EANS-Adhoc: Balda AG: Operative results in the first half of 2011 positive / MobileCom segment part of the discontinued business division

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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04.08.2011

Balda AG: Operative results in the first half of 2011 positive /
MobileCom segment part of the discontinued business division

• MobileCom segment: Intensified search for a Joint Venture partner /
shareholding already declared as a discontinued business division
• Sales revenues in the first half of the year in continued business
divisions grow by 0.8 million Euros to 28.9 million Euros (same period in
the previous year: 28.1 million Euros)
• Operating profit (EBIT) increases by 0.5 million Euros to 1.1 million
Euros (same period in the previous year: 0.6 million Euros)
• Pre-tax profits (EBT) rise by 1.5 million Euros thanks to positive
financial earnings, taking them to 10.4 million Euros (same period in the
previous year: 8.9 million Euros)

Bad Oeynhausen, 4th August 2011 - The company management of Balda AG, listed on
the Frankfurt Stock Exchange SDax index, firms up its decision from the first

half year to seek a strong Joint Venture partner. Despite repeated
restructuring attempts, it was not possible for the segment to
achieve the desired results in the volatile and highly competitive
mobile telephone market. The MobileCom segment is already included in
the discontinued business division in the half yearly report for 2011
because it is assumed that the control of the shares will not remain
with Balda.

Business development The Balda Group generated sales of 28.9 million
Euros in the first half of 2011 in continued operations, compared to
28.1 million Euros in the same period during the previous year. This
is an increase of 0.8 million Euros or 2.8 percent in comparison to
the first six months of 2010. The operating profit for the Group rose
at the end of the first half year to 1.1 million Euros in comparison
with a figure of 0.6 million Euros in the same period during the
previous year.

The Balda Group achieved positive financial earnings of 9.3 million
Euros in the first half of 2011 following on from 8.2 million Euros
in the previous year. The increase was a result of a decrease in
interest payments due to the elimination of convertible participation
rights, and moreover of currency gains amounting to 9.1 million Euros
arising from internal financing.

The profits before tax (EBT) increased as a result of the positive
financial results to 10.4 million Euros (previous year: 8.9 million
Euros). The half yearly surplus in 2011 in the continued business
divisions was 10.2 million Euros (previous year: 9.2 million Euros).

Overall, the Balda Group recorded a consolidated loss after the first
six months of the current financial year - continued and discontinued
business divisions - of 15.4 million Euros compared to a profit of
5.1 million Euros in the same period of the previous year. The loss
in the first half year for the discontinued business division stood
at 25.6 million Euros (previous year: Minus 4.1 million Euros). This
includes special accounting devaluations for the companies in the
MobileCom segment amounting to 19.9 million Euros and the loss
resulting from operative business in the first half year amounting to
4.2 million Euros, as well as payments totalling 1.5 million Euros as
a result of interest and tax dues.

The undiluted profit per share during the reporting period was minus
26.1 cents, on the basis of 58,891 million shares (status 30th June
2011). In the same period during the previous year the earnings per
share based on 54,157 million shares were 9.9 cents.

Positive development of operational Group segments The positive
commercial development of the continued business divisions,
Electronic Products and Medical, during the first half of 2011
confirms Balda´s chosen strategy. During the second quarter of 2011
the sales rose slightly, to 15.5 million Euros following on from 13.4
million Euros in the first quarter. In light of the effects of the
disaster in Japan, which are only now being felt by the Group, this
is a satisfactory development.

The sales in the Electronic Products segment declined from 14.9
million Euros during the first half of 2010 to 12.5 million Euros in
the same period of 2011. The cause of this development was the
faltering supply of electronic components as a result of the natural
disaster in Japan. However, despite the drop in sales, the segment
succeeded in reducing the operating losses by 1.0 million Euros to
1.5 million Euros (previous year: Minus 2.5 million Euros). Strict
cost management and targeted improvements in production processes led
to this improvement in results.

The Medical segment recorded sales of 16.5 million Euros, and thereby
a significant increase in comparison to the previous year's figure of
13.1 million Euros. The operating profit for the segment stood at 1.3
million Euros after the first six months (previous year: 1.1 million
Euros). The Medical division is on target.

Liquid funds reducing On the 30th June 2011 the Balda Group´s
inventory of liquid funds stood at around 42.3 million Euros (first
half year of 2010: 49.4 million Euros). In the continued business
divisions the liquid funds stood at 36.4 million Euros because 5.9
million Euros were reapportioned on the reporting date from the
liquid funds item to Assets held for sale and liabilities.

Significant rise in operating cash flow The cause for the positive
operating cash flow development was primarily the reduction in Net
Working Capital (current assets excluding liquid funds less current
liabilities excluding bank liabilities). In total, the inflow of
funds from the ongoing business activities of the Balda Group rose
during the first half of 2011 to 7.7 million Euros. In the previous
year the cash flow stood at minus 6.1 million Euros.

Equity increased The Group´s equity increased by 99.2 million Euros
to 849.0 million Euros (reference date 2010: 749.7 million Euros).
The revaluation of the TPK shares on the 30th June 2011
overcompensated for the negative effect due to exchange rate
discrepancies and the negative Group result. The equity ratio on the
30th June 2011 stood at 94.1 percent (31st December 2010: 92.5
percent).

No sale yet of TPK shares According to the regulations of the
Taiwanese Stock Exchange, the sale of 50 percent of the shares held
in TPK would have been permissible on the 13th July 2011, following
the expiration of the holding period. Due to the recent volatile
market conditions, with severe stock price fluctuations, Balda has
not issued any sale order to date. However, the company continues to
coordinate closely with banks, consultants and TPK regarding selling
the TPK shares.

Acquisition
With regards to the planned acquisition in the medical segment, the
prerequisites for a potential takeover are now in place.

Outlook for 2011 For the financial year 2011 the Board of Directors
is forecasting sales revenues of between 70 and 80 million Euros and
a slightly positive operating profit (EBIT).

* * *

Company profile of Balda AG

The Balda Group develops and produces complete plastic assemblies,
electronic products and products for the medical technology industry.
Balda´s customers are leading companies in the mobile phone, consumer
electronics, electronic communications, pharmaceutical and medical
technology markets. The Group is internationally positioned with
production sites in China, Malaysia and Germany. A subsidiary in the
USA serves North American customers in product design and
development. Within the scope of its shareholding in a leading
touchscreen manufacturer in China, Balda is participating in the
dynamic development of the touchscreen displays market.

* * *

Contact: Balda AG, Clas Röhl, Telephone: (05734) 922 - 2728, Fax:
(05734) 922 - 2604, E-mail: croehl@balda.de, Internet: www.balda.de

* * *

This ad-hoc 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 ad-hoc 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:
Contact: Balda AG, Clas Röhl, Telephone: (05734) 922 - 2728, Fax: (05734) 922
- 2604, E-mail: croehl@balda.de, Internet: www.balda.de

end of announcement euro adhoc
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issuer: 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: http://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