euro adhoc: Lenzing AG / Financial Figures/Balance Sheet / Lenzing Group: 2007 - Another record result

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14.03.2008

Lenzing Group:
2007 - Another record result

. Consolidated sales up 20.9 percent to EUR 1.26 bill.
. EBIT up 50.6 percent to EUR 162.3 mill.
. Management board proposes dividend of EUR 14 (2006: EUR 10)

The business result of the Lenzing Group for 2007 clearly surpasses
the very good result of 2006. Excellent economic conditions and the
dynamic expansion of the group in fibers and plastics form the basis
of yet another record result.

According to preliminary figures, consolidated sales rose by 20.9% to
EUR 1.26 bill. (2006: EUR 1.04 bill.). EBITDA improved by 35.4% to
EUR 229.3 mill. (2006: EUR 169.3 mill.) and EBIT rose by 50.6% to
162.3 mill. (2006: EUR 107.8 mill.). Net income improved by 33.1% to
EUR 117.6 mill. (2006: EUR 88.4). The management board will propose a
dividend of EUR 14.00 per share (2006: EUR 10.00).

"We made optimum use of the opportunities provided by fiber boom year
2007 and fully utilized our production capacity that we had built up
in time. At the same time we passed raw material price increases on
to the market. To add, we had the strong expansion of Business Unit
Plastics with four new businesses acquired in the past twelve months
alone" comments Thomas Fahnemann, chairman of the management board.

Sales by Segment Fibers - generating 80% of consolidated sales -
according to preliminary segment reporting were EUR 1,069.5 mill.
(2006: EUR 902.8 mill.). Segment EBIT improved to EUR 148.4 mill.
(2006: EUR 89.6 mill.) and 560,000 tons (2006: 480,000 tons) of
produced fibers constitute a new production record. It was brought
about mainly by the start of production at the fiber plant in Nanjing
(China).

"Lenzing in 2007 further enhanced its global lead in cellulose fiber
production in terms of quantity as well as quality" is Thomas
Fahnemann's comment on the current development. The newly developed
fiber MicroModal® AIR, a particularly fine fiber for high quality
lingerie applications, is a case in point, as well as the current
outstanding success of Lenzing FR® fibers: this Lenzing fiber is not
only very much in demand for heat resistant work wear for industry
and fire fighting. It also is the basis of a new generation of flame
retardant uniforms for the US armed forces. Continuous innovation
significantly broadened Lenzing's areas of application for nonwovens,
particularly in technical applications, for example as reinforcement
fibers replacing asbestos or glassfiber.

Lenzing's specialty fiber TENCEL®, for example, is used in the
separators of high-performance batteries of hybrid-power cars. Thomas
Fahnemann outlines the situation: "Lenzing Fibers for textile and
nonwovens applications are increasingly becoming high-tech products.
We do, however, not neglect our important volume business with
high-quality viscose fibers." Scheduled investment of about EUR 160
mill. for the expansion of production capacity in Segment Fibers
alone, is evidence of that.

Dynamic expansion of Plastics

Segment Plastics in 2007 was defined as another growth platform, next
to business field fibers. A corresponding acquisition policy set
Plastics onto a new level of international industrial activity.

According to preliminary segment reporting, sales improved to EUR
133.1 mill. (2006: EUR 93.5 mill). Segment EBIT increased to EUR 9.0
mill. (EUR 8.9 mill) and staff grew to almost 1000 (2006: 350). The
production focus is on thermoplastics, PTFE fibers and yarns, short
cut filaments and precursor for carbon fibers. Lenzing Plastics
operates a total of six production sites in Europe and the USA.

According to preliminary figures, Segment Engineering increased
overall sales to EUR 119.0 mill. (2006: 103.6 mill.), enabled by a
positive business environment and high order volumes from the Lenzing
Group itself. Sales to external customers came to EUR 68.7 mill.
(2006: 59.0 mill.). Segment EBIT declined to EUR 6.2 mill (2006: EUR
10.1 mill.) as a result of cautious valuation of risks from pending
business transactions and the retreat from marking systems. The
average number of staff was 550.

Lenzing parted with Segment Paper at the beginning of 2008.

Outlook Domestic demand in the emerging markets is considered to
continue its development in 2008, despite a slower US economy, due to
the general rise in prosperity over recent years. The economy in
Europe is expected to weaken briefly without, however, slowing down
to a standstill.

The development of core business fibers will slow down after fiber
boom year 2007 and a good first quarter 2008. Lenzing's good market
position, however, will secure production at full capacity. Largely
stable demand is expected from the core markets of the second main
business field, Plastics. Demand from the construction industry,
however, may decline. Plastics in 2008 will again provide impulse for
the growth of the Lenzing Group.

The full consolidation of the companies acquired in 2007 over the
business year will more than compensate for the deconsolidation of
Segment Paper. Results could come under pressure from a further
weakening of the US dollar or from rising raw material prices.

The Lenzing Group will continue its ambitious expansion program for
cellulose fibers throughout 2008 and beyond with the most
comprehensive investment program in company history. Possible
short-term fluctuations are not going to affect the continuous rise
in the demand for high-quality cellulose fibers in the long-term.

|Consolidated company key figures (IFRS) |2007 |2006 |
|in EUR mill. |prel. | |
|Sales* |1,260.5 |1,042.6 |
|EBITDA* |229.3 |169,3 |
|EBIT* |162.3 |107,8 |
|Net income after minorities |109.6 |83,9 |
|EBITDA margin* % |18.2 |16,2 |
|EBIT margin* % |12.9 |10,3 |
|Equity ratio** % |44.8 |51,1 |
|Staff |6,043 |5,044 |
|Capital expenditure (intangibles, property, |266.8 |105.6 |
|plant and equipment and financial assets) | | |
|Operating cash flow |225.6 |146.1 |

* continuing operations
** Equity incl. government grants less prop. deferred taxes

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

Further inquiry note:

Mag. Angelika Guldt

Lenzing AG

Tel.:+43(0)7672-701-2713

Fax.:+43(0)7672-96301

mailto:a.guldt@lenzing.com

Branche: Chemicals
ISIN: AT0000644505
WKN: 852927
Index: WBI
Börsen: Börse Berlin / free trade
Wiener Börse AG / official dealing