Lenzing Expands Tencel® Production

In response to consistently strong customer demand, Austria-based Lenzing AG will invest 25 million
euros ($35.4 million) to expand its Tencel® production plant in Heiligenkreuz, Austria.

The expansion, expected to conclude within the next business year, will add two spinning
lines to the facility’s existing second production line. Annual capacity will be expanded from
40,000 tons to 50,000 tons.

Lenzing currently produces 130,000 tons of Tencel fiber each year at its existing locations
in Austria, England and Mobile, Ala., for use in a range of sectors including home textiles,
apparel and nonwovens.

October 2, 2007