Lenzing To Expand European, Asian Sites

Cellulosic fiber producer Lenzing Group, Austria, will invest 120 million euros in 2010 to expand
production sites in Europe and Asia.

Annual capacity will be increased to 260,000 tons and an eco-friendly ozone bleaching
facility for pulp production will be added to the Lenzing, Austria, plant. The company will
increase Tencel® capacity at Heiligenkreuz, Austria, from 10,000 tons to 60,000 tons per year. The
Grimsby, England, site will be renovated to manufacture a special Tencel fiber. Improved production
efficiencies at Indonesia-based subsidiary PT South Pacific Viscose, which has just increased
capacity by 60,000 tons to 220,000 tons, will enable a further capacity increase to 238,000 tons.

January/February 2010