euro adhoc: Lenzing AG / Financial Figures/Balance Sheet / Lenzing Group: Preliminary 2005 results Successful growth in difficult environment

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13.03.2006

Lenzing Group expansion continued in 2005, despite a difficult fiber
business environment.

Sales by the Lenzing Group increased by 8.2% to EUR 942.6 mill.
(compared to EUR 871.1 mill. in 2004) according to preliminary
figures. EBIT at EUR 81.8 mill. was below the 2004 record figure of
EUR 104.3 mill. Share of net income of shareholders came to EUR 56.9
mill. after 67.7 mill.

Lenzing increased production in its cellulose fiber core business by
9.5% to about 454,000 tons. The core business fibers in 2005 was
characterized by good demand but falling fiber prices and rising
production costs. The rise in raw material and energy prices in 2005
burdened the business with additional EUR 35 mill.

In front of this background, Lenzing’s successful countersteering
strategy produced a satisfactory result in 2005. The company again
succeeded in improving its textile market position in 2005 by
developing new fields of application and markets for the fibers, by
product innovation, and by intensive global marketing efforts.
Nonwovens saw an increase in market share as well and new products
for medical and technical applications were introduced successfully.

The contribution of core business fiber and pulp to company group
sales was 81%.

Once again: Good development of Lenzing Technik and Lenzing Plastics
Engineering and systems construction company Lenzing Technik and
Lenzing Plastics, the successful producer of plastics niche
applications, once again produced good results. There was no change
in the poor economic conditions of the paper industry. The result of
Lenzing Paper was therefore not satisfactory, despite extensive cost
savings.

Outlook: Good prospects for continued growth All in all, growth
prospects for business year 2006 are considered to be good. Results
will depend on successful internal measures and price adaptations to
reduce the cost-price squeeze.

Company group key figures (IFRS)
in EUR mill. 2005 2004*
prel
Sales 942.6 871.1
EBITDA 141.6 160.4
EBIT 81.8 104.3
Share of net income
of shareholders 56.9 67.7
EBITDA margin in % 15.0 18.4
EBIT margin in % 8.7 12.0
EBT 79.3 103.5
Equity ratio in % 48.0 48.7
Staff 4,860 4,845
Investments 82.4 60.9
Net cash flow from
operating activities 124.3 95.3
* adapted according to IFRS

end of announcement euro adhoc 13.03.2006 08:25:21
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ots Originaltext: Lenzing AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 07672-96301
mailto:a.guldt@lenzing.com

Branche: Chemicals
ISIN: AT0000644505
WKN: 852927
Index: WBI
Börsen: Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Bayerische Börse / free trade
Wiener Börse AG / official dealing