Bangkok--28 Jun--LANXESS With costs of a magnitude of roughly EUR 400 million, the new production facility would be the largest investment in the company’s history / Locations under consideration include sites in Singapore, Malaysia and Thailand Chemical group LANXESS seeks to expand its global position in the butyl rubber market and is pursuing plans to build a new facility in Asia. “This would be the largest investment in the history of our company,” said LANXESS Management Board Chairman Axel C. Heitmann during a visit to Singapore. In the next few months we will hold talks with possible host locations to determine the feasibility of the construction of a new plant. Should we decide upon a location, we will be able to bring the facility on stream in 2010.” LANXESS projects an investment of a magnitude of EUR 400 million. Negotiations at three possible sites, Singapore, Kuantan in Malaysia and Map Ta Phut in Thailand, will begin immediately. In the last several months, LANXESS has analyzed sites across Asia to assess their feasibility. LANXESS is focused on satisfying the growing demand for butyl rubber in Asia. Tire production will continue to be the main use of butyl. LANXESS’s potential investment is designed to serve tire production which is increasingly shifting from the US and Western Europe to Asia. Additionally, the capacities of local Asian manufacturers are rapidly increasing. LANXESS intends to increase sales in Asia in the future through continued cooperation with global customers and pursuing growth with local partners. Following the completion of the expansion of the Zwijndrecht site in Belgium and the expansion in butyl rubber capacity currently being executed at LANXESS’s site in Sarnia, Canada, the commissioning of a new facility in Asia could be another milestone on the road to further profitable growth. The Butyl Rubber Business Unit belongs to the Performance Rubber segment, which achieved total sales in 2006 of EUR 1,776 million. LANXESS is one of the leading European chemicals suppliers, with 2006 sales of EUR 6.94 billion and more than 16,000 employees in 18 countries. The company is represented at around 50 sites worldwide. The core business of LANXESS is the development, manufacture and sale of chemicals, rubber and plastics. Note for editors: All our news releases and photos can be found on the LANXESS homepage at www.lanxess.com under the ”Press” button. 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. Click for photo release at www.thaipr.net