EANS-News: Balda AG / Balda with balanced operating income for first quarter 2012/2013

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Bad Oeynhausen (euro adhoc) – PRESS RELEASE

Balda with balanced operating income for first quarter 2012/2013

* Consolidated earnings after taxes of EUR6.8 million thanks to positive
financial result
* Medical segment partially catches up on order delays from previous year
* Electronic Products segment largely completes restructuring, but feels impact
of weaker global economy
* Consolidated revenues at EUR13.9 million 10% under value in the reference
* Targets for full year 2012/2013 unchanged

Bad Oeynhausen 5 November 2012 – Thanks to stabilized operations and a positive
financial result, Balda AG closed the first quarter of financial year 2012/2013
(1 July to 30 June) with consolidated earnings after taxes of EUR6.8 million.
Overall, the manufacturer of high quality plastic products for the medical and
electronics industry showed business development in line with its expectations.
The Medical segment, based in Bad Oeynhausen, was able to recover a portion of
the revenues orders that had been delayed in the short financial year 2012 (1
January to 30 June 2012), and again clearly operated in the black. In the
Electronic Products segment, based in Malaysia, the adjustment of cost
structures to decreased business volumes and the improvement of margins had a
positive effect.

Dominik Müser, Chief Executive Officer (CEO) of Balda AG: ‘The restructuring and
refocusing of Balda towards profitable growth is still on track. At Balda
Medical we are currently in advanced acquisition negotiations in the context of
the agreed buy-and-build strategy for this segment. Our Electronics division has
indeed almost completed its restructuring, but suffers from the demand decrease
in the wake of the global economic slowdown. Here we must keep a close eye on
further developments.’

Revenues and earnings figures Balda Group Q1 2012/2013
* Consolidated revenues in the first three months of 2012/2013 were EUR13.9
million, 10.0% below the figure of the third quarter of calendar year 2011
(EUR15.4 million). The decrease is attributable to the development in the
Electronic Products segment, in which, due to the economic situation, demand
remained under expectations in the report quarter. On the other hand, revenues
of Balda Medical increased slightly.

* Consolidated earnings before interest, taxes, depreciation and amortization
(EBITDA) improved to EUR0.9 million (reference period: minus EUR0.1 million).
After consideration of depreciations and amortizations, the first quarter showed
balanced earnings before interest and taxes (EBIT), after a negative EBIT of
EUR1.0 million in the reference period 2011.

* The financial result reached EUR6.6 million (reference period: minus EUR3.7
million). Interest income deriving from the high liquidity position of the Group
had an effect. Liquidity was attributable to the almost complete sale of the
minority stake in the touchscreen manufacturer TPK Holding in the short
financial year 2012. Above all, positive effects resulted from the conversion of
foreign currency items.

* Earnings from continued operations (earnings after taxes) improved to EUR6.8
million after minus EUR3.7 million in the period July to September 2011.

* Group result also amounted to EUR6.8 million. The value of the reference
period (minus EUR13.1 million) includes earnings from the discontinued segment
MobileCom, which had been sold on 1 December 2011. The quarterly result
represents earnings per share of EUR0.12 (reference period: minus EUR0.22).

Development of segments
* Revenues in the Medical segment rose in the first quarter 2012/2013 by 2.0% to
EUR8.1 million (reference period: EUR7.9 million). Balda Medical was able to
recover part of the orders that had been delayed by customers in the short
financial year, thus decreasing stocks and, overall, operating once again
clearly in the black. The EBITDA was at EUR1.1 million (reference period: EUR0.8

* The Electronic Products segment reported quarterly revenues of EUR5.8 million.
With a sharp decline of 22.6% versus the reference period (EUR7.5 million) the
commencing general economic downturn made its mark, leading to a demand below
expectations in the report quarter. Nonetheless Electronic Products managed to
keep its EBITDA stable at EUR0.3 million due to efficiency increases,
cost-cutting and margin improvements.

* In the Central Services segment, which mainly comprises the holding activities
of Balda AG, the streamlining of corporate structures and savings in other costs
(e.g. use of service providers) led, in the first three months of 2012/2013, to
an improvement in the EBITDA to minus EUR0.4 million compared to minus EUR1.4
million in the same period in 2011.

Outlook full year 2012/2013
The primary objective of the Board is unchanged: to focus the Balda Group on
consistent, profitable growth and value creation. To this end, business volume
shall be brought to a volume of EUR150 to 200 million in the medium-term, with
an operating margin (related to the EBITDA) of at least 15% to be realised.

In the Medical segment, Balda is currently at an advanced stage in negotiations
with several potential acquisition candidates in North America and Western
Europe. The Board is confident that these negotiations will lead to first
results soon.

The buy and build strategy of the segment aims first on stronger
internationalization, in order to meet the requirements of existing customers
and attract new ones. Secondly the performance spectrum is to be broadened by
opening up attractive new segments of the healthcare market.

In the Electronic Products segment, after restructuring is complete, strategic
repositioning in promising niche markets in the entertainment and communication
electronics sector will be in the foreground. This must, however, take place in
a globally increasingly challenging economic environment. In the course of the
financial year 2012/2013 thus far, Balda Electronic Products has sensed a clear
reticence on the part of customers in their ordering behaviour. As previously
announced, the Board will decide based on the results of the second quarter of
financial year 2012/2013 on the next steps in the segment.

For the Balda Group the Board maintains the objectives for the full year
2012/2013. Insofar as the overall economic framework conditions, particularly
for the Electronic Products segment, do not continue to worsen, the Board will
continue to strive on the current portfolio basis, that is without acquisitions
or divestments, toward
* consolidated earnings approximately at the level of financial year 2011
* with an approximately balanced group EBIT.

Consolidated earnings before and after taxes will be positively affected by
interest income, so positive values may be expected.

Note to Editors:
The consolidated financial statements of Balda AG at 30 September 2012 can be
found on the Company’s website at www.balda.de.{http://www.balda.de/}[HYPERLINK:

For the Balda Group at a glance please follow this link:

Further inquiry note:
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 – 54 04 – 91 92 0
Fax: +49 – 54 04 – 91 92 29

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: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English