Balda Aktiengesellschaft

EANS-News: Balda AG
MobileCom segment seeks strategic partner
acquisition process as planned

Sole board member Rainer Mohr reports in London on the implementation of the GroupÂ’s plans

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Company Information

Subtitle: Sole board member Rainer Mohr reports in London on the implementation of the GroupÂ’s plans

Bad Oeynhausen (euro adhoc) - Bad Oeynhausen, 28 April 2011 - The Frankfurt SDax listed company Balda AG is making significant progress in reorganising Group activities. At a meeting with analysts and investors in London, sole board member Rainer Mohr explained that specific measures are being taken in relation to the future of the production location of the Group´s MobileCom segment. He also explained that the due diligence process for an acquisition in the Medical sector or a related sector was progressing according to plan. He added that the Board of Directors was planning to sell the shares Balda holds in the touchscreen manufacturer TPK in a favourable market environment and to pay out as much of the proceeds as possible as dividends.

Strategic partner for MobileCom "An external and carefully prepared report commissioned by myself as CEO in mid-February has highlighted very clearly the options for the MobileCom sector. As a consequence of this, Balda is now seeking some form of cooperation with a strategic investor. Within the scope of such an agreement we would also be prepared to enter into a possible joint venture." Mohr pointed out that this plan was still subject to approval by the supervisory board. "The short-term goal is to stabilise sales and improve capacity utilisation at the two plants in China´s capital," explained Mohr.

Acquisition process Mohr underlined the intention to expand the profitable Medical sector with an acquisition, possibly in a related branch of production. "We are in a due diligence process with several companies. By the Annual General Meeting on 27 May we should have received offers upon which we can make a decision," emphasised Mohr. The sole board member also made it clear that any planned acquisition did not need to be financed by the proceeds from the sale of shares in TPK. Mohr further explained that "after the successful financial restructuring, Balda AG has been free of debt since the autumn of 2009 and would be able to finance a transaction also by its own means."

* * * Company profile of Balda AG The Balda Group develops and produces complete plastic assemblies, electronicproducts 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 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

Further inquiry note:

Clas Röhl
Tel.: +49 (0) 5734 922-2728

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
DĂĽsseldorf / free trade
MĂĽnchen / free trade

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