EANS-News: B & C Industrieholding GmbH / Constructive support of Lenzing´s growth strategy; maintaining core shareholder structure

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B & C: Constructive support of Lenzing´s growth strategy; maintaining
core shareholder structure

At the Lenzing EGM on December 10, 2010, shareholders approved the
creation of authorized and contingent capital to enable Lenzing to
issue equity and/or convertible bonds. The approved authorizations
provide Lenzing with additional financial flexibility to optimize its
capital structure and to support its planned growth. B & C Group, the
90.5% majority shareholder in Lenzing, supports the business plan and
growth strategy of Lenzing and is currently evaluating potential
alternatives to further foster this growth strategy. These
considerations include, amongst others, supporting the increase in
liquidity of the Lenzing share with B & C´s participation in capital
market transactions, in order to increase the attractiveness of the
Lenzing share for investors and to improve the company´s access to
the capital markets. B & C has not made any decision regarding any
such alternative nor has it decided on any contemplated timing nor
quantum. B & C will, in particular, be focused on prevailing market
conditions and achievable economic terms as it contemplates any such
alternative. In any case, B & C will maintain its active role as a
long-term core and majority shareholder of Lenzing in the future.

The Lenzing Group is a global leader in cellulose fibers with its
headquarters in Austria, production sites in all major markets and a
global network of sales and marketing offices. Lenzing provides the
global textile and nonwovens industry with high-quality cellulose
fibers.

B & C is one of the largest Austrian investment holding companies and
currently holds, amongst others, controlling stakes in the listed
industrial companies Lenzing AG (90.5%) and Semperit AG Holding
(54.2%) as well as a substantial stake in the construction company
Porr (38.7% of the voting rights). The main goal of B & C is to
foster Austrian entrepreneurship. The management board consists of
Dr. Michael Junghans, head of the management board, Mag. Patrick F.
Prügger and Dr. Walter Lederer. Further information on B & C
Industrieholding GmbH can be found at www.bcholding.at.

Disclaimer: This press release is not an offer of securities for sale
or a solicitation of an offer to purchase any securities of Lenzing
AG. A public offer may only be made in Austria after publication of a
prospectus prepared in accordance with the provisions of the Austrian
Capital Markets Act. If a public offer is to be made in Austria, a
prospectus will be prepared in accordance with the Austrian Capital
Markets Act. Such prospectus will be available free of charge at the
Company´s registered office during usual business hours. This press
release is not for distribution, directly or indirectly, in or into
the United States (including its territories and possessions, any
State of the United States and the District of Columbia). This press
release does not constitute or form a part of any offer or
solicitation to purchase or subscribe for securities in the United
States of America. The securities of Lenzing AG mentioned herein may
not be offered or sold in the United States absent registration or an
exemption from registration under the US Securities Act of 1933, as
amended (the "Securities Act"). The securities will not be registered
under the Securities Act. There will be no public offering of
securities in the United States. This press release is directed only
at persons (i) who are outside the United Kingdom or (ii) who have
professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (as amended) (the "Order") or (iii)
who fall within Article 49(2)(a) to (d) ("high net worth companies,
unincorporated associations etc.") of the Order (all such persons
together being referred to as "Relevant Persons"). Any person who is
not a Relevant Person must not act or rely on this communication or
any of its contents. Any investment or investment activity to which
this communication relates is available only to Relevant Persons and
will be engaged in only with Relevant Persons.

end of announcement euro adhoc
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ots Originaltext: B & C Industrieholding GmbH
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Michael Junghans
Head of the Management Board
T: +43 (1) 533 2 533 - 16

Branche: Holding companies
ISIN:
WKN: