BASF acquires stake in U.S. e-commerce group ChemConnect

Raw materials purchasing via the Internet

LUDWIGSHAFEN, Germany, February 15, 2000 - BASF announced today that it will acquire a stake in the U.S. e-commerce group ChemConnect Inc., of San Francisco, California, and begin a strategic initiative to purchase via the Internet raw materials for BASF.

As part of this initiative, ChemConnect will become BASF's preferred partner in its efforts to gradually extend its use of the Internet as a vital instrument for obtaining raw materials.

"BASF is the world's largest purchaser of chemical raw materials. In a very short time, we are going to buy a substantial portion of our raw materials through the virtual market of ChemConnect, which is called the World Chemical Exchange," said Wolfgang Mörike, President of the Raw Materials Purchasing division at BASF Aktiengesellschaft, the parent company of the BASF Group.

By acquiring a stake in the company, BASF will become a member of ChemConnect's Technology Roundtable and will be able to participate in the technological development of this promising form of trade.

Transactions involving chemical products worth about €10 billion currently take place worldwide on the Internet and are expected to rise to more than €200 billion within the next five years.

"The future belongs to the Internet market. It creates a new transparency, for sellers as well as for potential buyers, and results in fast, cost-efficient trading. With its World Chemical Exchange, ChemConnect covers all branches of the chemical industry worldwide and has established itself as a leading supplier in this field, says Max Dietrich Kley, deputy chairman of BASF's Board of Executive Directors and the company's chief financial officer, and adds: "Our strategic partnership will enable us to play an active role in establishing this promising market as well as in developing the necessary technology. We are among the pioneers in the European chemical industry when it comes to e-commerce."

"I am particularly pleased to welcome BASF as a Charter Member of ChemConnect because they were one of the earliest and most enthusiastic traders on the World Chemical Exchange", said John Beasley, the chief executive officer of ChemConnect. "As BASF continues to expand its operations, the World Chemical Exchange will continue to be an important component of its worldwide e-commerce strategy. In a very short period of time, we at ChemConnect have proven reliability and expertise: We provide global scope, critical mass, knowledge of the industry, and technological power to meet the growing needs for e-commerce trading opportunities for chemical industry companies, of all sizes, around the world."

ChemConnect, which was founded in 1995, has the world's biggest Internet marketplace for chemical products and plastics through its World Chemical Exchange. International manufacturers, buyers and dealers use the open and neutral virtual market place to find trading partners, monitor price developments and execute online transactions. North American chemical companies in particular already have acquired stakes in ChemConnect. Further information about the company can be obtained at the ChemConnect website under www.chemconnect.com.

BASF is a return-focused global company generating long-term growth and profitability from its activities in chemicals, health and nutrition, and oil and gas. The company's product range includes high-value chemicals, plastics, dyestuffs, dispersions, automobile and industrial coatings, crop protection agents, pharmaceuticals, fine chemicals, crude oil and natural gas. BASF's approach to integration, known in German as "Verbund," is one of the company's particular strengths and provides a unique competitive advantage. With sales in 1998 of € 27.6 billion (about $29 billion) and a workforce of 105,000 employees, BASF is one of the world's top chemical companies. BASF's Internet address is www.basf.com.

BASF Corporation Contacts:

David Klucsik (973) 426-2305
or
Amy Deeb (973) 426-2844