EANS-Adhoc: Lenzing AG / Lenzing acquires majority share in Czech pulp producer Biocel Paskov

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06.04.2010

Chairman Peter Untersperger: Strategic vertical backwards integration

Lenzing AG, quoted at the Vienna stock exchange and world market
leader in cellulose fibers, acquires a 75 % share in Czech pulp
producer Biocel Paskov A.S. The seller, the Austrian Heinzel Holding
will keep a 25 % share in the company and manage paper pulp
distribution.

Biocel paper pulp production capacity runs to about 280,000 tons per
year. Lenzing intends to invest EUR 50 mill. in the site's capacity
expansion, measures to increase energy efficiency and recovery
systems. Biocel Paskov in the medium and long run will provide
Lenzing with the option of producing paper pulp as well as dissolving
pulp for fibers.

The transaction is pending anti-trust authority approval. The price
is in the range of six to seven times Biocel's EBITDA.

Peter Untersperger, chairman of the Lenzing management board reasons:
"The acquisition of Biocel is an important strategic step towards the
Group's long-term extension of its vertical backwards integration.
The expansion and restructuring of the site into a swing capacity
producer of pulp will enable us to flexibly adjust to given pulp
market situations and to either produce dissolving pulp for our fiber
production or paper pulp for external customers. The acquisition is
part of a hedging strategy to protect Lenzing from the impact of high
pulp price volatility."

In view of the dynamic expansion in business field fibers sustainable
pulp supply is becoming an issue of growing importance to Lenzing.

Friedrich Weninger of the Lenzing management board and in charge of
fiber business comments: "The existing pulp supply structure of the
Lenzing Group which is characterized by our own pulp production,
long-term supply contracts and spot purchases will not be affected by
the acquisition of Biocel for the time being.

Biocel meets strict European ecological standards. The company
processes spruce wood from certified forestry, ensuring ecological
reliability of the raw material. Biocell, moreover, uses the same
magnesium bisulfite process as the pulp factory at the Lenzing site.
Lenzing is the global technology leader of this process.

The former state-owned pulp factory Biocel Paskov started production
in 1985 and was modernized to ecological standards in the 90ies. The
group of Austrian industrialist Alfred Heinzel acquired the factory
in 2001 and continued its modernization. Since 2004 Biocel has been
cooperating with the neighboring sawmill of the Austrian wood
industry group Mayr Melnhof from which it obtains half of its raw
materials in the form of wood chips. Biocel currently employs a staff
of 380 and generates annual sales of about EUR 114 mill.

end of announcement euro adhoc
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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: Berlin / free trade
Wien / official dealing