KHD Humboldt Wedag International Ltd. Adjusts Contracts at Risk

NEW YORK, Oct. 27 /PRNewswire-FirstCall/ -- KHD Humboldt Wedag International Ltd. (NYSE: KHD) announced today that it has decided to remove approximately $100 million in contracts at risk from backlog and order intake.

KHD has completed a full analysis and review of all of its contracts at risk and as a result, KHD has decided to eliminate the category of "contracts at risk". KHD undertook this analysis of all of the contracts in this category and determined that the contracts either would not be proceeding, in which case the contracts were officially cancelled and removed from the order backlog, or would be proceeding, either as originally proposed or with a change of scope, in which case the contracts remained in the order backlog and no accounting entries were made for such contracts. After consultations with our customers and our Board of Directors, we believe that it is prudent at this time to remove these contracts from our order backlog and order intake.

KHD Humboldt Wedag International Ltd., CEO Jouni Salo commented, "KHD's primary consideration in conducting the analysis of the contracts at risk was whether there was any uncertainty as to whether the contracts would proceed. If such uncertainty existed, the contracts were classified as closed contracts and treated accordingly. KHD will continue to have dialog with these customers as they re-evaluate their projects."

About KHD Humboldt Wedag International Ltd.
KHD Humboldt Wedag International Ltd. (the "Company") owns companies that operate internationally in the industrial plant engineering and equipment supply business, and specializes in the cement industry. To obtain further information on the Company, please visit our website at http://www.khdhumboldt.com

    Contact Information:    Allen & Caron Inc.
                            Joseph Allen (investors)
                            1 (212) 691-8087
                            joe@allencaron.com
                            or
                            Brian Kennedy (media)
                            1 (212) 691-8087
                            brian@allencaron.com

                            Rene Randall
                            KHD Humboldt Wedag International Ltd.
                            1 (604) 683-8286  ex 224
                            randall.r@khd.de