EANS-Adhoc: Balda AG / Balda AG has conducted itself lawfully with respect to subsidies in China / Company rejects reproaches in the Handelsblatt report

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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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Company Information

29.09.2011

Bad Oeynhausen, 29th September 2011 - Balda AG, listed on the SDax of
the Frankfurt stock exchange, rejects the reproach published by the
Handelsblatt (29th September 2011). According to the report, the
Balda Group´s Chinese subsidiary - BTO - was purported to have
surreptitiously obtained subsidies from the Chinese government. Balda
asserts that: BTO has conducted itself in a correct and lawful
manner. To date, Chinese officials have made no objections
whatsoever. BTO was entitled to the subsidy payments.

In contrast to the claims published by the Handelsblatt, the total
subsidies received in 2010 amounted not to 54 million Renminbi (6.2
million Euros) but rather to 1.8 million Renminbi (approx. 0.2
million Euros). According to the Handelsblatt, the factory used in
order to surreptitiously obtain the subsidies was spurious and did
not exist. The truth is: The factory is a newly built, modern
production facility located in the economic zone of Ling Kong, close
to Beijing Airport. The commissioning of the 13,700 m2 production
space and start of production took place in July 2010. An additional
subsidy granted to Balda in China in 2008 - amounting to 17 million
Renminbi (around 1.9 million Euros) - on the occasion of the
acquisition of the rights to the plot for the aforementioned factory,
at a cost of 54 million Renminbi (6.2 million Euros), has also
resulted in no objections from Chinese officials.

end of ad-hoc-announcement ==========================================
====================================== 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.

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:
Clas Röhl
Tel.: +49 (0) 5734 922-2728
croehl@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