"An initial interim result of the analysis of the data records found is now available. These include photo files relating to the Schumacher family's private life," they said.
Investigations are ongoing, added prosecutors, who did not give further details on the suspects citing privacy laws.
The suspects had threatened to publish the data on the dark web unless they received millions of euros, said prosecutors.
A Schumacher spokesperson declined to comment on the case.
Schumacher has not been seen in public since he suffered a serious brain injury in a skiing accident on a family holiday in the French Alps in December 2013.
Schumacher's family maintain strict privacy about his condition, with access limited to those closest to him.
The local Suedkurier newspaper reported that the suspects are a 53-year-old father and his 30-year-old son, and that the father is a bouncer at a nightclub in the city of Konstanz.
The files are said to show Schumacher after his accident, according to the paper.
(Reporting by Miranda Murray, Editing by Rachel More)

Michael Schumacher of Germany and Mercedes GP reacts in parc ferme after finishing his last F1 race following the Brazilian Formula One Grand Prix at the Autodromo Jose Carlos Pace on November 25, 2012 in Sao Paulo, Brazil. (Photo by Clive Mason/Getty Images)