Lenzing Group: Best Half Year Result In Company History

LENZING, Austria — August 24, 2010 — As in the first quarter of 2010, the Lenzing Group made
optimum use of the good global market environment and achieved an excellent result in the second

Consolidated sales in the first half of 2010 climbed by 43.6 %1 to EUR 847.2 mill. from EUR
589.9 mill. This was the strongest rise in sales in the past years. It was enabled by higher fiber
quantity, the price dynamics of global markets, as well as by the first-time full consolidation,
from early May of 2010 on, of the pulp production site Biocel Paskov (Czech Republic), acquired in
April 2010.

The operative result developed even more dynamically than sales. Half year EBIT increased
sevenfold from EUR 15.4 mill. to EUR 108.6 mill. Due to the higher cost of financing investment EBT
increased thirteen-fold from EUR 8.0 mill. to EUR 105.0 mill. Profit for the period, after
deduction of income taxes of EUR 24.6 mill. (2009: EUR 2.1 mill.), came to EUR 80.4 mill. (2009:
EUR 5.9 mill.). The profit of the first half of 2010 already now exceeds that of the total annual
profits of 2008 and 2009, respectively. The first half year of 2010 was therefore the best half
year in the history of the company.

Peter Untersperger, CEO of Lenzing AG, comments: “The half year result shows that the
company’s anti-cyclical investment strategy of the years 2008 and 2009 was absolutely right. The
startup of new fiber capacity in Indonesia in the first half of 2010, investment in debottlenecking
in China and the expansion of Heiligenkreuz (Austria) put us in a position to make optimum use of
the expected fiber market dynamics and to give our customers what they need. Despite all these
considerable investments and the acquisition of Biocel Paskov Lenzing today has an equity ratio of
42.1 % of the balance sheet total at a net gearing rate of 54.3 %. These provide the company with a
sustained solid balance sheet structure.”

Positive development of all segments

Sales of segment Fibers grew by 46.3% to EUR 741.0 mill. and the result improved from past
year’s EUR 13.0 mill. to EUR 102.9 mill. despite raw material prices beginning to rise considerably
in the second quarter of 2010. Higher production capacity along with full utilization at all sites
and significantly higher prices were the reason for this excellent development. Business unit
Textile Fibers as well as Nonwoven Fibers performed excellently. In particular the special fibers
Lenzing Modal® and TENCEL® met with above-average broad-based success due to innovative
applications. Demand from all major sales markets in Asia, but Europe and USA as well, was strong.

Sales of segment Plastics Products grew by 32.8% to EUR 95.9 mill. Improved capacity
utilization and the cost efficiency measures implemented in 2009 resulted in a significantly
improved result of EUR 3.2 mill. over the previous balanced result.

The development of business unit Engineering in the first half of the year was characterized
by the continued high investment activity of the Lenzing Group and good order bookings from
external customers. Stable half year sales of EUR 38.4 mill. (2009: EUR 38.8 mill.) provided a
segment result of EUR 2.5 mill. (first half year 2009: EUR 3.5 mill.).


In the second half of the year core business fibers is expected to experience weakening fiber
demand in view of recent first signs of overheating. New cellulose fiber production capacity in
China will begin to supply the market in 2010 and 2011 and may temporarily reinforce this trend.
The strong momentum of the first half of the year will therefore lose some of its force in the
second half of the year and continued high raw material prices (pulp and wood) are expected to
weaken margins. Lenzing’s special fibers will not be affected by this development to the same
degree. The raw material price situation, in particular for dissolving pulp, is foreseen to calm
down in the fourth quarter. The business development of segments Plastics Products and Engineering
should remain stable.

Pending a sustained recovery of the global economy, the Lenzing Group expects a satisfactory
second half of the year, however, with a result below that of the first half.

Posted on August 24, 2010

Press Release Courtesy of the Lenzing Group