EANS-News: Balda AG / Performance in line with targets / slightly positive EBIT / MobileCom segment sold

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9-month report

Bad Oeynhausen (euro adhoc) - Balda AG: Performance in line with
targets / slightly positive EBIT / MobileCom segment sold

• Sales revenue in the first nine months slightly down at 44.4
million euros (same period of the previous year: 46.5 million euros)
• EBIT: 0.1 million euros (same period of the previous year: 1.3
million euros) • EBT: 5.7 million euros (previous year: 13.3 million
euros)

Bad Oeynhausen, 3 November 2011 - Balda AG has sold its MobileCom
segment. As reported on 31 October, with this Balda has disposed of
its activities in the mobile phone business in China.

Business performance In the first nine months of the current
financial year the Balda Group recorded sales revenue of 44.4 million
euros in the continued business divisions (2010: 46.5 million euros).
This equates to a fall of 2.1 million euros or 4.5 percent. With
sales of 15.4 million euros, the Group generated around 3.0 million
euros less revenue in the third quarter of 2011 than in the same
period for 2010. This performance is partly due to the consequences
of the nuclear disaster in Japan. Bottlenecks at the suppliers of
electronics components from Japan to be built into electronic devices
resulted in production stops in Malaysia in the Electronic Products
segment. Delays in billing for tools had a negative impact on sales
revenue in the Medical segment in the third quarter of 2011. The
billing will take place in the fourth quarter of 2011.

The Group´s EBIT after nine months was 0.1 million euros following
1.3 million euros in the previous year. The EBIT in the third quarter
was minus 1.0 million euros following plus 0.7 million euros in the
previous year. The lower sales and the continued low utilisation in
the Electronic Products segment had an adverse effect on the EBIT in
the period under review.

The EBT fell due to the reduced financial earnings of 5.6 million
euros (previous year: 11.9 million euros) to 5.7 million euros
(previous year: 13.3 million euros). The nine-month profit in 2011
totalled 6.6 million euros (previous year: 13.6 million euros).

The discontinued business divisions, which include the MobileCom
segment, recorded a loss for the period of 35.0 million euros (same
period of the previous year: loss for the period of 6.7 million
euros). This includes special accounting write-downs to the
recoverable value of the units sold in the amount of 24.5 million
euros. The loss from the operating business of the discontinued
business divisions was 10.5 million euros in the first nine months of
2011.

The Balda Group recorded a consolidated loss (continued and
discontinued business divisions) after the first nine months of the
current financial year of 28.4 million euros compared to a profit of
6.9 million euros in the same period of the previous year.

Performance of the operational Group segments The Medical segment´s
sales rose significantly in the first nine months of 2011 to 24.4
million euros following 20.4 million euros in the same period of the
previous year. Business is growing in line with targets in 2011. The
segment´s EBIT totalled 1.7 million euros after the first nine months
(previous year: 1.6 million euros). The EBT totalled 1.6 million
euros (previous year: 1.4 million euros). The Medical segment is
performing in line with expectations.

Sales revenue in the Electronic Products segment totalled 20.0
million euros as of 30 September 2011 following 26.1 million euros in
the same period of the previous year. The segment´s EBIT was minus
1.5 million euros (previous year: minus 2.6 million euros). In the
second and third quarter the segment achieved a break-even result.
The segment is moving in the right direction.

Financial position The Balda Group recorded in the first nine months
of 2011 due to the decrease in working capital an inflow of funds in
the amount of 2.6 million euros (previous year: an outflow of funds
of 11.6 million euros). Cash and cash equivalents relating to the
continued business divisions totalled as of 30 September 2011 35.8
million euros, the Group´s cash and cash equivalents amounted to 38.7
million euros. Balda is able to finance the operational business in
2011 from its own resources.

Equity Equity fell as of 30 September 2011 to 614.2 million euros
(2010 balance sheet date: 749.7 million euros).

Acquisition as part of the realignment of the Group The Board of
Directors will place the issue of an acquisition back on the agenda
of the Supervisory Board after now having disposed of the MobileCom
segment. Parallelly measures are being implemented internally to
strengthen the Medical segment.

Outlook for 2011 For the 2011 financial year the Board of Directors
is expecting sales revenue in the continued business divisions to be
at the lower end of the forecast of around 70 million euros with a
slightly positive 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 pharmaceutical, medical technology, consumer electronics
electronic communications and mobile phone markets. The Group is
internationally positioned with production sites in Germany and
Malaysia. A subsidiary in the USA operates 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 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
croehl@balda.de

end of announcement euro adhoc
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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: 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