Oce N.V. (Nasdaq: OCENY)

-- Third quarter revenues corrected for the sale of leases increased by
3.0% on an organic basis.
-- Sales of new printing systems increased by 12.2% in the quarter. This
brings growth for the first three quarters to 12.3%.
-- Revenues from service contracts rose by 0.2% thanks to the continuing
increase in the sales of new printing systems.
-- Oce made a tender offer on September 16 to acquire Imagistics
International Inc., a US distributor of copiers and printers with
revenues of USD 609 million (2004).
-- Operating income from commercial activities, excluding book profit on
the sale of the lease portfolio, is expected to increase in 2005 by
20% compared with 2004.

Commenting on the third quarter results, Rokus van Iperen, chairman of the
Board of Executive Directors of Oce N.V., said: "Oce has shown a clear
improvement during the third quarter, with growth in the sales of printing
systems again reaching double-digit level. This continuing growth in new
machine sales has led to a stabilization in revenues from service contracts,
which account for 45% of Oce's turnover. The trend now appears to have
turned, and gives us grounds for optimism about future prospects.
The recently announced acquisition of Imagistics International Inc. will
strengthen our distribution power in the US, enabling us to achieve one of our
most important strategic goals. We expect the operating income from commercial
activities in 2005 to be significantly higher than the 2004 result."

Oce results third quarter and nine months 2005*

Third quarter Nine months
In million euro 2005 2004 organic 2005 2004

Revenues 649.6 645.7 0.6% 0.6% 1,912.8 1,950.3
Operating income 13.6 16.6 -18.5% -11.5% 42.1 81.3
Net income 8.9 14.1 -37.3% -31.9% 28.6 52.7
In euro per share
Net income 0.10 0.16 -37.3% - 0.32 0.60

Third quarter Nine months
In million euro 2005 2004 2005 2004

Operating income 13.6 16.6 28.5 81.3
Financial
activities 4.1 10.0 10.2 39.0
Profit on sale of
lease contracts 0.4 8.1 2.8 20.8
Operating income
commercial
activities (excluding
book profit on
sale of leases) 9.1 -1.5 15.5 21.5

* The figures in this report are unaudited. The report has been prepared
on the basis of Dutch GAAP; as compared to the Annual Financial
Statements for 2004 there have been no changes in the accounting
principles used for financial reporting.

Results third quarter 2005
Revenues corrected for the sale of leases increased by 3.0% on an organic
basis. This growth was driven primarily by the increase of 12.2% in the sales
of new printing systems. Almost all product lines showed significantly higher
sales compared with the preceding year. Recurring revenues (excluding leases)
declined on an organic basis by 0.4%. This is a significant improvement of the
trend, in view of the fact that these revenues still showed a decline on an
organic basis of 2.5% in the second quarter of 2005. The improvement was
caused mainly by higher revenues from service contracts (0.2%) compared with
the third quarter of 2004.
A breakdown of the development of recurring revenues over the past five
quarters is shown on page 9 of the full report.
The book profit on the sale of the lease portfolio was euro 0.4 million
(2004: euro 8.1 million).

The gross margin was positively influenced by 1.6% thanks to higher
revenues and the associated better utilization of manufacturing capacity.
Total gross margin was the same as in the third quarter of 2004 because of the
effect of the results on hedging transactions (-0.2%) and of the lower lease
revenues (-1.4%).

Operating expenses rose by 1.8%. To ensure that the positive trend in the
development of revenues is maintained in the longer term, the investments
(expenses) of the Strategic Business Units in their marketing and sales
activities were increased. The operating expenses rose in accordance with the
growth strategy of Oce. Cost control will remain an important focus for Oce;
this means that operating expenses will increase less rapidly than revenues in
the future.

Operating income amounted to euro 13.6 million (2004: euro 16.6 million).
Corrected for the sale of leases (euro 15.0 million) and exchange rate effects
(euro 1.2 million), operating income increased by euro 13.2 million compared
to the third quarter of 2004.

Financial expense (net) declined by 20.5% to euro 3.9 million because of a
reduction in the level of debt.

Income taxes totalled 1.9%. Taxes will decline further in the fourth
quarter because of a supplementary R&D credit claim worth euro 4.8 million.
Net income was euro 8.9 million (2004: euro 14.1 million).
Per ordinary share outstanding the net income was euro 0.10 (2004: euro
0.16).

Results by Strategic Business Unit
In Digital Document Systems (DDS) revenues in the third quarter were euro
442.6 million (2004: euro 441.3 million).
Corrected for the sale of leases, the organic growth in revenues was 3.3%.
Sales of printing systems increased by 15.7% on an organic basis.
The operating income of DDS amounted to - euro 4.4 million (2004: euro 3.6
million). The DDS result was strongly influenced by the decline in lease
revenues, because of the greater reliance of this market on leasing in the
sales of machines.
Demand for the Oce CPS800 and Oce CPS900 color printers remains high, and
production capacity for these printers has recently been increased. Black-and-
white printers are also subject to continuing strong demand. In addition, the
specific marketing campaigns to increase the installed base of machines at
customers, with the aim of generating higher print volumes, are proving
successful. The increasing sales of printers and the intensified marketing
campaigns in DDS, will lead to rising revenues from service contracts, and as
a result to a positive operating income.

Revenues in Wide Format Printing Systems (WFPS) were euro 207.0 million
(2004: euro 204.4 million).
Sales of printing systems increased by 6.0% on an organic basis.
Recurring revenues increased as a result of higher service revenues and a
strong growth in demand for color toners and inks.
The operating income of WFPS increased to euro 18.0 million (2004: euro
13.0 million).
The result of WFPS is a good one by any standards. Through the leadership
position on the world market, WFPS is able to gain full benefit from the
increasing demand for color printers. The fact that the installed base of
color printers is now steadily increasing means that sales of color toners and
inks are also rising.
The good sales performance and the higher recurring revenues enabled WFPS
to more than compensate for the lower lease revenues.

Results nine months 2005
Revenues amounted to euro 1,912.8 million.
Revenues corrected for the sale of leases increased by 1.7% on an organic
basis, while exchange rate effects caused a reduction of 1.3%. Sales of
machines rose by 12.3% on an organic basis.
Because of the order book position at the beginning of the fourth quarter,
we expect that the growth in printing system sales will continue.
Book profit on the sale of the lease portfolio was euro 3.2 million (2004:
euro 20.8 million).
Interest income from leases declined by euro 28.6 million.
Recurring revenues excluding lease declined by 1.9% on an organic basis.

The gross margin was 40.3% (2004: 41.9%). Of the decline compared with
2004, 0.4% was caused by hedging transaction results and 1.4% by the sale of
the lease portfolio. Volume-mix effects increased the gross margin by 0.2%.

Operating income was euro 42.1 million (2004: euro 81.3 million).

Net income was euro 28.6 million (2004: euro 52.7 million).
Per ordinary share outstanding the net income was euro 0.32 (2004: euro
0.60).

Acquisition of Imagistics International Inc.
On September 16, 2005 Oce announced its intention to make a cash tender
offer for the common stock of Imagistics International Inc.
This offer will expire on October 17, 2005.
Imagistics International Inc. is a supplier of document imaging solutions
in the USA, Canada and the UK, with revenues of USD 609 million in 2004.
The acquisition will mean a major increase in the distribution power of
Oce, especially in the US.
The product ranges of Imagistics International Inc. and Oce are
complementary, which will allow significant synergy effects to be achieved.
Through this acquisition, Oce will be in an even better position to offer
its customers a complete range of products.

Outsourcing of lease activities
The value of the existing lease contracts sold to lease partners during
the past nine months is euro 48.8 million. The book profit on the sale was
euro 3.2 million (2004: euro 20.8 million).
The total value of leases on the balance sheet at the end of the third
quarter was euro 347.7 million.
The sale of leases will be accelerated in connection with the planned
acquisition of Imagistics International Inc.

Commercial versus financial results

Third quarter
In million euro 2005 2004

Commercial activities
Revenues 640.8 630.0
Operating income 9.5 6.6*
Profit on sale of
lease contracts 0.4 8.1
Operating income (excl.
sale of lease contracts 9.1 -1.5*

Financial activities
Revenues 8.8 15.7
Operating income 4.1 10.0

* After impairment costs of euro 7.3 million.

Balance sheet and cash flow
The balance sheet total at the end of the third quarter was euro 2,039
million.
This is a decline of euro 233 million compared with the third quarter of
2004 (euro 2,272 million).
The decline was to a significant effect due to lower lease receivables and
to the fact that a part of the cash on the balance sheet was used for the
repayment of loans (euro 92 million).
The free cash flow in the first nine months amounted to euro 12.6 million.

Interim dividend
An interim dividend of euro 0.15 per ordinary share will be paid for the
financial year 2005. The ex-dividend date is October 10, 2005. The interim
dividend will be paid entirely in cash, and will be payable from October 26,
2005.

Prospects
The third quarter shows a clear improvement in the trend of revenues from
service contracts. Sales of printing systems were good.
Both the revenues from service contracts and the sales of printing systems
are expected to remain at a good level in the fourth quarter.
In view of these developments, we expect the operating income from
commercial activities for 2005, excluding book profit from the sale of the
lease portfolio, to increase by approximately 20% compared with 2004 (to euro
38 million).

Oce N.V.
October 7, 2005

The full report can be downloaded at the international website
http://www.oce.com/en/Investor/QR/2005-Q3.htm

About Oce
Oce is a leading provider of digital document management technology and
services. The company's solutions are based on Oce's advanced software
applications that deliver documents and data over internal networks and the
Internet to printing devices and archives -- locally and around the world.
Supporting the workflow solutions are Oce digital printers and scanners,
considered the most reliable and productive in the world. Oce also offers a
wide range of display graphics, consulting and outsourcing solutions.
Netherlands-based Oce N.V. (Nasdaq: OCENY), with a workforce of around
21,500 people and 2004 revenues of $3.3 billion, maintains research and
manufacturing centers in the Netherlands, the United States, Germany, France,
Belgium, the Czech Republic, and Japan. Oce's North American headquarters is
located in Chicago with major business units in Chicago; New York City; Boca
Raton, FL; Salt Lake City; Coventry, RI; and Vancouver, BC. North American
revenues were $1.2 billion for fiscal 2004, and employment is currently 8,100.
For more information about Oce, visit http://www.oceusa.com . Outside the
U.S., consult http://www.oce.com .