DGAP-News: ABalda AG:

10.01.2008

Balda AG / Key word(s): Letter of Intent

10.01.2008 18:03

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Bad Oeynhausen/Munich, January 10, 2008. With a view to various press

articles in recent days Balda AG, KS Plastic Solutions GmbH and AURELIUS AG

state the following: Balda Solutions Deutschland GmbH and Balda Werkzeugbau

GmbH, both domiciled in Bad Oeynhausen (North Rhine-Westphalia), as well as

Balda Solutions Hungaria Kft. in Veszprem/Hungary, have been sold to KS

Plastic Solutions GmbH with effect from December 31, 2007. The negotiations

have been concluded and the transfer of the companies to the purchaser KS

Plastic Solutions was completed on December 31, 2007. All the contingent

contractual conditions have been fulfilled and there are no rights of

withdrawal on the part of either the buyer or the seller. With the

exception of the agreements reached in the framework of the purchase

contract there are no other obligations on the part of Balda AG, nor have

any such claims been asserted by the buyer.

The management of Balda Solutions Deutschland GmbH is currently negotiating

with the Works Council and labor unions on a social compensation plan so as

to adjust the company to the new order situation arising from the loss of

major clients in recent years. Under the prerequisite that these talks may

be completed and arrive at an economically viable conclusion and thus a

profitable business plan may be drawn up, an investor consortium headed by

AURELIUS AG, Munich intends to take over the Balda Solutions Group from KS

Plastic Solutions.

* * *

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.

* * *

This press 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 press 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.

10.01.2008 Dissemination of a Corporate News, transmitted by DGAP –

a company of EquityStory AG.

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

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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