DGAP-News: Balda AG: Balda increases focus on the Asian growth regions and on the Touch segment

28.09.2007

Balda AG / Key word(s): Strategic Company Decision

28.09.2007 10:03

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Balda increases focus on the Asian growth regions and on the Touch segment

– Managing Board pushes ahead with restructuring of the high-tech company

– Balda Medical is developing better than planned and remains an important

part of the Balda Group

– Sale of remaining European business possibly in 2007, potential buyers

already displaying interest

– growth expectations for the continued operations remain positive for

2008

Bad Oeynhausen, September 28, 2007 – Looking ahead Balda AG will focus to

an even greater degree on the growth regions in Asia and on the Touch

segment. ‘The future of our technology-driven company lies in Asia. The

important mobile telephone manufacturers produce there, and we are

excellently positioned there – and above all in combination with the Touch

segment,’ said Joachim Gut, the Chairman of the Managing Board, in Bad

Oeynhausen. The Balda Group will concentrate to an even greater degree on

these profitable growth markets in the future.

Balda Solutions Europe is also seeing a positive trend for 2007, yet is

increasingly focusing on markets which are not part of Balda’s core

business. For this reason these activities are to be sold in the course of

the current year where possible. The objective is that of selling to an

entrepreneurial investor, who will utilize the existing capacities. Balda

Medical is developing better than planned and remains an important part of

the group. The continued operations are profitable in 2007 and are also set

for growth in 2008.

Balda Solutions Europe currently manufactures in Germany with some 500

employees of its own; in Hungary the company employs approximately 150

employees of its own and some 250 staff through temporary employment

agencies. As initial exploratory talks have revealed, there is major

interest in the qualified employees and the existing know-how. ‘We intend

to conduct the sale swiftly yet not too hastily,’ said Gut. In the course

of the planned sale of the remaining European business there will be

structural changes in the holding company. This will lead to cost savings

from 2008 onwards.

Balda Medical is developing better than planned and will clearly surpass

the sales target of 25 million euros in 2007. For the discontinued

operations a loss is expected in the third and fourth quarters of the

current year. The continued operations will – as planned – attain a

positive pre-tax result (EBT) in the third quarter and for 2007 as a whole.

The positive growth expectations for 2008 are also unchanged.

* * *

Company profile Balda AG

The internationally operating Balda develops and produces highly integrated

devices comprising plastic, metal and electronic compo-nents, among other

things for 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 group has a strong position in the important growth markets China and

India and owns four production facilities in the region. With manufacturing

facilities in Germany, Brazil, Hungary and in the important growth markets

China and India as well as in Malaysia Balda is excellent positioned.

* * *

Notice:

On Friday, September 28, 2007, a conference call will be held on 12:00 noon

(CEST) in German for journalists. Please dial in 10 minutes prior to the

start of the conference, dial-in number is as follows: + 49 69 22 22 22 20.

On 1 p.m. (CEST) on the same day another conference call will be held for

investors and analysts in English. Please dial in 10 minutes prior to the

start of the conference, dial-in number is as follows: +49 68 22 22 22 43.

* * *

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

(0) 5734 922 – 2728, Fax: +49 (0) 5734 922 – 2691, Mail: croehl@balda.de,

Internet: www.balda.de

* * *

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.

28.09.2007 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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