EANS-Adhoc: Lenzing AG / Launch of capital increase and sale of existing shares by B & C ("Re-IPO")

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Company Information

29.05.2011

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

Vienna/Lenzing, May 29, 2011 - Today, Lenzing AG ("Lenzing" or the
"Company") and B & C Iota GmbH & Co KG, as well as B & C
Industrieholding GmbH, a subsidiary of B & C Privatstiftung (together
with its consolidated affiliates, the "B & C Group" or "B & C"), are
announcing their decision to conduct an offering of new and existing
shares of Lenzing in a planned "Re-IPO".

This "Re-IPO" comprises an offering of new shares from a capital
increase of Lenzing with subscription rights ("Rights Offering") and
the offering of existing shares by B & C, Lenzing´s majority
shareholder.

Lenzing´s management board, with approval of Lenzing´s supervisory
board, has resolved to publicly offer 825,000 new shares in the
Rights Offering at a subscription ratio of 31:1, i.e. for every 31
existing shares held, one new share can be acquired. The new shares
will be fully entitled to dividends starting from January 1, 2011.

Concurrently with the Rights Offering, existing shares held by B & C
in an amount of up to 5,486,217 shares (up to 6,034,838 including
greenshoe option) will be offered. In any event, B & C will sell such
amount of existing shares to ensure a minimum free float of
approximately 33% (not taking into account the greenshoe option) and
a maximum free float of 35% (including the exercise of the greenshoe
option) post-transaction.

Existing shares and new shares for which subscription rights are not
exercised will be offered in an international offering
("International Offering"; together with the Rights Offering, the
"Offering"), which will comprise (i) a public offering to retail and
institutional investors in the Republic of Austria and (ii) a private
placement outside the Republic of Austria to selected institutional
investors.

Both the subscription price for new shares and the offer price for
existing shares will be determined following a book-building process.
The price range for the book-building process has been set at EUR92
to EUR108 per offer share.

Subject to approval of the prospectus by the Financial Market
Authority (FMA), which is expected for May 30, 2011, the
book-building, offer and subscription period will start on May 31,
2011 and is expected to end on or about June 15, 2011. There will be
no trading of subscription rights organized by Lenzing or any person
acting on its behalf.

The subscription and offer price will be announced at the end of the
book-building period on or about June 15, 2011. Trading in the new
shares on the Vienna Stock Exchange (Prime Market) is expected to
start on or about June 17, 2011.

If implemented as planned, the contemplated "Re-IPO" is expected to
substantially increase Lenzing´s free float and improve its 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. B & C plans to retain its active role as a
long-term core and majority shareholder of Lenzing in the future.

For further details, please refer to the offering prospectus, which
is expected to be published on or about May 30, 2011.

Disclaimer: 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 as well
as at UniCredit Bank Austria AG, Schottengasse 6 - 8, 1010 Vienna,
Raiffeisen Centrobank AG, Tegetthoffstraße 1, 1015 Vienna, and
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft, Europaplatz
1a, 4020 Linz during usual business hours, and on the Company´s
website under http://www.lenzing.com/kapitalerhoehung/. 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 U.S.
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 statement 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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issuer: 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, Prime Market
stockmarkets: free trade: Berlin, official market: Wien
language: English

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, Prime Market
Börsen: Berlin / free trade
Wien / official market