Employee stock program

LANXESS's stock program offers employees an opportunity to buy shares in the company at a discount. The price per share is calculated from the stock market price on a date set by the Board of Management each year around the time of the Annual Stockholders' Meeting, less a discount of 50 percent. This discount is financed by LANXESS.

For the 2008 stock program LANXESS selected April 17, 2008 as the reference date for the stock market price. After deducting the discount, the purchase price was EUR 12,85 per share.

Employees could purchase LANXESS shares till May 30, 2008. They are liable to pay tax on the portion of the discount exceeding EUR 135. Social security contributions are borne equally by LANXESS and the employee.

Shares purchased under the LANXESS stock plan are subject to a three-year lock-up period starting on June 1, 2008. Employees may not sell or transfer their shares during this time.

Announcement of LANXESS AG according to section 14 para. 2 WpHG, Art. 4 para. 2 Regulation (EC) No. 2273/2003

Starting on 1 July 2008 LANXESS AG will acquire 270,098 own shares for the fulfilment of employees’ claims for LANXESS AG shares under an employees’ incentive scheme pursuant to section 71 para. 1 no. 2 AktG. The shares will be solely acquired in the XETRA trading at the Frankfurt Stock Exchange. The purchase price (excluding incidental expenses) may not exceed or undercut by more than 10% the market price of the shares determined by the opening auction on the respective trading date in the XETRA trading at the Frankfurt Stock Exchange. The acquisition of own shares by LANXESS AG shall at the latest be finalised as of 14 July 2008.

Information to the buyback of own shares
LANXESS AG completed the buyback of own shares for the fulfilment of employees’ claims on July 2, 2008. The buyback started on July 1, 2008. Altogether LANXESS purchased 270,098 own shares on the stock exchange. The buyback information are disclosed according to section 14 para. 2 WpHG, Art. 4 para. 4 Regulation (EC) No. 2273/2003 (LANXESS employees stock program).

Summary: Buyback for the fulfilment of employees' claims