EANS-News: Balda AG / Balda AG sets the course for Group profitability

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Bad Oeynhausen (euro adhoc) – Balda AG sets the course for Group profitability

Balda no longer listing the MobileCom segment in the continued business
divisions / majority shareholding in the MobileCom segment set for takeover by
Joint Venture partner / positive operating profit in the continued business
divisions / sale of the TPK shares yet to commence

Bad Oeynhausen, 4th August 2011 – Balda AG, listed on the Frankfurt Stock
Exchange, is in the midst of a vital decision-making phase. The Sole Director,
Rainer Mohr, announced in a telephone conference in front of the press on the
occasion of the publication of the report for the first half of 2011, that the
‘Balda Group has set the course for a profitable Group structure, although the
process is yet to be completed’.

Profitable operative basis
Balda is assuming that it will lose control of the MobileCom segment within the
framework of its search for a Joint Venture partner. In this way Balda will
eliminate its loss maker in the immediate future. The break-even point had
previously been reached by the Group in the two existing segments comprising
the continued operations, and was exceeded in the first half of 2011 with
consolidated operating Group profits of 1.1 million Euros attained by the
Electronic Products and Medical segments. Mohr is convinced that the Group’s
active operational segments constitute an excellent basis for further growth.
The prerequisites for the establishment of a new Group structure have now been
met, according to the Sole Director.

Planned acquisition
Mohr went further on the intended acquisition: ‘We are on target. The
prerequisites for a possible acquisition are in place. We will be providing
information on further developments promptly.’

Planned sale of TPK shares
With respect to the planned sale of the TPK shares Mohr asserted: ‘Balda AG has
been cooperating on an ongoing basis with banks, consultants and TPK in this
regard. However, we have not yet commenced the issuing of a formal notification
of sale of the TPK shares, as required by the Taiwanese Stock Exchange.’ In
light of the recently volatile market conditions with severe stock price
fluctuations, Balda intends to act to protect the interests of its shareholders
in selling at a favourable share price to preserve value. ‘As a result of this,
a definitive sale date for the TPK shares cannot be specified in the opinion of
the Board of Directors and the Supervisory Board of Balda AG. However, the
management of Balda AG is constantly assessing the market conditions and the
resultant options’ stated Mohr.

In this context, the Board of Directors once again reiterated that the Balda
Group is almost entirely debt-free and, with liquid funds of 42.3 million
Euros, has an above-average solid financial base. ‘We are able to look with
confidence to the future’ emphasised Mohr.

* * *

Company Profile Balda AG
The Balda Group develops and produces complete plastic assemblies, electronic
products and products for the medical industry. The customers of Balda are
leaders in business from the mobile, entertainment and electronic
communications as well as pharmaceutical and medical technology markets. The
group has an international position with product sites in China, Malaysia and
Germany. A subsidiary in the United States serves North American customers in
product design and development. As part of a shareholding in a leading
manufacturer of touch screens in China, Balda participates in the dynamic touch
screen displays market.

* * *

Further inquiry note: Balda AG, Clas Röhl, Tel: (05734) 922 – 2728, Fax:
(05734) 922 – 2604, E-Mail: croehl@balda.de, Internet: www.balda.de

* * *

This corporate news announcement contains forward-looking statements, which are
based on the current expectations of Balda´s management. They therefore contain
a range of risks and uncertainties because they relate to future 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 will neither revise these forward-looking statements nor correct
them in the event of any unexpected development, unless there is a legal
obligation to do so.

This corporate news announcement represents neither an offer to buy shares nor
an invitation to submit an offer to buy shares in the United States or any
other country. The shares in Balda AG (the ‘shares’) may not be offered or sold
in the United States or to or for the account of U.S. persons (as defined in
Regulation S of the U.S. Securities Act of 1933, in its current version (the
‘Securities Act’)), unless they are registered or are exempt from registration
under the Securities Act. The shares have not been and will not be registered
under the Securities Act.

Further inquiry note:
Clas Röhl
Tel.: +49 (0) 5734 922-2728

company: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
mail: info@balda.de
WWW: www.balda.de
sector: Semiconductors & active components
ISIN: DE0005215107
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English