euro adhoc: Lenzing AG / quarterly or semiannual financial statement / Strong sales growth in the first six months of 2006

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Disclosure announcement transmitted by euro adhoc.
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28.08.2006

Strong demand in textile fiber business - new product applications
well received by the market - good quantity demand expected for the
next six months

The Lenzing Group continued to grow in the first six months,
realizing good earnings. The second quarter of 2006 saw the
consolidation of the positive development in fiber business market
conditions that had set in during the first quarter. The result of
the second quarter is one of the best quarterly results in the
history of the company.

Consolidated sales of the company group went up by 14.9% to EUR 533.5
mill. for the first six months of 2006 (compared to EUR 464.4 mill.
for the 2005 reference period). EBIT at EUR 50.4 mill was on par with
the result for the first six months of 2005 (EUR 50.2 mill.). EBIT
for the second quarter of 2006 at EUR 27.6 mill, moreover, was 21.0%
higher than the corresponding figure for 2005 (EUR 22.8 mill.)

Rising interest rates in the dollar zone and an unfavorable exchange
rate situation lowered the financial result to minus EUR 6.4 mill.
(2005: plus EUR 1.1 mill.). The result before taxes at EUR 44.0 mill.
was 14.2% lower than for the first six months of 2005 (EUR 51.3
mill). Period net earnings were at EUR 31.7 mill. (2005: EUR 38.4
mill.).

The current strong quantity demand mainly concerns business sector
textile fibers. Lenzing was able to expand its business in Asia, but
the European market situation, too, is more stable after last year’s
turbulent events. Demand for high-quality specialties has continued
to rise. Lenzing, moreover, was very successful in establishing newly
developed fiber applications in the market. Gratifying growth rates
were achieved in the home textile market, too. Quantity demand in
business sector nonwovens was good, price development there, however,
was unsatisfactory. Lenzing Plastics and Lenzing Technik continue
their good development The business development of Lenzing Plastics
continues to be positive, only sales of carry handles for mineral
water packaging were below expectations, due to the cool weather of
the first six months. Lenzing Technik, particularly in the second
quarter, was able to report good order bookings. The readiness of the
fiber and pulp industry to invest continues to be positive. The
result of Lenzing Technik for the first six months was satisfactory.
Further cost savings were implemented in business sector paper. They
were, however, nullified by rising raw material prices. The result
for the first six months was therefore slightly negative.

Outlook Good quantity demand for fibers to continue Good quantity
demand in the fiber business is expected to continue into the coming
months. Demand for textile products, especially in China and Japan,
continues to be strong. Prices for energy and raw materials, however,
will rise further. The resulting substantial pressure on margins will
have to be compensated by further cost savings and increased
efficiency. In addition long-term cost savings measures will be
implemented in the next months.

Key figures Lenzing Group (IFRS) in EUR mill. 1-6/ 2006 1-6/ 2005
Sales 533.5 464.4
EBITDA 81.8 81.3
EBIT 50.4 50.2
EBT 44.0 51.3
Net income 31.7 38.4

end of announcement euro adhoc 28.08.2006 07:27:39
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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