DGAP-Ad-hoc: Balda AG:

22.04.2008

Balda AG / Key word(s): Final Results

22.04.2008 07:35

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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Balda confirms expectations for 2008,

continued operations on target for 2007

– Sales at continued operations 257.4 million euros in 2007 (+ 64

percent)

– EBIT at continued operations 8.5 million euros in 2007, EBT minus 3.2

million euros

Bad Oeynhausen, April 22, 2008. The sales revenues of the Balda Group at

the continued operations in 2007 amounted to 257.4 million euros (+ 64

percent). The operating profit (EBIT) here was 8.5 million euros. In 2006

this figure had been minus 17.2 million euros. The pre-tax result (EBT) in

2007 was minus 3.2 million euros (2006: minus 22.6 million euros). This

includes 3.3 million euros in extra depreciation on the real estate in Bad

Oeynhausen. Without this special effect the EBT target for the continued

operations was nearly attained. In 2007 consolidated sales were 309.2

million euros, following on from 370.9 million euros in the previous year.

The discontinued European Infocom activities charged the consolidated EBT

figure with an operative loss of 32.0 million euros as well as with 13.0

million euros value adjustments (asset reductions). In addition to these

total 45.0 million euros a 19.0 million euros burden resulted from profit

and loss transfer agreements. The consolidated EBT totaled minus 68.3

million euros (2006: minus 49.5 million euros). Balda has confirmed the

expectations for 2008. The 2008 annual general meeting is scheduled to be

held on July 29, 2008.

Financial year 2007

The annual financial statements have been audited and certified. They are

to be approved by the Supervisory Board shortly. The figures for 2006 and

2007 are only comparable to a limited degree due to extensive changes in

the reporting entity. The continued operations are stated separately. Here

sales revenues of 257.4 million euros were attained in 2007. The cost of

materials increased to 149.9 million euros (+ 68 percent). The cost of

materials ratio remained virtually unchanged in a year-on-year comparison.

The personnel costs rose to 46.9 million euros in 2007, the personnel costs

ratio however declined from 20.4 percent in the previous year to 17.3

percent. This reflects the rise in the proportion of total sales accounted

for by the less personnel-intensive Touch sector. The depreciation

decreased by 2.5 million euros to 19.8 million euros. The primary reasons

for this were a decline in goodwill depreciation and the reinstatement of

original values in Brazil. At the continued operations Balda was able, on

the whole, to attain a positive operating result (EBIT) of 8.5 million

euros in 2007 (2006: minus 17.2 million euros). The pre-tax result (EBT)

was negative at 3.2 million euros; the pre-tax result adjusted for the

extra real estate depreciation was almost balanced. As of the end of 2007

the group posted after tax results for the year at the continued operations

of minus 8.4 million euros (previous year: minus 15.4 million euros).

Course of business to date in 2008 and outlook

The Medical unit – which is part of Balda alongside the core areas Touch

and Infocom – posted a profit in 2007. In 2008 Medical is to contribute

nearly ten percent to sales. Balda is focusing on the core areas and on the

growth regions in Asia. Medical technology is not a core business and will

be sold. In its core business areas Balda increasingly has a wider

positioning and is thus less dependent on developments with individual

projects. The new orders are associated with pre-production costs, which –

as in the previous year – will impact on the earnings in the first six

months of 2008. Balda’s core business is expected to be profitable in 2008.

As already indicated the first quarter will still be comparatively weak,

however. The company is currently preparing the statements for the first

quarter and will report on the details on May 7, 2008. For 2008 as a whole,

sales revenues of 600 million US dollars are still expected at the

continued operations. The pre-tax profit (EBT) is set to be approximately

35 million US dollars. These figures are based on an exchange rate of 1.45

US dollars per euro.

* * *

Key Figures (Group)

– million euros – 2007 2006 Change (%)

Revenues 309.2 370.9 -16.6

Total operating performance 318.8 377.5 -15.5

Material expenses ratio (%) (1) 52.5 45.4 7.1

Personnel expenses ratio (%) (1) 24.4 31.7 -7.3

EBITDA -19.6 7.5 -361.3

EBIT -55.3 -43.3 -27.7

EBIT margin (%) (1) -17.3 -11.5 -5.8

EBT -68.3 -49.5 -38.0

Net loss -73.3 -42.0 -74.5

Sales yield after interest and taxes (%) -23.8 -10.8 -120.3

Cash flow -13.0 28.1 -146.3

Investments (4) 54.2 38.4 41.1

Shareholders’ equity 150.9 169.9 -11.2

Equity ratio (%) (2) 35.7 38.3 -2.6

Balance sheet total 423.0 443.4 -4.6

Employees (as per 31.12.) 8,023 8,315 -3.5

Earnings per share (euros) (3) -1.35 -1.04 -29.8

End-of-year closing price (euros) 9.10 7.12 27.8

Key Figures (Continued Operations)

– million euros – 2007 2006 Change (%)

Revenues 257.4 157.4 63.5

Total operating performance 271.4 162.6 66.9

Material expenses ratio (%) (1) 55.2 54.9 0.3

Personnel expenses ratio (%) (1) 17.3 20.4 -3.1

EBITDA 28.3 5.0 466.0

EBIT 8.5 -17.2 149.4

EBIT margin (%) (1) 3.1 -10.6 130.7

EBT -3.2 -22.6 85.8

Net loss -8.4 -15.4 45.5

Sales yield after interest and taxes (%) -3.4 -8.5 5.1

Cash flow -11.4 19.3 -159.1

Investments (4) 49.7 31.7 56.8

Employees (as per 31.12.) 7,218 6,131 17.7

Earnings per share (euros) (3) -0.16 -0.38 57.9

(1) in percent of total performance (2) in percent of balance sheet total

(3) related to record day (4) fixed and intangible assets

* * *

Notice:

On Tuesday, April 22, 2008, at 10:00 (CEST) a German language press

conference will be held at the Japan Center, Taunustor 2, in Frankfurt am

Main. Interested parties looking for an opportunity to listen to the press

conference may dial into the meeting. Please dial in approximately 10

minutes prior to the start of the conference, dial in number: + 49 69 22 22

22 22, confirmation code 4560742.

On Tuesday, April 22, 2008, at 12:30 (CEST) an English language investor

and analyst conference will be held at the Japan Center, Taunustor 2, in

Frankfurt am Main. Interested parties looking for an opportunity to listen

to the investor and analyst conference may dial into the meeting. Please

dial in approximately 10 minutes prior to the start of the conference, dial

in number: + 49 69 22 22 22 47, confirmation code 2174273.

* * *

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 SDAX 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.

* * *

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

* * *

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.

22.04.2008 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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