EANS-Adhoc: Lenzing AG / Lenzing and B & C announce plans for Public Offering of Lenzing shares

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Company Information

08.03.2011

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

Vienna/Lenzing, 8 March 2011 - Lenzing AG ("Lenzing") and B & C Group
(together with its affiliates "B & C") are announcing the intention
to conduct an offer of new and existing shares of Lenzing in a
planned "Re-IPO" in Q2 2011.

Lenzing plans to offer new shares from a capital increase of approx.
EUR 75 million to existing shareholders by means of a subscription
offer and to new shareholders with a view to supporting its announced
capacity expansion program. Lenzing´s current 90.5% shareholder B & C
is planning to offer existing shares through a partial sell-down of
its stake. New and existing shares are expected to be offered to
private and institutional investors in Austria and to institutional
investors internationally. Lenzing will apply for a listing of all
new shares on the Vienna Stock Exchange and the inclusion of all
existing and new shares in the Prime Market segment. If implemented
as planned, the contemplated "Re-IPO" is expected to substantially
increase Lenzing´s free float and improve the Company´s long-term
access to the capital market. In particular, the capital increase
would optimize Lenzing´s funding mix for its planned investment
program and future growth. The details regarding the possible offer
size, expected free float and the exact timing of any transaction
will also depend on prevailing market conditions. B & C plans to
retain its active role as a long-term core and majority shareholder
of Lenzing in the future.

B & C and Lenzing have mandated Morgan Stanley as Sole Global
Coordinator for the planned transaction. Morgan Stanley, Deutsche
Bank and UniCredit have been mandated as Joint Bookrunners for the
planned transaction.

About Lenzing Group The Lenzing Group is an international group of
companies 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.

About B & C Group The objective of B & C Foundation, the parent
company of B & C Group, is fostering Austrian entrepreneurship. B & C
Industrieholding GmbH, the management holding of B & C Group, is one
of the largest Austrian investment companies and currently holds,
among 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 A. Porr AG (38.7% of
the voting rights). The management board of B & C Industrieholding
GmbH consists of Dr. Michael Junghans, chairman of the management
board, Dr. Walter Lederer and Mag. Patrick F. Prügger. Further
information on B & C Industrieholding GmbH can be found at
www.bcholding.at.

For more information please contact:

Lenzing AG:
Mag. Angelika Guldt
Head of Corporate Communications
Telefon: +43 (0) 7672 701-2713
E-Mail: a.guldt@lenzing.com

B & C Group:
Dr. Michael Junghans
Chairman of the Managing Board
B & C Industrieholding GmbH
Telefon: +43 (0) 1 533 2 533-16
E-Mail: m.gruensteidl@bcholding.at

Disclaimer: These materials are 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). These materials do not constitute or form a part of any
offer or solicitation to purchase or subscribe for securities in the
United States of America. The shares of Lenzing AG (the "Shares")
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 Shares
have not been, and will not be, registered under the Securities Act
and will not be offered or sold in the United States, except on the
basis of applicable exemptions from the registration requirement.
There will be no public offering of securities in the United States
or anywhere outside of Austria. 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. This information 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.
Any securities orders received prior to the commencement of a public
offer will be rejected. 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.

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) 07672-918-2713
mailto:a.guldt@lenzing.com

Branche: Chemicals
ISIN: AT0000644505
WKN: 852927
Index: WBI
Börsen: Berlin / free trade
Wien / official market