LANXESS Invests Around Six Million Euros in Capacity Expansion at Bitterfeld Site

LANXESS invests around six million euros in capacity expansion at Bitterfeld site

IAB Ionenaustauscher GmbH on course of growth

Leverkusen – Chemicals group LANXESS is set to invest some EUR 6 million in the expansion of its ion exchange resin production facility in Bitterfeld up to the end of 2007.“With our highly developed technology for manufacturing monodisperse products, we are right at the forefront.Owing to increases in demand we are aiming once again to expand capacity significantly,” said Dr. Gerold Schade, Managing Director of LANXESS’s wholly owned subsidiary IAB Ionenaustauscher GmbH, explaining the planned investment.The ion exchange resins from Bitterfeld are marketed under the trade name Lewatit®.

With this investment, LANXESS is going well beyond its original commitment of EUR 1.8 million.In addition to expanding production capacity, the goal is also to further improve cost efficiency by optimizing the production process. “The IAB is a good example of how a rigorously implemented structure can safeguard long-term success,” continues Schade.“In line with the LANXESS strategy we have lean structures in Bitterfeld which enable us to operate economically, safely and in an environmentally conscious way.”

The Lewatit® plant in Bitterfeld is one of the world’s largest production facilities for ion exchange resins, which play an important role in water conditioning in the home and in industry.Their broad range of everyday applications include the decalcification or softening of water, in dishwashers for example.Ion exchange resins are also essential for industrial production.They are used to prepare and treat boiler-feed water and condensation from industrial steam plants – such as in power stations for utility supply.Water softening and demineralization are thus key fields for ion exchange resins.

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Leverkusen,November 2006

bol(2006-0219e)

Forward-Looking Statements

This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management.Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.