Lundberg added a round of 68 to his opening 67 at Diamond Country Club in Atzenbrugg, Austria, to finish day two on nine under par, one shot ahead of playing partner Lee Slattery.
Despite a shoulder injury Slattery carded an eagle, five birdies and one bogey to return a course record round of 66, with Paraguay's Fabrizio Zanotti on seven under par following his 68, a round which was matched by Korea's Sihwan Kim for a six under par aggregate total.
Joost Luiten is in with a chance of becoming the first player to mount a successful title defence in the Ã¢Â‚Â¬1 million tournament after a flawless round of 67 moved the Dutchman to five under par alongside Wales' Rhys Davies.
Only two Australians were in the field. Brett Rumford led them and is 18th position although Jack Wilson playing in his first European Tour event in Europe missed the halfway cut by just one.
Former Victorian, Daniel Gaunt, now an English citizen, made the cut but is well back.