EANS-News: Balda AG / Progress made with the reorganisation of the Group in the first quarter of 2011

Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.

Subtitle: New appointments to management positions / Very solid financial
position allows Balda to finance an acquisition by its own means

Bad Oeynhausen (euro adhoc) – Bad Oeynhausen, 5 May 2011 – The Frankfurt SDax
listed company Balda AG has reorganised its management structure in the first
quarter of 2011 and further improved the Group´s financial position.

Balda AG has established a new management structure in the level below the Board
of Directors in the first quarter and filled key positions. ‘In the areas of
sales, technology and investments, we have appointed global directors for the
MobileCom and Electronic Products segments. Their responsibilities lie on the
one hand in their respective department, but they should also specifically
support the restructuring activities in the segments on the other. With the
appointment of the new management we have registered significant progress in the
two segments,’ stated Balda´s sole board member Rainer Mohr.

Significant improvement in the situation of the segments in Asia
‘MobileCom has significantly improved its cost efficiency. In addition to the
headcount adjustment, effectively managed production processes and further
optimised quality management have contributed towards this. However, we are
still some way from our goal in Beijing. In the Malaysia segment the positive
development in sales is showing the impact of the realigned sales activities.
Visible progress has also been made in the cost situation. Malaysia will and
must show this year that it has prospects for the future as a customer-oriented,
technologically advanced company in the electronic products market segment with
an increase in sales and earnings’, emphasised Mohr.

Balda able to finance an acquisition by its own means
Mohr also referred to the Balda Group´s very solid financial situation. ‘We are
able to finance an acquisition by our own means,’ explained Mohr. He stated that
Balda was not looking for companies which need to be restructured, but for
profitable investments. They should be able to open up further finance

In addition to the instruments open to a public limited company to procure
capital, Balda is in a very solid financial position. Following the measures
taken in the autumn of 2009, Balda AG has no bank liabilities. At segment level,
bank liabilities were comparatively low at 14.4 million euros. The Group´s net
financial liabilities were minus 25.9 million euros compared to minus 23.5
million euros as at the 2010 balance sheet date. The surplus of liquid funds
over interest-bearing liabilities has increased. Net gearing, the ratio of net
financial liabilities to equity, was only minus 3.2 percent at the end of the
first quarter of 2011. Liquid funds as of 31 March 2011 totalled 48.3 million
euros. Mohr also emphasised that the Group´s equity had further increased and
that its financial base was now well above average.

* * *
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

* * *
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