BASF SELLS SITE IN MEXICO

MEXICO CITY, December 6, 2000 - BASF sold its Xalostoc, Mexico, site to A. Rosenstein. Terms of the transaction were not released. Most of the 30 people who worked at the site for BASF have either continued in their positions with A. Rosenstein or transferred to BASF's automotive coatings plant in Tultitlán, Mexico.

The Xalostoc site contains production facilities, laboratories, offices and a warehouse. BASF most recently produced coil coatings, automotive component coatings and intermediates at Xalostoc. Other products previously manufactured by BASF at Xalostoc include resins and coatings for containers and automotive paints (OEM and refinish), industrial coatings and printing inks. BASF obtained the site in 1985 through its acquisition of Inmont.

"This was an ideal transaction for BASF, as it enables us to further streamline our North American coatings manufacturing base and gain efficiencies in supporting our product portfolio in the key, strategic markets we serve," said Gerold Mahr, Director General, BASF Pinturas S.A. de C.V. "It is equally satisfying that this transaction caused minimal, if any, disruption to our associates who worked at Xalostoc." Mahr added that production of coil coatings at Xalostoc will transfer to BASF's industrial coatings plant in Colton, Calif., with no disruption of service to customers.

The worldwide coatings segment of BASF has about 10,000 employees and achieved sales of about $2 billion in 2000. With global headquarters in Muenster, Germany, the BASF Coatings Division develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings, as well as the processes needed to apply them. Major markets for this BASF segment are Europe, North and South