DGAP-Adhoc: Balda AG: Balda AG gets into touch-screen production

14.07.2006

Balda AG / Key word(s): Joint Venture/Joint Venture

14.07.2006 09:22

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted

by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

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Bad Oeynhausen – Balda AG acquires via Balda Investments Singa-pore (BIS) a

50 per cent stake in the TPK Holding (TPK). TPK pro-duces Touch-Screen

solutions. The production sites of TPK are lo-cated in Xiamen in China and

development takes place in the devel-opment centre in Taiwan. The family of

Michael Chiang, the CEO Asia of Balda AG, will be the Joint-Venture

partner.

In a first step the Chiang family acquires 15 per cent of the shares of

BIS. The purchase price was agreed with 11 million Euros.

As a countermove BIS will acquire 50 per cent of the shares of TPK. With it

the Chiang family will get another 25 per cent of the BIS shares via a

share swap (contribution in kind). Additionally BIS pays 59.25 million

Euros in the frame of these transactions, whereof 40 million Euros will

flow into TPK as a capital injection.

Balda expects for 2007 proportionate revenues of 300 to 350 million Euros

from the participation in TPK, which was founded in 2005 and whose

production volumes will strongly increase at the beginning of the fourth

quarter. The proportionate profit out of this will reach 30 to 35 million

Euros.

On top of it, with these new technologies far reaching synergies and

revenue potentials come up for the Balda group in the core market Infocom

as well as in new markets.

To finance this acquisition and the further growth Balda issues an op-tion

bond of 80 million Euros as a private placement. The bond covers conversion

rights for 4 million shares. The conversion price amounts to 9.85 Euros,

while the interest rate lies at 4.95 per cent with a term of 5 years.

With this acquisition Balda follows its defined strategy to strengthen the

existing plastics business and to increase the value added with investing

in new technologies, thus better penetrating the core market of Infocom and

reaching new markets.

Considering the figures received so far Balda assumes that the sec-ond

quarter fell behind the budget in revenues as well as in earnings. Based on

the actual forecasts Balda still confirms the communicated target of

revenues of 450 to 460 million Euros with a pre-tax profit (EBT) of 46 to

48 million Euros.

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Information and Explaination of the Issuer to this News:

Balda AG is one of the leading system suppliers of high performance plastic

components for the mobile-phone industry. In addition to pro-duction its

portfolio of services includes development and production of tools, surface

finishing and components assembly.

The TPK Holding was founded in 2005. The group with its touch-screen

production concentrates on displays with a size of 2 to 8 inch. These are

used particularly in the area of handheld devices, PDA’s and mobile phones.

TPK nevertheless is able to produce touch dis-plays up to a size of 42

inch.

Central point of the production is the manufacturing of so called ‘touch

panels’, using different self developed or further developed processes. In

the next production step these panels, which contain the touch sen-sitivity

to control the devices, are connected to the LCD-displays. If required by

the customer the completed displays are further assem-bled, e.g. to

housings produced by Balda.

The customers of TPK come from the markets for Personal Portable Devices,

Public Information Systems, Telecom Systems, Office Auto-mation Systems and

Consumer Electronics.

The founder family of TPK has up to 30 years of experience in the

development and production of high-value electronic components, especially

of monitors for the computer industry.

If you have any questions, please contact us: Invitation to our phone

conference at 11:00 a.m. local German time. The power point charts will be

available directly on our website. Please call in at least 10 min-utes

before the conference begins: +49(0)69/9897 2633. Balda AG, Cersten

Hellmich and Kathrin Wiederrich (Investor Relations), Phone: +49 (0) 5734

922-2706 / 2751, E-Mail chellmich@balda.de, kwieder-rich@balda.de,

Internet: www.balda.de. We also invite you to our ana-lysts’ conference on

next Thursday, 20th of July in Frankfurt. Details are following.

14.07.2006 DGAP’s Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English

Company: Balda AG

Bergkirchener Str. 228

32549 Bad Oeynhausen

Germany

Phone: +49 (0) 57 34 / 9 22-0

Fax: +49 (0) 57 34 / 9 22-2604

E-mail: info@Balda.de

Internet: www.balda.de

ISIN: DE0005215107

WKN: 521510

Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr

in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of Announcement DGAP News-Service

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