Lenzing - Leading Fiber Innovation

Friday, 19. November 2010

Peter Untersperger, CEO of Lenzing, comments: "The proposed share split is intended to fulfill a long-standing request of private investors to facilitate trading in Lenzing shares. The framework resolutions on authorized and conditional capital would give us a high degree of flexibility to support the company's future expansion plans. The option to issue new shares against contribution in kind would allow us to use Lenzing shares as acquisition currency, should the situation arise. And in the event of a convertible bond issue, debt could be converted into equity in the medium term.

Decisions on implementing these measures and the possible exclusion of shareholders' subscription rights will only be made based on defined projects. These decisions would always require the approval of the supervisory board as well as of the management board. Given the distinct volatility of the financial markets, it is sensible to convene an extraordinary general meeting now, in order to being able to exploit potentially arising market opportunities if required.

Lenzing's key shareholder, B & C Industrieholding GmbH, is generally supportive towards the resolution proposals published today. Michael Junghans, managing director of B & C Industrieholding GmbH, comments: "We support the business plan and Lenzing's attractive growth strategy. We therefore intend to propose that, at the extraordinary general meeting, our corporate bodies approve Lenzing's request for framework authorization of capital measures to increase its financial flexibility."

For more information please contact:
Angelika Guldt
Head of Corporate Communications
Phone: +43 (0) 7672 701-2713
E-mail: a.guldt@lenzing.com

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