EANS-News: Lenzing AG / Lenzing update on Hygiene Austria CNE

4/2, 10:00 AM (Source: euro adhoc)
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Joint Ventures/Cooperation/Collaboration

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* Quality of the delivered masks checked and assured
* Certification granted following audit
* Top management replaced
* New call for tenders to provide personnel services
* Lenzing is transferring its shareholding to Palmers to ensure continuity

Lenzing - Over the past four weeks, Lenzing AG has worked intensively together
with Palmers Textil AG to address the allegations concerning Hygiene Austria LP
GmbH. Lenzing concluded that measures had to be taken immediately in light of
the state of its public image. The following steps have been or will be taken in
cooperation with Palmers Textil AG:

1. There is no longer any doubt about the excellent quality of the masks: The
     masks manufactured in Austria as well as those from China have been
     examined once again and judged to be technically flawless in every respect.
  2. CE certification has been secured: In another audit carried out by the
     Hungarian test center Gépteszt on March 25, 2021, the quality of the
     production and the type examination was confirmed once again. This means
     that the future certification of the FFP2 masks produced by Hygiene Austria
     is ensured by the CE mark.
  3. The managing director positions have been filled with new people: Effective
     April 2, 2021, two experienced, external executives, namely Claudia
     Witzemann and Michael Schleiss, have been appointed to serve as the new
     managing directors of Hygiene Austria.
  4. A new tendering procedure for providing personnel services will be held
     without delay: The new top management will be able to rely on temporary
     workers that meet the highest quality demands.
  5. Lenzing and Palmers have agreed that the principle underlying the founding
     of Hygiene Austria - to establish an excellent company to supply protective
     masks for Austria - must be upheld as quickly as possible and in a way that
     is also sustainable.
  6. Along with the performance specifications needed to ensure the sound and
     continuing existence of the company as a going concern, the two
     shareholders have agreed that Lenzing's stake in Hygiene Austria will be
     transferred to Palmers. Lenzing will waive its right to a suitable purchase
     price for the time being in order to ensure the continued existence of
     Hygiene Austria in line with its founding principle. In turn, this should
     enable Palmers to provide further funding to the company.

"Following several extremely intense weeks, I am pleased to report that we have
pinpointed the primary deficiencies and have made every effort to deal with them
in cooperation with Palmers. Accordingly, we have put in place a framework for
consistently professional management, outstanding quality assurance, and good
working conditions", said Stephan Sielaff, member of the Managing Board of
Lenzing AG who was charged by the Supervisory Board to review and deal with the
events related to Hygiene Austria.

Lenzing stands for strong values and an internationally recognized process and
governance system. However, mistakes were made in implementing the business idea
of Hygiene Austria. The Managing Board of Lenzing AG will draw the necessary
lessons for the future in consultation with the Supervisory Board. For example,
a comprehensive investment management system will also be established for small
projects.

Further inquiry note:
Lenzing Corporate Communications
c/o Vetter & Partner
Johannes Vetter
E-mail:   lenzing@vetterpartner.com 
Phone:    +43 664 88578 224

end of announcement                         euro adhoc
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issuer:       Lenzing AG

A-4860 Lenzing
phone:        +43 7672-701-0
FAX:          +43 7672-96301
mail:         office@lenzing.com
WWW:          http://www.lenzing.com
ISIN:         AT0000644505
indexes:      WBI, ATX
stockmarkets: Wien
language:     English

EAX0001    2021-04-02/10:00

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