% less than last years fourth quarter margin, but improved from the currency adjusted 30.8% in third quarter this year. Our strategic sourcing initiatives and improvements in production efficiencies help us maintain reasonable margins in a challenging market environment, and our existing global infrastructure facilitates this important sourcing flexibility. Operating expenses for the current quarter of $17.3 million were $1.8 million greater than the same quarter last year, $1.4 million of which was attributable to currency effects. As a result of the restructuring initiated in 2007 and 2008, our disciplined approach to cost management, OpEx decrease as the percentage of sales from 27.3% in fourth quarter 2007 to 26.5% in fourth quarter 2008 and total year from 27.7% in 2007 to 27% in 2008. With respect to the integration of the Oxy-Dry acquisition in November 2006 we are pleased to report that it has been completed and all the planned operating savings have been achieved. Interest expense,…

Thank you John, this concludes the management’s presentation. We will now be pleased to take your question.

While we are waiting for the first question, Karl will make a few comments about upcoming print exhibitions.

I’m pleased to inform that Baldwin will be participating at Graph Expo during October 26 through 29 at McCormick Place South in Chicago, the industries largest and most comprehensive exhibition in the America. With over 400,000 net square feet of exhibitions space, this exhibition should be a good follow up for us in the America’s of the successful Drupa exhibition in Europe. Also during October 27 to 30 we will be present at the International Newspaper and Media Industry Trade Show April 2008 in Amsterdam, (Inaudible) will be on the promotion of several technical development, product offerings, engineered to set new standard for reduce wash time paper rate and consumable usage will be released during April 2008. At April Baldwin will also present an expanded range of equipment and consumable technologies for the semi-commercial sector, Christy back to you.

(Operator Instructions) Thank you our first question comes from Jessie Greenfield.

Yes, a couple of questions here, what’s the progress on the lawsuit that’s going on?

Jessie I’m sure your referring to the lawsuit with Technotrans as it relates to pattern entrenchment in the past, that is currently at the Supreme Court in Karlsruhe and we understand that there are many pending cases at this moment in time at this Supreme Court so, our expectations at this moment is in time is there should be ruling during the first half of a calendar year 2009.

That’s the first half of 2009 correct?

Yes.

Next question is your buyback program, not that you have released your numbers do you anticipate starting up the program again.

Hi, Jessie good question, this is John Jordan. We have an available amount under that program of about $2.3 million and we continually watch and make repurchases when it’s appropriate.

And can you give us any inside into the quarter that you’re in currently?

I think we commented about the orders in July, the orders have been better than last year close to 30% and since we don’t give guidance, I think that’s about all that we are going to comment on this quarter.

Our next question comes from Tamara Manoukian with Greenwood Investments. Tamara Manoukian - Greenwood Investments Just a few questions, I thought that John mentioned that Oxy-Dry sales, alternately acquisition sales contributed $16.1 million in sales this quarter. Is that correct or am I confusing something.

No, that’s during the year Tamara, during the first six months of the year the comparable period during ‘07 didn’t have Oxy-Dry, it was actually the first five months. Tamara Manoukian - Greenwood Investments What was the contribution in the fourth quarter of this year from acquisitions?

In the fourth quarter of this year, we are not really tracing it anymore from acquisition because those operations are now fully integrated Tamara. So, we’re not directly tracking that anymore, but I can’t share with you that based on the integration both of Oxy-Dry corporation, which we bought late in calendar year 2006 and the acquisition of Hildebrand’s that was during the first half year of calendar 2007, of those product lines that is the brush cleaning technology as well as the web cleaning technology has actually preformed better than what we expected and again we attribute that to a consistent integration of the team and the employees of those companies and we also attribute that to the good technology, which we also upgraded in the meanwhile and all of the above has resulted in better than expected demand. Tamara Manoukian - Greenwood Investments That’s great. I think Oxy-Dry’s margins, when you guys justified were below your deals of Baldwin legacy margins, and one of the goals was to bring it up to legacy margins. So, I was wondering if we are on the right track, and if there is more room for improvement in terms of gross margins?

Yes Tamara, I think what we’ve said in the past was that by the end of calendar 2008 Oxy-Dry margins would be comparable to Baldwin's, and we are making very good progress towards that goal. Tamara Manoukian - Greenwood Investments And is there more room for improvement going forward in terms of gross margin?

There is definitely more room for improvement, but as I’ve said we’ve made really good progress. Tamara Manoukian - Greenwood Investments Okay, perfect and just a few housekeeping questions. What was depreciation and amortization in the quarter?

$2.8 million. In the quarter… Tamara Manoukian - Greenwood Investments In the quarter?

Its $2.8 for the year. Tamara Manoukian - Greenwood Investments Okay that’s fine, and what about capital expenditures for the year?

CapEx for the year was $1.857 to $1.9.

Christy, any more questions?

Our next question comes from Harold Hause, he’s a shareholder.

Yes, good morning. Couple more questions on the law suit, I was reading in the 2005 annual report that they a settlement was expected in 2006, then I read in the 2006 annual report, that the settlement was expected in 2007. Then I thought on the past conference call, it was indicated they thought something would becoming up February of this past year or this year and I’m just wondering do they have any type of docket where these cases are setup or they are going to be heard, or do they just pick them randomly?

Harold referring, obviously there was no settlement between Technotrans and Baldwin, so we are now relaying on the result from the Supreme Court in Karlsruhe, as it relates to how they chose the cases. I cannot really comment on that and I don’t really have the inside information on that, I only understand from our attorney in Germany, he’s based in Munich that they have a huge backlog at this moment in time and I don’t really know what the causes is for that either, and again originally, I think we’ve never been earlier that first half of calendar 2008, we have never been earlier with our expectations as a results from the Supreme Court and that is now basically one year delay, and the decision is on the nullification of the patent which we has one at the Patent Court in Munich and we are confident that the decision at the Supreme Court will again be in our favor.

Has any attempt been made to negotiate with these people and proximately get a lesser settlement and maybe some type of licensing agreement or anything interest negotiating?

I’m always a friend of settlements. Whatever we can do I preserve settlement, but as we are still waiting for the Supreme Court, it’s the solid indication that’s we have not been able to reach that settlement, again I’m always open for our proposals from Technotrans, but at this moment in time we are waiting for the Supreme Court.

I know that’s a pretty good amount that they are talking about, I think up to US $40 million, is this company going to have the assets if the Supreme Court rules in Baldwin’s favor to even pay this amount. I’m not sure just what size company this is?

Yes, the amount is around $32 million euros and the dispute is in euros and Technotrans is a public company, so their assets are visible as well.

Christy..

Our next question comes from [Appam Bill from Claus Investments].

Could you give us a sense of what CapEx should be for the next 12 months?

We have a total CapEx project of about $3.2 million.

For the next 12 months?

Yes, we have some strategic initiatives that have CapEx associated with them. So, it’s a little higher than our normal CapEx of about $2 million.

Okay and D&A, I guess we can just take this past quarter and annualize them?

It will be close, probably closer to two or three.

Okay and as you look at, a previous quarter ask about the buyback and that you’d look at the cash flow that you’re generating. Are there any other potential uses of your cash flow, I mean are there acquisitions that you guys would look at or is it simply just using your cash either to buyback stock or pay down debt?

Well as we discussed with Jessie, the repurchase program is active and we use it as we think it’s appropriate. We have a strategy decline that includes organic growth and development within the company and there are alliances and potentially acquisitions that are part of that strategy. So, the cash flow and debt availability would be use for those as well.

Okay and what do you expect the tax rate to be for the next 12 months plus?

It should be in the order of 40% to 42%.

Since there are no more questions, let me wrap up today’s earnings conference call. Thank you for your participation. We appreciate you taking the time to hear about Baldwin’s latest news and development and we look forward to having you on our next call in October. Thank you.