Baldwin Technology Letter to Shareholders

Dear Shareholders,

During Fiscal 2007, our leadership position in process automation equipment for the global offset printing industry was further strengthened by the completion of two acquisitions and one alliance, each closely related to our core competencies.

In October 2006, Baldwin entered into an alliance agreement with Robatech for gluing products. In November 2006, Baldwin acquired Oxy-Dry Corporation, a company with sales in excess of $35,000,000 whose primary line of products is a brush cleaning technology that complements Baldwin’s cloth cleaning technology. In April 2007, Baldwin added web cleaning technology to its portfolio of cleaning products with the acquisition of Hildebrand Systeme, a company with sales of approximately $5,000,000. These additions to our product portfolio further solidified the Company’s position as the preferred independent supplier of process automation equipment, both to OEM press manufacturers as well as to printers and publishers.

Concurrent with the acquisition of Oxy-Dry Corporation, the Company restructured its financing and entered into a credit arrangement with LaSalle Bank of ABN Amro, with Citizens Bank and Webster Bank as participants. This $50 million facility provided the financing for the acquisition of Oxy-Dry and Hildebrand Systeme. As the Company continues to pursue its growth strategy, this facility will also provide the capacity to accommodate our changing future needs.

The global management team responsible for developing and implementing these acquisition and financial actions has also been evolving and changing over the past several years. As noted in prior Annual Reports, Karl Puehringer was promoted to the position of President and Chief Operating Officer on July 1, 2005. Karl was elected to the Board of Directors of Baldwin Technology Company in 2006, and, as of July 1, 2007, he has been appointed as Chief Executive Officer (CEO) of the Company. His management abilities, his knowledge of the Company and its products, and his understanding of the graphic arts market that the Company serves, all make him well qualified to lead Baldwin as its new CEO.

We have made other management changes over this same timeframe. In last year’s Annual Report, we commented that Dr. Ichiei Imafuku had been appointed as the President of Baldwin Japan in July 2006. His business skills and plans are favorably impacting both the Company’s operational performance in Asia as well as the execution of our strategic plans in Japan and in China. More recently, in March, John Jordan joined Baldwin Technology as its Chief Financial Officer. John’s background and knowledge will be of great importance in building shareholder value as we evaluate potential business opportunities, alliances and acquisitions, and continue to optimize our capital structure.

Baldwin has also been fortunate in obtaining and retaining some very good management talent through the acquisitions completed this year. A number of the managers and leaders from Oxy-Dry Corporation and Hildebrand Systeme are fulfilling important roles within the enlarged Baldwin management team. They will be instrumental in providing additional drive and direction relative to the opportunities and challenges of the future.

While we recognize that graphic arts growth rates in developed countries generally lag GDP growth rates, we believe that when the market growth in these developed countries is combined with the higher growth rates of emerging markets, the combination will provide Baldwin the potential to consistently grow revenue. We also believe that Baldwin’s employee, product and financial resources can be leveraged with the Company’s leadership talent to create the additional opportunities necessary to achieve uniform future growth. Baldwin intends to pursue those opportunities by: a) better serving its existing customer base through the increased range of its value-added process automation equipment, b) expanding our coverage in those emerging markets possessing strong medium-term growth rates, and c) making selective acquisitions of capital equipment and related-product companies whose steady revenue streams will strengthen the Company’s competitive position in the marketplace.

Of course, the Company will be watchful of shareholder value as we implement our plans for long-term growth. While we have generally been pleased with our stock price performance over the past few years, we intend to improve on that positive trend by continuing to operate Baldwin in a manner that maximizes long-term shareholder value. We appreciate the continuing support and interest of Baldwin’s shareholders.

We want to express our thanks to our customers for the confidence that they have placed in Baldwin Technology through the purchase of the Company’s products and services this past year. These continuing relationships are important to us, and we recognize that everyone at Baldwin must work tirelessly to earn customer trust and support. We want to also express our appreciation to all of the Company’s suppliers, consultants, and advisors for their contributions to our performance in Fiscal 2007.

Finally, we are grateful for the efforts of all of the Baldwin Technology personnel around the world. Without their individual, and collective contributions, the accomplishments of this past year could not have been achieved.

We noted earlier that Karl Puehringer had been appointed to the position of Chief Executive Officer. Gerald Nathe will remain as the Chairman of Baldwin Technology, primarily focusing on and assisting Karl with long range planning and acquisitions. We are both pleased with the management team that has now been assembled to take the Company’s performance to another level. Their ideas, energy and skills will lead Baldwin on a sustained growth path into the future.