EANS-News: Balda AG: As expected, sluggish start in the first quarter of 2010

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quarterly report/3-month report

Bad Oeynhausen (euro adhoc) - Balda AG: As expected, sluggish start
in the first quarter of 2010

• Sales revenues at 27.5 million euros in the first quarter of 2010 (period
of previous year: 35.5 million euros)

• Strong pricing pressure in the MobileCom business puts a strain on sales
and result situation

• EBIT amounting to minus 2.4 million euros stays within the budgeted scope
(period of previous year: plus 2.5 million euros)

• Quarterly profit of 1.6 million euros (previous year: 2.3 million euros)

• New products on the verge of being launched

• Forecast for 2010 confirmed: two-digit rise in sales of 10 to 15 percent
with an EBIT remaining constant

Bad Oeynhausen, 6 May 2010 - Balda AG, listed on the SDax of the Frankfurt

Stock Exchange, achieved sales revenues amounting to 27.5 million
euros in its continued operations in the first quarter of 2010,
compared to 35.5 million euros in the period of the previous year.
The strong pricing pressure prevailing in the MobileCom business as
well as delayed commencements of production were the pivotal causes
for the decline by 8.0 million euros, or 22.5 percent. The sales
revenues are within the company´s planning for the first quarter of
2010.

Heterogeneous development of the segments The segment China achieved
sales revenues amounting to 14.2 million euros in the reporting
period, compared to 21.9 million euros in the previous year. The drop
by 7.5 million euros, or 34.3 percent, is essentially due to two
reasons. For one, a customer postponed projects until the second half
of the year; secondly, the pricing pressure has considerably
increased in the MobileCom segment owing to the intense competition.
To be well prepared for the future demands of customers, Balda
continued to invest in the expansion of the Beijing production
location during the first quarter. With the completion of the first
construction phase of the new plant as of the middle of the year, the
segment China still expects a two-digit growth. The serial production
of two new mobile telephones has begun in March. Given the fact that
fixed costs stayed almost the same, the operative result (EBIT)
slackened by 3.8 million euros and reached a barely positive result
in the first quarter of 2010.

The Malaysian segment closed the first quarter of 2010 with a plus in
sales revenues of 0.5 million euros, or 10 percent, at 5.5 million
euros (previous year: 5.0 million euros). The company was able to
gain new customers and projects. The production of four innovative
electronic products for brand customers selling mobile phone
accessories worldwide commenced at the turn of the year. This
includes the "portable media player," a "tablet format" device that
is controlled by touch screen. The EBIT of Balda Malaysia stood at
minus 1.7 million euros in the first three months of 2010. Expensive
components that have to be purchased led to higher material usage
ratios in the reporting period. The Malaysia segment is likely to
reach the break-even point in the second quarter of 2010 already.

In the first quarter of the ongoing financial year Balda India
registered sales revenues amounting to 1.5 million euros (previous
year: 0.9 million euros). The EBIT of the subsidiary on the
subcontinent added up to minus 0.2 million euros (first quarter 2009:
minus 0.4 million euros).

The Germany segment, with Balda Medical, achieved sales revenues
amounting to 6.2 million euros in the first quarter of 2010 (previous
year: 7.6 million euros). The ongoing financial year is
characterised, among other things, by design and engineering work for
substantial projects that will boost turnover only in 2011. Despite
the decline in sales and the low-margin advance activities for future
projects, Balda Medical achieved a positive EBIT amounting to 0.4
million euros (previous year: 1.0 million euros).

Operational result slides into the red Given the fact that
expenditures were at the same level as they were in the previous
year, the decline in sales for the segments of Balda Group was
clearly reflected in the operational result in the first three months
of the ongoing financial year. The company recorded an EBIT of minus
2.4 million euros in its continued operations (previous year: plus
2.5 million euros) and moved within the scope that had been budgeted.
The financial result of the Group was reduced to minus 1.0 million
euros in the first quarter of 2010 (previous year: minus 2.1 million
euros). The net interest income in the first three months of 2010
stood at 1.1 million euros below the value of the previous year. The
earnings from associated companies, amounting to 5.3 million euros,
also encompass, alongside the profit share from the operational
result, the book profits from the disposal of the additional 1.625
percent of TPK shares, amounting to 4.5 million euros.

Positive EBT and quarterly profit The EBT of the continued operations
were listed at 1.9 million euros in the first quarter 2010. The EBT
added up to 3.0 million euros in the previous year.

Balda Group wound up the first quarter of 2010 in the continued
operations with a quarterly surplus of 1.6 million euros (period of
the previous year: 2.3 million euros). The Group´s discontinued
operations achieved a slightly negative quarterly result amounting to
0.1 million euros, following plus 2.5 million euros in the previous
year.

Altogether, the specialist for mobile telephone equipment, electronic
products and medical technology posted a quarterly profit of 1.5
million euros in the first three months of the ongoing financial year
(period of the previous year: 4.8 million euros).

Equity has increased The Balda Group´s equity has risen from 159.2
million euros as of 31 December 2009 to 173.3 million euros as of the
closing date of the reporting period. The high equity ratio stood at
65.1 percent as of the close of the reporting period (previous year:
63.6 percent). The cash and cash equivalents improved to 49.2 million
euros (31 December 2009: 44.2 million euros). The company has
comfortable funding at its disposal.

Despite the subdued business growth in the first quarter of 2010, the
company still expects a rise in the Group´s sales of 10 to 15 percent
with an EBIT remaining constant for the ongoing financial year,
compared to 2009.

* * *

Key Figures Balda Group Q1 2010 / Q1 2009 (Continued operations)

in million euros

| |Q1 / 2010 |Q1 / 2009 |Change in |
| | |(3) |percent |
| | | | |
|Revenues |27.5 |35.5 |-22.5 |
| |China |14.2 |21.9 |-35.2 |
| |Malaysia |5.5 |5.0 |10.0 |
| |India |1.5 |0.9 |66.7 |
| |Germany |6.2 |7.6 |-18.4 |
|Total operating|30.3 |37.6 |-19.4 |
|performance | | | |
|EBITDA |0.4 |6.0 |-93.3 |
|Operational |-2.4 |2.5 |-196 |
|result (EBIT) | | | |
|EBIT margin (in|-8.1 |6.7 | |
|%) | | | |
|Earnings before|1.9 |3.0 |-36.7 |
|taxes (EBT) | | | |
|Quarterly |1.6 |2.3 |-30.4 |
|result | | | |
|Quarterly |1.5 |4.8 |-68.8 |
|result | | | |
|including | | | |
|discontinued | | | |
|operations | | | |
|Earnings per |3.0 |9.2 |-67.4 |
|share (in | | | |
|eurocent) (1) | | | |
|Employees (2) |5,346 |5,032 |6.2 |

(1) Number of shares at the cut-off date in million 54.157 (at cut-off date of
the previous year: 54,157)

(2) Number of employees including agency workers, trainees and temporary
workers - continued operations

(3) Including Balda Medical GmbH & Co. KG and Balda
Grundstücksvermietungsgesellschaft mbH

* * *

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,
India 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.

* * *

This corporate news 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 corporate news 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.

end of announcement euro adhoc
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ots Originaltext: Balda AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Clas Röhl

Tel.: +49 (0) 5734 922-2728

croehl@balda.de

Branche: Semiconductors & active components
ISIN: DE0005215107
WKN: 521510
Index: CDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
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