Lenzing - Leading Fiber Innovation

Tuesday, 14. September 2010

Appointed joint lead managers of the bond issue are UniCredit Bank Austria AG and Raiffeisen Zentralbank Österreich AG, senior co-lead managers: Raiffeisenlandesbank Oberösterreich AG, Erste Group and Oberbank AG, co-lead managers: Investkredit Bank AG, Sparkasse Oberösterreich and BAWAG P.S.K. Admission to the second regulated market of the Vienna stock exchange will be applied for. The issue price will be announced with the start of the subscription period. The bond offer is directed at private and institutional investors in Austria. The subscription period is scheduled for 20 to 22 September 2010 (early closure reserved).

Lenzing's chairman of the management board, CEO Peter Untersperger, told the press at a meeting on the bond issue on Tuesday that the company expects strong demand for Lenzing fibers over the next years: “The mega-trends population growth and rising prosperity, the need for production based on sustainable raw materials and global warming are going to contribute to the sequel of Lenzing's current success story.” He further pointed out that the good result of the first half year 2010 had shown the anti-cyclical investment policy of the Lenzing Group to be absolutely right. COO Friedrich Weninger added: “The company will continue this course and plans to expand its annual fiber production capacity from currently 690,000 tons to one million tons by mid-term of the decade”. He explained that this goal is to be achieved by expanding existing production sites, as well as by new green field projects.

CFO Thomas G. Winkler complemented: “Lenzing is aiming at a long-term equity ratio of around 35 percent, even if expansion continues to be as dynamic.” The company's good results situation presents Lenzing as a substantial company with a sustainably attractive cash flow. The company has managed the economic and financial crisis far better than most companies, with sales and results in the second quarter of 2010 exceeding those of any pre-crisis quarter.
The bond's denomination of EUR 1,000 has been chosen with private investors in mind as well. Thomas G. Winkler in looking ahead: “We expect the market to receive our bond issue favorably and are looking forward to opening the Austrian bond market after its summer recess”.

Disclaimer:
This is a press release which is not binding and which does not substitute any advice for the purchase or sell of the bonds. Nothing in this ad-hoc information constitutes an offer to buy or to sell the bonds mentioned herein. A public offer will be made only on the basis of the prospectus of Lenzing AG (“issuer”) approved, published and notified to Austria by the Commission de Surveillance du Secteur Financier dated 09.09.2010. The prospectus will be available on the issuer’s homepag http://www.lenzing.com/ and on the homepage of the Luxemburg Stock Exchange http://www.bourse.lu/ as well as at the seat of the issuer Werkstraße 2, 4860 Lenzing, Austria, during regular business hours free of charge. In relation to the offer of the bonds only the information in the prospectus will be binding.

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