LANXESS AG Contact: Daniel Smith Financial and Business Media 51369 Leverkusen Germany Phone +49 214 30-75179 Fax +49 214 30-50691 daniel-alexander.smith@ lanxess.com

News Release

LANXESS Media Day September 15, 2010

Dusseldorf ________________________

Address by

Dr. Axel C. Heitmann

Chairman of the Board of Management LANXESS AG

“Energizing Chemistry for Accelerated Growth”

(Please check against delivery)

(2010-00009e)

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Good morning, ladies and gentlemen, and welcome to LANXESS Media Day. Thank you for joining us. We will do our very best to make this an informative and rewarding day for you. I can certainly promise that our outlook will be more optimistic now than it was at the close of 2008 – at the height of the global economic crisis. At that time we demonstrated that LANXESS was well-equipped to weather the storm. Today, on the wings of favorable first and second quarter earnings and a promising third quarter, we will show you how we intend to energize chemistry to accelerate growth. Ladies and gentlemen, we are now on the path to growth. During this presentation, I will walk with you along that path, with a look at:

! where we have been ! where we are today ! and where we expect to be five years from now

First I will explain how we have built a solid platform for growth. I will then discuss how we are now in a favorable position to capitalize on megatrends. Next I will outline our strategy for sustainable growth. Finally, I will present a road map for our way forward. We live in uncertain times.

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Nevertheless, I will present specific reasons why we have a promising outlook for LANXESS and have set ambitious targets for growth. Here is a snapshot of our growth from our beginnings. You can see how we have gone from:

! transformation ! to growth ! to crisis ! and rapidly back to growth

Most importantly, you can see that in the past six years – despite a difficult start and major crisis – we expect to have increased our EBITDA pre-exceptionals by roughly 80 percent by the end of 2010. So LANXESS is a very healthy company. The leap from the 2009 crisis year to our strongest year ever in 2010 shows that our focus, consistency and discipline can deliver the momentum needed to achieve sustainable growth. You see, we faced tough times from the day we were born. Six years ago, when LANXESS was formed as a spinoff, we were greeted with a good deal of skepticism by our stakeholders. Some of it was justified. We had underperforming and non-performing businesses. Our prospects didn’t look at all bright. We knew we had to:

! transform the company ! shed unproductive businesses ! and focus on what we did best

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We had to make tough decisions and take decisive action to put us on the path to profitable growth. We took those actions and, as a result, silenced the skepticism. During those early years, LANXESS established itself as a key player in the global specialty chemicals industry. And because we made those tough decisions in 2005, we were prepared for the crisis in 2008. Last month, when we issued our strong second-quarter earnings, a good many analysts wrote positive reports about LANXESS. And I must confess – we were all validated by their comments. Ladies and gentlemen, today we have a strong platform for growth. How did we accomplish this? We developed and implemented a four-phase strategy. It called for performance improvement in all our businesses. To achieve this, we built a more entrepreneurial management system. This gave the managers of our business units clear-cut global responsibility. That led to considerable improvements in performance. We also knew we had to fix some businesses that were either unprofitable or inconsistent with our long-term growth prospects. Targeted restructuring was absolutely crucial to the success of LANXESS.

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Our strategy for optimizing the LANXESS portfolio relies on three pillars:

! a focus on the highest-quality products ! an unrelenting commitment to price before volume ! and an unshakable belief in targeted innovation

Each of these pillars is an essential part of the LANXESS model. Lastly comes our focus on acquisitions, which I will touch on later. A key aspect of our strategy was to focus on the fastest-growing markets for our products, especially in the BRIC countries. This has been central to our performance, and to the growth we have achieved. We decided at an early stage to strengthen our asset base over the long term in the booming BRIC nations – particularly Brazil, India and China. We pursued this goal even in the midst of transforming our company. This strategy has been validated by the fact that these nations were the first to emerge from the crisis. They are all now far above pre-crisis levels. By 2012, more than 38 percent of our capital expenditures will have been directed toward Asia and Latin America, compared with less than 20 percent in 2005. Our asset base will grow even faster in the BRIC countries themselves in the coming years. This shift in focus can already be seen in the sales results for BRIC, which are expected to have doubled as a percentage of group sales by the end of 2010. I mentioned some of the tough decisions we made in our early days. We have transformed LANXESS into a more profitable company by divesting certain businesses that we could not grow further. These

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included Paper Chemicals, Textile Processing Chemicals and Lustran Polymers. Our timing was fortunate, and we were able to successfully divest these units well before the crisis, while simultaneously finding good homes for them. Following these moves, we made selective, bolt-on acquisitions for our Inorganic Pigments, Leather and Basic Chemicals businesses and in connection with our various synthetic rubber units. All these transactions served to reposition LANXESS as one of the top suppliers in each of those businesses. Our five largest acquisitions have contributed roughly 600 million euros in annual sales to our group. In addition, all acquisitions were EPS-accretive within their first two years. Notably, these transactions took place in the emerging markets of Brazil, China and India. In 2008, we made our largest acquisition – Brazil’s Petroflex – a move that added enormous strength to our position in one of the world’s fastest-growing rubber markets. Our acquisitions of Gwalior Chemicals and Jiangsu Polyols show that we continued to pursue our acquisition strategy notwithstanding the economic downturn. We have since integrated these carefully chosen acquisitions quickly and effectively. So you see, we have a successful track record in M&A. Earlier I mentioned that targeted innovation is a key reason for our success. At LANXESS our innovation efforts are focused on meeting specific and concrete customer needs.

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We have consistently grown our innovation budget and headcount – even during the crisis years of 2008 and 2009. We have strong incentives to keep doing this. You will hear more later on this subject from our business unit heads. Innovation is really the lifeblood of the chemical industry. It is indispensable to any chemical company’s global competitiveness. Germany as a whole possesses few natural resources and must rely on the technical skills of its people in order to excel in the world economy. Thanks to those skills and a long history of innovation, chemicals represent the fourth-largest industry in Germany and one of the great export engines of the economy. So it is to be expected that a major chemical company would have a strong culture of innovation. But there are some aspects of our innovation initiatives, which are unique to LANXESS. For instance, most of our R&D is conducted within each of our 13 business units. This allows each unit to conduct practical research that can meet specific customer needs. It is important to note that LANXESS places an equal focus on innovation in both products and processes. Some of our most remarkable advances have involved finding innovative and highly efficient new ways to manufacture established products. Our work in neodymium catalysts is a good case in point. We have also developed close partnerships with major research centers and universities in Europe, Asia and North America.

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In 2009, we oversaw an increase of eight percent in the number of employees working in innovation. LANXESS has six innovation centers worldwide, including China and Brazil. Currently, we are partnering with several institutions with a focus on environmentally friendly products and processes. One exciting example is our investment in Gevo, a company formed by American researchers to develop applications for a revolutionary new fermentation process. The company’s breakthrough technology can efficiently produce isobutanol from renewable resources. We are excited by this advance because we can then process isobutanol into isobutene, a key raw material in the manufacture of butyl rubber. The biological and chemical aspects of this process are both still under development, but this investment holds great promise. In a time of resource scarcity, it is a good example of how we can innovate to reduce our dependence on fossil fuels. Other investors are also enthusiastic about this venture, including France’s Total Group and Richard Branson’s Virgin Group. Ron Commander, who runs our butyl business, will have more to say about it later. Our dedication to research and development is reflected in the quality of our product portfolio. And our sales and marketing staff has been doing a fine job of demonstrating the value proposition that our products can represent to customers. When you specialize in producing innovative, premium products that meet specific customer needs, you can achieve a fair price with good margins for your products, and you can pass through changes in the cost of raw materials.

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That is what we do at LANXESS. As a chemist, I have developed the habit of analyzing the elements that make up any compound, product or even a company. So it should come as no surprise that I have analyzed our own enterprise in the same way. In fact, that is why I like to talk about the DNA of LANXESS. Our DNA is something we developed in our early days, and it remains unchanged today. Fortunately, I do not have to map out any nucleotide sequences to tell you what makes us tick. For the LANXESS code is very straightforward and really quite simple. There are four key elements to our DNA. One – our compelling portfolio of technology-driven businesses. These businesses are focused on creating innovative products and solutions that meet clear customer needs and provide green solutions. Two – regional diversity. We have always believed in targeting our major investments at the fastest-growing markets. That is why our BRIC strategy is a key element of our DNA. Three – leadership aspiration. Our team is driven by the goal of positioning all of our product lines at the very top of their markets. And we place an equal priority on opening up new markets for those products. Our talented managers bring a keen focus to putting their businesses on top and keeping them there.

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And that brings us to management excellence, which is the fourth prominent element in our makeup. Our success depends on management teams that thoroughly know their businesses. That is why we have developed entrepreneurial business units run by self-starting managers. We will hear from some of them today. So, ladies and gentlemen, our DNA has all the elements we need. It is who we are. It is what defines us. And it is why we are confident as we journey on the path to continued profitable growth. All the elements of that DNA were brought into play when the crisis struck in 2008 – and I like to think that is why we emerged so quickly and strongly from the downturn that hit our industry. When the crisis came, we did not falter. Our response was rapid, comprehensive and effective. We set up a central crisis management team to coordinate global corrective measures. We understood that rapid decision-making was critical. There were two major initiatives that drove our response and recovery. The first was the establishment of our global “Challenge” program to mitigate the effects of the crisis. It consisted of a combination of stringent technical measures and temporary compensation reductions.

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The Challenge program set clear targets and involved every individual who works at LANXESS. All employee groups worldwide, including the Board of Management, helped to achieve the necessary cost efficiencies by accepting significant reductions in fixed and variable compensation. This allowed us to keep our strong, highly skilled workforce on board and enabled us to resume normal operations with the rebound in the market. The approach also created a spirit of workforce solidarity that has been core to the success of our company. It is a point of pride that we always strive to be fair, direct and transparent with our employees. Now that the situation is improving, our people are aware that they will prosper along with the company. We are pleased to say that business has already recovered enough to allow us to shelve most of the Challenge program. The second key factor in our handling of the crisis was flexible asset management. This enabled us to rapidly scale production to the decline in demand and to reduce our costs for raw materials, energy, infrastructure and logistics. I like to call this: “variable-izing” our fixed costs, and it has offered us some useful lessons. Above all, we avoided unnecessary production resulting in excess inventories that would otherwise have led to lower prices. In addition, over 120 specific austerity projects were initiated during the crisis. And we quickly saw results.

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Our actions produced total savings of 290 million euros in 2009 and 2010. We also reduced our debt, increased our liquidity reserves, and strengthened our balance sheet. Most importantly, we managed our austerity program while maintaining our fundamental business approach. We accomplished all of this without abandoning our core strategy of price before volume while simultaneously increasing our R&D spending. Were all of these measures worth the effort? Just before the crisis hit in 2008, we had a very strong first half of the year. Our first-half 2010 results show that we have come back stronger than ever – with higher sales, EBITDA and net income. This is the sort of outcome that can be achieved when you face a crisis with:

! discipline ! focus ! rapid response ! and workforce solidarity

And we are fortunate to have such an excellent and committed workforce. As of the second quarter of 2010, LANXESS’ sales are broadly distributed around the world. But the regional recovery in sales in Asia and Latin America has been substantially stronger than in EMEA and Germany.

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In Asia, sales are now well above what they were before the downturn, while Europe has not yet recovered to 2008 levels. So our strategy of focusing on growth in China, India and Brazil is paying off now. Obviously, this is where extraordinary opportunity exists for us. So, ladies and gentlemen, those are the elements of the platform for growth that we have built at LANXESS. It consists of: ! a higher-margin portfolio ! a flexible and competitive cost structure ! geographic diversity, with a focus on BRIC ! and the culture of performance-driven entrepreneurship that has

helped put us where we are today. Now let me describe what we see ahead on our path to growth. One of our most promising qualities is our ability to capitalize on four global megatrends. The world is becoming more mobile. The world needs more food. The world’s population is continuing to shift to major cities. And the world needs more safe and clean water. These are some of the great global megatrends that will continue to affect us all. LANXESS is actively engaged in producing the innovative products and solutions that the industries of the world require to face a future driven by mobility, agriculture, urbanization and water.

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Increasing mobility, especially in China, India and other large, developing countries, is one of the most powerful megatrends. And LANXESS’ leading, world-class rubber technology has made us an integral player in this field. Synthetic rubber was invented in the laboratories of our predecessor company 101 years ago, and today we are the world’s leading supplier of this incredibly versatile material. We are also the leader in rubber for the performance and high-performance tire markets, which are the fastest-growing segments in the tire industry. This plays to LANXESS’ greatest strength. We are the leader in high-performance neodymium polybutadiene rubber and solution styrene-butadiene rubber – which offer the performance characteristics needed to produce safer, more energy-efficient tires. Now is the very best time to be a leader in high-performance rubber. Last year the European Union approved a regulation stipulating that new tires sold in Europe will have to be labeled for fuel efficiency, wet grip and noise emissions. This new level of transparency will empower consumers to make an informed choice between conventional tires and high-performance, environmentally friendly “green” tires. Tire makers in Japan voluntarily introduced comparable labeling at the beginning of this year, and South Korea and the United States are evaluating legislation similar to the European Union. These fundamental changes will create new demand for green tires, which can only be made with high-tech synthetic rubber and

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additives. Our advanced technologies in Nd-PBR and Solution-SBR have an especially important role to play in this green tire revolution. That is why we are globally expanding our high-tech rubber production facilities. Of course, rubber products are not the only way that LANXESS is finding opportunity in the global mobility megatrend. Everyone has noted the growing need for lighter, more fuel-efficient cars. Our Semi-Crystalline Products business unit is working with the automotive industry to open up new frontiers in fuel efficiency, crash resistance and car design. For example, our Durethan line of polyamides is being used to create injection-molded body parts in some of the latest Audi models. This can increase strength and reduce weight in certain structural components by up to 50 percent. The growing need to expand the world’s food supply is also on the LANXESS agenda. As the world’s population keeps racing upward, grain production must continue to grow. We offer a wide range of products to help the agricultural industry increase production and protect crops. Underlying challenges to the food supply are increasing. LANXESS offers the industry products that address these needs.

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Our Saltigo business unit is a leading supplier of precursors for crop protection chemicals and is now boosting capacity to meet growing demand. Our Functional Chemicals and Basic Chemicals business units also work with the industry. Among their many products are numerous important building blocks for agrochemicals. Our 2009 purchase of India’s Gwalior Chemical Industries added to our position as a leading global producer of certain components for this sector. Our stake in the agrochemical market will continue to grow as the needs of the industry grow. Urbanization is another megatrend that is very much in line with our products. Urban populations are expected to increase by 40 percent in the next 10 years. China in particular has plans to build dozens of new cities to accommodate its urban population boom. The shift to cities and the growth of the middle class offer many opportunities to LANXESS. We make products for the construction industries that will be used in new high-rise buildings, stadiums and countless infrastructure projects. One product line that has been steadily growing in popularity throughout the world for more than eighty years is our Bayferrox brand.

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It makes cities more colorful. Skyscrapers, streets and bridges today are all made of concrete. New grades of Bayferrox inorganic pigments can make that concrete appear colorful and inviting. It is in such demand today that our plant in Germany, the largest of its kind in the world, has been breaking all production records this year. It represents just one example of how LANXESS products serve the major industrial customers who are meeting the needs of the urbanization megatrend. The last megatrend I will mention involves water. The scarcity of clean water is a daunting global problem. Population growth, pollution and climate change will make water nearly as valuable as oil in the next few decades. Many parts of the world have already witnessed severe pressure on ecosystems and human health. Studies show that water demand will outstrip current supply by roughly 40 percent in 20 years. This gap must be closed, and LANXESS is one of the companies working hard to close it. LANXESS products are used worldwide to treat water and ensure that water resources are used efficiently. Our products and processes are used to purify drinking water, wastewater and industrial process water. To draw attention to this critical issue, we announced LANXESS Water Year 2010. This initiative involves activities and seminars at our sites around the world, and special school projects in Africa, India, Germany and the United States.

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We are totally committed to doing our part to close the developing shortfall in the water supply. High-performance ion exchange resins from our Lewatit family of products are playing an important role in addressing water issues. These resins remove toxic impurities from drinking water and save water through recycling. We are presently stepping up our global activities in this area. Ladies and gentlemen, I have now described our platform for growth and the megatrends that we will be capitalizing on at LANXESS. Now I would like to outline our growth strategy going forward. Our primary focus will continue to be on organic growth. That means we will be growing our profitable existing businesses through product innovation, improvements in process efficiency, capacity and pricing power. Our organic growth strategy is to build on our strengths and to invest in our most profitable businesses in our fastest-growing markets. We are firm believers in the value of investing in products and businesses that are already working well for us. But we also remain very interested in seeking out attractive opportunities for external growth . In other words, we will continue to make targeted acquisitions that can build on our existing portfolio of businesses. On the organic growth front, we are currently undertaking several important investments.

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The state-of-the-art butyl plant we are building on Jurong Island in Singapore represents our single largest investment to date. It will come on-stream early in 2013. We are engaged in several major debottlenecking efforts – at our butyl facility in Belgium and at our Nd-PBR facilities in Germany, the United States and Brazil. We are also expanding our caprolactam facility in Antwerp, Belgium. And we are investing in our high-tech plastics business in Wuxi, China, and in a new facility in Jhagadia, India. At our site in Bitterfeld, we are now creating a new production facility for membrane filtration technology that will enable us to offer a new class of water treatment products by 2011. This technology represents a rapidly growing market that is already valued at over one billion euros. These are a few of our ongoing investment projects. Earlier I discussed the importance of our Nd-PBR rubber production for high-performance tires. We are expanding our existing facilities across the globe. We are also conducting a major feasibility study for a new, world-class Nd-PBR facility in Asia. We expect global annual growth for Nd-PBR to be roughly 10 percent. That means demand will exceed supply by 2014. LANXESS is a leader in this important technology. And we will strengthen that position and fuel our growth by developing additional capacity in Asia. Ladies and gentlemen, we will be making our final decision on this new plant, with a capacity of 100,000 to 150,000 tons per year, within the next six months.

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You have seen that we are aggressively pursuing opportunities for organic growth. Now I want to turn to our acquisition strategy. We are on the lookout for small to mid-sized businesses that can strengthen our leadership positions in our existing businesses. Our acquisitions of Petroflex in Brazil and Gwalior Chemical in India are good examples of what we mean by strengthening our leadership positions in industries in which we already have great strength. We are also on the lookout for attractive, mid-sized businesses and technologies that can broaden our existing portfolio. Our purchase of Jiangsu Polyols in China is a useful example. The company produces important building blocks for the production of resins, polyurethanes, lubricants, paints and coatings. These are the kinds of companies that are a great fit with LANXESS. We are optimistic about the long-term trend towards environmentally sustainable lifestyles. Today our industry is heavily invested in creating the products that will minimize human impacts on the natural world. At LANXESS, we firmly believe in the importance of meeting environmental challenges. We are dedicated to minimizing our own impacts while doing our utmost to provide the sustainable solutions that are in ever greater demand. The chemical industry remains one of the heaviest users of energy resources and, as such, has a vital role to play in conservation. So in many respects, conservation is an intrinsic part of our license to operate. We believe that investing in sustainability makes sound financial sense as well as being a shared responsibility.

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This is why LANXESS is committed to promoting resource efficiency in all of our products and processes. Ladies and gentlemen, there are many compelling reasons for our optimism about the future and for the ambitious growth targets we have set for our company. Our financial future largely depends on the growth of the principal industries that we serve. And our key industries all have excellent prospects. Our largest volume of sales comes from the tire industry, representing roughly 25 percent of turnover. And that industry expects annual growth of 5 percent – driven by the BRIC countries where we have focused so much of our production and marketing. The situation is also positive for the chemical industry, our second-largest customer. The global auto industry is expected to experience strong growth in the next five years. In all the other major industries we serve – construction, agriculture, leather, water and others – prospects look bright. And BRIC will be leading the way. This can only mean good news for the growth prospects of LANXESS. At the beginning of my presentation today I shared that we increased our EBITDA pre-exceptionals by 80 percent in our first six years, including the crisis year of 2009. And I shared with you how we did it.

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Overall, it was a combination of: ! premium products ! global cost competitiveness ! active portfolio management ! a price-before-volume strategy ! product and process innovation ! a focus on BRIC ! disciplined organic and external growth ! effective crisis management ! and sound financial discipline

These have proven to be a winning combination. And because we are confident in what we have built, I am prepared to present the aggressive growth target that we have now established for the next five years. Ladies and gentlemen, we are setting an ambitious goal for our company: An increase in EBITDA of 80 percent to a total of roughly 1.4 billion euros in 2015. This target is definitely aggressive. But it is achievable. And it will take our company and our businesses to a whole new level. How do we intend to accomplish this? It does not actually require any revamping of our structure or strategy.

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So, our strategy for the next five years will largely be based on the same proven toolbox we have used before. This includes a reliance on our strong portfolio of products. We will continue to capitalize on opportunities in BRIC countries. And we will extend our program of strengthening and complementing our current business portfolio. Of course, no projection can be etched in stone. We live in a volatile world. But I am confident that we can meet this goal based on today’s business environment. This is a major milestone for our enterprise. Eighty percent EBITDA growth in the next five years. We have what it takes to get there. We grew our EBITDA in the company’s first six years by relying on a combination of restructuring and self-help initiatives, and a balanced mix of organic and external growth. Over the next five years, we will pursue a similar blend of organic and external growth to achieve that increase in EBITDA. A ratio of two-to-one organic to external worked well for us in the past. And we will continue to emphasize organic over external for the next five years. We will also continue to evaluate every project thoroughly on its own merits. We will not overpay for growth of any kind, and we will maintain our commitment to efficiency in all our operations.

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Our philosophy has not changed. And our track record speaks for itself. Here are some of the specifics for how we will meet this goal: A substantial part of the EBITDA growth will be met through projects that have been approved, announced and are now well under way. I have already outlined some of these for you today. Our strongest growth driver will continue to be our Performance Polymers segment, with its rubber and plastics activities. Other sources of growth, especially those related to the agriculture, urbanization and water megatrends, will come from expanded activities in our Advanced Intermediates and Performance Chemicals segments. Additional initiatives will be identified and executed in line with our trademark discipline. These will contribute to meeting our goals in a focused, step-by-step process. Every one of our businesses will be expected to contribute to this objective. We have given our managers their marching orders for the next five years. Those orders call for each business to generate an EBITDA compound annual growth rate of at least five percent. Our managers will receive all the support they need to achieve these goals. We will bring to bear all of the proven tools we have at hand to enable the growth of our businesses. And we are confident that every one of our enterprises is well-prepared to accomplish this task. Ladies and gentlemen, this is our target: 1.4 billion euros EBITDA pre-exceptionals in 2015.

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Is this an ambitious goal? Of course it is. But it is a goal we know how to achieve. Yes, it is an ambitious program. But we can get there. We have the right products. We have the right people. We have the right DNA. We have what it takes to grow successfully into the future. Thank you very much. Forward-Looking Statements. This news release may contain 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.