EANS-News: Balda AG / Balda AG is preparing for payment of a special dividend, an acquisition and a positive EBIT in 2011

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

annual result

Bad Oeynhausen (euro adhoc) - Balda AG is preparing for payment of a
special dividend, an acquisition and a positive EBIT in 2011

Sole board member Rainer Mohr is optimistic about the 2011 financial
year

Bad Oeynhausen, 17 March 2011. Sole board member Rainer Mohr
emphasised that the 2010 financial year had been an up-and-down year
for the Balda Group. The Group did not achieve its goals in terms of
sales or EBIT. However, the holding in the touchscreen manufacturer
TPK has achieved a very high value since its initial public offering
at the end of October 2010. "We are preparing for the payment of a
special dividend from the proceeds of the sale of shares in TPK in
due course," Mohr explained at Balda AG´s Balance Sheet Press
Conference. The sole board member also reaffirmed the intention to
make an acquisition in the Medical segment and his confidence of a
slightly positive EBIT in 2011.

The significant growth in the value of the TPK holding also had a
positive impact on the Group´s annual financial statements. The
negative Group EBIT of 8.7 million euros, and after exceptionals
minus 37.4 million euros, turned into a positive EBT of 93.3 million
euros (previous year: 47.3 million euros). The reason for this is the
revaluation of the TPK holding as a financial instrument, which had a
positive impact in the past financial year of around 125 million
euros on the Group´s earnings statement.

Dividends from proceeds of sale of TPK holding Mohr stressed that
Balda management is currently working intensively on making a
dividend payout possible. This also includes the offsetting in the
2010 balance sheet of the balance sheet loss of 57.7 million euros
with the net profit and an allocation from the release of capital
reserves, which resulted in a balance sheet profit of 184.9 million
euros.

Mohr pointed out that the sale of around 36 million TPK shares is
subject to lock-up periods to the end of April for 50 percent and to
the end of October 2011 for the remaining 50 percent. In order to
guarantee the success of a planned convertible bond by TPK, it is
currently being investigated whether Balda and other shareholders
could support an extension of the lock-up period. Such a package
would also have to be placed carefully on the market to avoid a
negative effect on the price. "The value of Balda´s holding in TPK
was around 650 million euros at the close of the Taiwan Stock
Exchange on 16 March," explained Mohr. The anticipated level of
taxation on the amount to be paid out is currently being examined
thoroughly. As the law stands, Mohr believes that it is possible that
a dividend can be paid out in 2012. "We will do everything to meet
the expectations of our shareholders," stated Mohr.

Optimism for 2011 Mohr is confident about the current financial year
and believes that Balda will solve the difficulties of the
loss-making MobileCom segment. The Electronic Products segment will
return to profit in 2011 and the Medical segment will achieve sales
and profit growth in double figures, he stated. Mohr was also
optimistic about the envisaged acquisition in the Medical segment.
"We are past the phase of exploratory discussions," stressed Balda´s
CEO.

***

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.

end of announcement euro adhoc
--------------------------------------------------------------------------------

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
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade