EANS-Adhoc: Balda AG / Business development in the first quarter of 2011 in line with expectations / Progress made in the reorganisation of the Group / The Board of Directors is planning a dividend pa

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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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3-month report

05.05.2011

- Sales revenue of 26.7 million euros in the first quarter slightly
above the previous year´s figure of 26.0 million euros - EBIT
improved by 0.4 million euros to minus 1.9 million euros following
minus 2.3 million euros in the first quarter of 2010 - EBT improved
by 2.7 million euros to 4.7 million euros thanks to positive
financial earnings (same period for the previous year: 2.0 million
euros) - Cash flow from current business activities increased
significantly by 10.7 million euros to 9.1 million euros (previous
year: minus 1.6 million euros). - MobileCom segment: Looking for a
strategic partner and to stabilise current processes - Expansion of
the Medical segment with an acquisition, possibly in a related
product area, as planned / Balda able to finance a potential takeover
by its own means - Forecast for 2011: Sales revenue at the previous
year´s level with a slightly positive EBIT

Bad Oeynhausen, 5 May 2011 - The Frankfurt SDax listed company Balda
AG generated sales of 26.7 million euros in the first quarter of 2011
compared to 26.0 million euros in the same period for the previous
year. This is a slight increase of 0.7 million euros or 2.8 percent.
The Group's EBIT of minus 1.9 million euros was also an improvement
on the previous year's figure (minus 2.3 million euros). The sales
and earnings situation is in line with the Group´s targets for the
first quarter of 2011.

The Balda Group achieved positive financial earnings of 6.6 million
euros in the first quarter of 2011 following 4.3 million euros in the
previous year. An increase in interest income of 0.8 million euros
and currency gains of 6.8 million euros relating to internal
financing are responsible for this. The EBT was plus 4.7 million
euros thanks to positive financial earnings (same period for the
previous year: 2.0 million euros).

Overall the Balda Group recorded a consolidated profit after the
first three months of the current financial year of 4.4 million euros
compared to 1.5 million euros in the same period of the previous
year. In the period under the review the earnings per share were 7.4
cents. In the same period of the previous year this figure was 3.0
cents.

Significant increase in operational cash flow Due to the fall in
working capital (current assets less current liabilities)
particularly in the MobileCom segment, the cash flow from current
business activities was at 9.1 million euros better than the previous
year's figure of minus 1.6 million euros. In addition, losses did not
need to be offset. The earnings before interest, taxes, depreciation
and amortisation (EBITDA) was at only minus 0.1 million euros in the
first quarter of 2011.

Heterogeneous development for the three operational Group segments
The MobileCom segment generated sales revenue of 13.2 million euros
in the first quarter compared to 14.2 million euros in the previous
year. Overall the segment recorded an EBIT of minus 0.9 million euros
in the first quarter following a slightly positive EBIT in the
previous year. The continuing pressure on prices as a result of
intense competition among suppliers of mobile phone manufacturers
(and electronics producers) resulted in stagnant sales and lower
margins. The Balda Group has taken immediate measures to improve
performance and is looking for a strategic partner for the two
production plants in Beijing.

The Electronic Products achieved its goals in the first quarter. The
segment increased its sales revenue significantly in the first
quarter by 19.8 percent to 6.6 million euros (previous year: 5.5
million euros). The measures taken to reduce costs had a positive
impact in the 2010 financial year. The Electronic Products segment's
EBIT was, at minus 0.8 million euros, 0.9 million euros less than the
previous year's loss of 1.7 million euros.

The Medical segment´s sales were above target. The Medical segment
benefited from advance payments made in 2010 for future projects. The
segment generated sales revenue of 6.8 million euros in the first
quarter of 2011 following 6.2 million euros in the previous year. The
Medical segment achieved an EBIT of 0.3 million euros as of 31 March
2011 following 0.4 million euros in the same period for the previous
year.

The Group is working hard and determined on the acquisition of a
substantial share in a company in the Medical market segment or
related to the Medical market segment. The due diligence phase in the
acquisition processes will soon be completed.

Equity increased The Balda Group´s equity has increased from 749.7
million euros as of 31 December 2010 to 816.0 million euros as of the
balance sheet date of the period under review. The subsequent value
of the TPK shares as of 31 March 2011 was responsible for this. The
fall in currency conversion differences due to changes in euro
exchange rates had an opposite effect. The equity ratio as of 31
March 2011 was 93.2 percent (31 December 2010: 92.5 percent). Liquid
funds as of 31 March 2011 totalled 48.3 million euros (31 December
2010: 48.9 million euros). Thus, the company continues to have a
comfortable financial base.

Outlook for 2011 For the 2011 financial year the Board of Directors
confirms the forecast it provided in the Annual Report 2010, i.e. the
Board of Directors is expecting sales revenue to be at the previous
year's level and a slightly positive EBIT. Not including income from
the planned sale of TPK shares, the EBT is likely to be at the same
level as the EBIT. The Board of Directors still plans to pay an
attractive dividend in the 2012 financial year.

By the end of the first half of 2011 the Supervisory Board should
have received a submission for decision concerning the acquisition in
the Medical segment.

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.

end of announcement euro adhoc
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ots Originaltext: Balda AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

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

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
Düsseldorf / free trade
München / free trade