Lenzing, Zimmer Sign Lyocell Agreement

Austria-based Lenzing AG and
Germany-based Zimmer AG have put an end to their differences about lyocell fiber technology patent
issues by completing a licensing agreement whereby Zimmer may use some of Lenzing’s key patents for
the construction of lyocell plants.

Both Lenzing and Zimmer own patents on their production processes for lyocell fibers, which
are made from the raw material cellulose. Lenzing currently markets lyocell under the TENCEL®
brand. Zimmer has developed its lyocell technology in a pilot plant in Germany.

January/February 2006