EANS-News: Lenzing AG / Lenzing Group and smartfiber AG Intensify Their Cooperation

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Joint Ventures/Cooperation/Collaboration

Lenzing (euro adhoc) - Lenzing AG, world market leader for man-made
cellulose fibers and the German company smartfiber AG/Rudolstadt are
expanding their cooperation. In the future Lenzing will exclusively
produce the lyocell specialty fibers smartcel™ and SeaCell® developed
by smartfiber at the Lenzing site in Upper Austria.

In 2007, Lenzing already granted smartfiber a license for the pilot
production of new types of lyocell specialty fibers. Moreover,
smartfiber and Lenzing have been cooperating for several years to
develop fabrics and on various research projects.

For reasons of profitability, the pilot plant of smartfiber is being
relocated from Rudolstadt to Lenzing in order to be able to rapidly
move ahead with the commercial exploitation of smartcel™ and SeaCell®
fibers in spite of rising energy and raw material prices. The
integration of the facility in Lenzing, the world´s largest cellulose
fiber production site, will enable a significantly better cost
structure. Moreover, the smartfiber pilot plant had recently reached
its capacity limits due to the continually increasing order volume,
which no longer made it possible to optimally coordinate incoming
orders and accept large orders. smartfiber will continue to be
responsible for the sales and marketing of smartcel™ and SeaCell®.

The smartcel™ and SeaCell® fibers are primarily used in home textiles
as well as in the fashion and medicine segments. The SeaCell® fibers
contain valuable active substances from seaweed which promotes
health, nurtures the skin and protects against free radicals.
smartcel™ sensitive is the first antibacterial, natural fiber
available on the market to which the essential trace element zinc is
added, thus enabling regenerative skin care and hygiene in textiles.

The management of smartfiber considers the intensified cooperation
with Lenzing to be an important and future-oriented step for the
benefit of customers which comprises a win-win situation for the two
companies involved. Thus the high level of competence on the part of
Lenzing with respect to the production and processing of lyocell
fibers under the brand TENCEL® will be combined with the original and
innovative patented technology of the function-oriented fiber
products developed by smartfiber. The objective of smartfiber is to
be able to offer the best possible quality, service-oriented order
processing and intensified sales-driven marketing support to
customers in the future.

For Lenzing the launch of pilot production for smartfiber at the
Lenzing site is a consistent continuation of the research and
development partnership which smartfiber and Lenzing have pursued for
years.

Further inquiry note:
Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 7672-918-2713
mailto:a.guldt@lenzing.com

end of announcement euro adhoc
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company: Lenzing AG

A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: a.guldt@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: free trade: Berlin, official market: Wien
language: English