DGAP-Adhoc: Balda AG signals confidence in the second half of 2008

29.07.2008

Balda AG / Key word(s): AGM/EGM

29.07.2008 19:53

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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– Annual general meeting elects new supervisory board members

– Shareholders disapprove the expansion of existing authorisation of the

share capital

– New financing structure: preliminary agreement about milestones for a

stable financing structure

Bad Oeynhausen / Bielefeld – The annual general meeting of Balda AG, listed

in the Prime Standard Segment of the German Stock Exchange, has voted for a

new supervisory board, reduced to three members. After the resignation of

all Supervisory Board members, except the Chairman Richard Roy, new

elections became necessary. About 400 shareholders voted for Dr. Manfred

Puffer und Michael Sienkiewicz as new supervisory board members. About 60.9

percent of the authorised capital was present at the 9th annual general

meeting in Bielefeld.

The Board of Directors expect an upturn of business activities in the

second part of 2008 compared to the first half of the business year. In

addition, the Board of Directors reported, that with regards to the new

financing structure, milestones for a stable financing have been agreed

upon with the banks. A formal closure of this agreement will be expected

for August 2008.

The annual general meeting met controversial decisions and did not follow

several proposals of the management. The Board of Directors and the

Chairman of the Supervisory Board were not approved of their actions taken

in 2007. On the other hand, the shareholders did exonerate the other

members of the supervisory board, having resigned.

The shareholders voted for the authorisation to purchase and to sell own

shares. In contrast, the annual general meeting denied the expansion of the

existing authorisation to increase the share capital until including July

2013 by issuing shares of up to around 27 million euros.

In addition, the shareholders voted against the issuance of convertible

bonds and bonds with warrants and the creation of conditional capital

amounting to about 3.4 million euros.

The chairman of the annual general meeting presented the new supervisory

board as experienced managers. At present, Dr. Puffer is responsible for

the business in Germany, Austria and Eastern Europe of JP Morgan Chase /

Bear Stearns International London. He also belongs to the supervisory board

of the Austrian ‘Bundesfinanzagentur’. Puffer formerly was active in

leading positions for WestLB, Kirch-Group, Hypovereinsbank AG and Goldman

Sachs. Sienkiewicz is a versed business consultant from San Francisco with

extensive management experience in the telecommunication industry.

* * *

Company profile Balda AG

The internationally operating Balda Group develops and produces highly

integrated devices comprising plastic, metal and electronic components as

well as touch sensors. Among the customers of the Prime Standard listed

company are international brand-names from the mobile telephony industry,

medical technology and various related markets.

The integration of plastic and touch screen technologies creates completely

new customer benefits. Only Balda currently offers both technologies from

one source on a global scale. The group has a strong position in the

important growth markets China and India and owns four production

facilities in the region. Plants in Brazil and in Malaysia, as well as the

facility in Germany for Balda Medical, underline the global competitiveness

of the group of companies.

* * *

This ad hoc-announcement includes ‘forward-looking statements’ which are

based on the current expectations of the management of Balda. They are

subject to risks and uncertainty because they relate to events and depend

on circumstances that will occur in the future, such as, for example,

developments in the mobile communications industry, changes in technology

and the ability to timely and successfully develop new products and various

other factors. Balda does not undertake any obligation to update publicly

or revise forward-looking statements except to the extent legally required.

This ad hoc-announcement is not an offer of securities for sale or a

solicitation of an offer to purchase securities in the United States or

elsewhere. The shares in Balda AG (the ‘Shares’) may not be offered or sold

in the United States or to or for the account or benefit of U.S. persons

(as such term is defined in Regulation S under the U.S. Securities Act of

1933, as amended (the ‘Securities Act’)) unless registered under the

Securities Act or pursuant to an exemption from such registration. The

Shares have not been and will not be registered under the Securities

Act.

If you have any questions please contact: Balda AG, Clas Röhl, Phone: +49

5734 922 2728, Fax: +49 5734 922 2691, Mail: croehl@balda.de, Internet:

www.balda.de

29.07.2008 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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