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LANXESS 23/02/2007

Hydrazine hydrate facility in Weifang likely to be shut down for several months following an operational incident

Leverkusen – Chemicals group LANXESS has halted production of hydrazine hydrate in Weifang, China, following an operational incident. The standstill is likely to last several months. For this reason LANXESS has declared a state of force majeure to its customers in the Asia-Pacific region.

LANXESS has a property and business interruption insurance with the usual deductibles and cover for the industry. The company currently predicts that the EBITDA pre exceptionals will be diminished by a medium one-digit million euro sum.

The Weifang facility is operated by a joint venture between LANXESS and its Chinese partner Weifang Yaxing Chemical Company and belongs to the Functional Chemicals business unit. LANXESS holds a 55 percent share in the joint venture founded in Sepetmber 2004. Hydrazine hydrate is used, for example, as a starting product in the agrochemical, pharmaceutical, automotive and leisure industries.

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.