Balda AG

EANS-News: Balda AG with new strategy on the road to success

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Company Information

Bad Oeynhausen (euro adhoc) - Balda AG with new strategy on the road to success

Balda is free of short-term bank liabilities after repayment. Construction of new plant in Beijing is making rapid progress. Malaysia subsidiary receives new orders.

Bad Oeynhausen, 14 December 2009 - Against the background of the new sales campaign launched by the new management board, the recent strategic direction of Balda AG, with separately operated but closely networked business units, is proven to be successful. Balda Medical, since the third quarter core business again and growing profitably, strengthens this positioning. According to CEO Michael  Sienkiewicz, Balda AG, listed in the Prime Standard of the Frankfurt Stock Exchange, has achieved a turnaround with its latest results.

Debt relief of short-term bank liabilities in Germany completed

As part of the already announced sale of 18.75 percent of its stake in touch screen producer TPK, the Balda Group has now repaid its short-term bank liabilities in Germany amounting to approximately 70 million Euros. "Thus we have created the basis for new investment and sustainable growth for the Balda Group," says Rainer Mohr, Chief Financial Officer (CFO).

New production plant in Beijing

With new customers and contracts and contrary to the global market trend for mobile phones the MobileCom division is on a growth path. Production in the first section of the new Beijing plant will start mid-2010. The new plant, logistically well located near the Beijing airport, altogether covers an area of 200 thousand square meters. In the first phase approximately 73 thousand square meters of production space will be available. "This will be one of the world´s largest and most modern plants for the processing of high-performance plastics for smaller product sizes. With the new manufacturing Balda has positioned itself even stronger for mass production in its MobileCom core business. Niche products with fewer high-volume production batches for more exclusive models will be produced by the Balda plant in Suzhou", comments Michael Sienkiewicz, CEO of Balda AG.

New orders and customers for the Malaysia region

Balda Solutions Malaysia (BSM) has secured a major contract with its long- standing customer Canon. The contract includes the moulding of the camera bodies and for the first time the assembly of a large part of up to four digital camera models. Start of production is December 2009. In addition, the company will be producing an online tablet device for a leading German internet portal. The cooperation with SonyEricsson in the manufacturing of Bluetooth headphones with a radio connection has been strengthened. In addition, BSM will manufacture mechanical components for a Finnish company that produces Intel- based phones. With these orders the company will significantly increase its revenues in 2010.

Company Profile Balda AG

The Balda Group develops and produces complete plastic assemblies, electronic products and products for the medical industry. The customers of Balda are leaders in business from the mobile, entertainment and electronic communications as well as pharmaceutical and medical technology markets.

The group has an international position with product sites in China, Malaysia, India and Germany. A subsidiary in the United States serves North American customers in product design and development. As part of a shareholding in a leading manufacturer of touch screens in China, Balda participates in the dynamic touch screen displays market.

* * *

This corporate news announcement includes "forward-looking statements" which are based on the current expectations of the management of Balda. They are subject to risks and uncertainty because they relate to 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 does not undertake any obligation to update publicly or revise forward-looking statements except to the extent legally required.

This corporate news announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or elsewhere. The shares in Balda AG (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act") unless registered under the Securities Act or pursuant to an exemption from such registration. The Shares have not been and will not be registered under the Securities Act.

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ots Originaltext: Balda AG
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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
              Düsseldorf / free trade
              München / free trade

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