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Lenzing and Zimmer Conclude Licensing Agreement

November 29, 2005

Lenzing and Zimmer AG, an enterprise of the GEA Group, have concluded a licensing agreement on the extended application of lyocell fiber technology, amicably bringing an end to previous differences concerning patent issues. Zimmer AG may use some Lenzing Group key patents for the construction of lyocell plants.     "The licensing agreement emphasizes the engineering and design competence of Zimmer and strengthens Zimmer's market position in textile fiber plant engineering " said Winfried J. Krämer, Chief Executive of Zimmer AG.  “The development of the Lyocell technology provides the opportunity to both partners to react flexibly and innovatively on future market requirements.”

Lyocell fibers are made of the renewable raw material cellulose. The fiber combines cellulose fiber characteristics, such as ease of wear and optimum moisture absorption, with synthetic fiber characteristics, such as high strength durability and ease of care. Both Lenzing and Zimmer own patents on their processes.
Lenzing is the global leader in the large-scale industrial production of lyocell fibers with an annual capacity of 120,000 tons at its three sites in Austria, the U.K. and U.S. and markets lyocell under the brand name Tencel. Zimmer is a technology-oriented plant engineering and construction company with proprietary processes and technologies as well as licensed technologies for the fiber industry. Zimmer’s lyocell technology has successfully been developed and proven in its own pilot plant located in Germany.

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