Balda Aktiengesellschaft

ots Ad hoc-Service: BALDA AG Balda's expansion into the emerging markets

Ad hoc-announcement. The sender is solely responsible for the contents of this announcement. -----------------------------------------------------

    Bad Oeynhausen (ots Ad hoc-Service) - The joint venture due to be launched in May of this year be- tween Mikron AG, listed on the Swiss stock market, and Balda AG, noted in the Ne-max 50, is opening new production facilities in the burgeoning markets of Asia and South America. Balda and Mikron - both producers of mobile phone equipment, among others - have concluded a 'letter of intent' regarding the foundation of a new mutual company. The members are partners each having an equal number of shares. Mikron, which achieved sales returns in the 2000 fiscal year of around 425 million Euros, will be bringing its Infocom-Division into the joint venture. Final contract conclusion is scheduled for the end of April. The new joint venture company will operate existing production facilities of the Swiss technology corporation in Greater Shanghai in China and in Ipoh, Malaysia. Existing orders from Alcatel, Ericsson, Nokia, Siemens and Chinese mobile phone manufacturers will be completed here. In Karlskoga, Sweden, the joint venture will operate a development center and a production plant for the customers Ericsson/Flextronics. Development centers will be maintained in San Antonio, Texas for the North American markets and Mexico as well as in Sao Paulo, Brazil for the production location in Manaos, which starts up in the fourth quarter of 2001. This means that the company is present at the most recently established sites of its leading customers on the world market. In 2001, Balda expects a proportionally consolidated turnover share in the joint ven-ture of around 16 million Euros. The operative result should break even taking ac-count of the start-up losses. Goodwill depreciations and interest will burden the corporate result with around 2.0 million Euros. This is expected to lead to a result diminished by around 3.5 Cents per share of 0.495 Euros. Including the achievements from the joint venture, Balda is set to grow in sales volume and turnover in 2001. The turnover target is increased from 220 million Euros to 236 million Euros. The first quarter of the current fiscal year which, in terms of results and turnover, presently demonstrating an increase of 38 percent, is running fully according to plan.

         Issuer's information/explanation remarks concerning this ad hoc announcement:

    The development projects for all other customers will be controlled from the Balda headquarters in Bad Oeynhausen. Another feature of the joint venture is the "Wireless Technology Group", which will focus on the task of research and development into innovative mobile communication technologies, such as Bluetooth or Wireless-Pens technology, for example.

    What is more, Balda will be relocating the production from the factory in Bünde to Bad Oeynhausen. This is due to the passing emergence of overcapacities in Europe. Plans to set up a production facility in Hungary have been postponed.

    Inquiries: Balda AG, Cersten Hellmich (Investor Relations), telephone: +49 (05734)922-2706, fax: +49(05734) 922-2691, e-mail:, Internet:


    WKN: 521510; Index: NEMAX 50 Listed: Neuer Markt Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Stuttgart, Hannover

    End of message ----------------------------------------------------- Internet:

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