BASF NOF Coatings Co., LTD., -- Joint venture of BASF Coatings and NOF Corporation -- started on October 1, 2000

TOKYO, October 9, 2000 -- On October 1, the new 50/50 joint venture company of NOF Corporation (Shibuya-ku, Tokyo, Japan) and BASF Coatings AG (Muenster, Germany) became operative under the name BASF NOF Coatings Co., Ltd. With 500 employees, the company is located in Shinagawa-ku, Tokyo, and comprises all the coatings activities NOF and BASF have in Japan, covering automotive OEM coatings and refinish, as well as industrial coatings. The former two joint ventures of NOF and BASF Coatings, namely Nippon R-M Co., Ltd., which specialized in automotive repair paints, and BASF Nichiyu Coatings R & D Co., Ltd., which specialized in research and development of automotive OEM coatings, are to be integrated into the new company and will continue their reliable customer service. Managed by Osamu Ohe and Manfred Schmale, the new joint venture will be concerned with manufacturing, sales and marketing, and research and development.

In the automotive OEM coatings business, the new joint venture company unites BASF's experience as a successful systems supplier in all regions outside of Japan with NOF's expertise in technology and marketing in Japan. The two partners will offer high-grade, eco-efficient products and services to the automotive industry in Japan. Through value-added systems for the plants in Japan and those in other parts of the world, the partners will meet the requirements of Japanese automotive manufacturers, who increasingly operate globally.

In the automotive refinish sector, the partners intend to pursue their successful cooperation, benefiting from the synergies that arise from closer links to the automotive OEM coatings business. In industrial coatings as well, the new company will offer greater benefits to Japanese customers by combining the leading-edge technology developed by BASF in Europe with the technology NOF has developed for the Japanese market.

"This joint venture will make BASF the first western paint manufacturer to operate production facilities in Japan, and this also makes us the first real global player in the coatings industry," says Klaus Peter Loebbe, Head of the BASF Group's Coatings Division and President and CEO of BASF Coatings AG. "NOF and BASF will boost their international competitive position through this joint venture," points out Masayasu Uno, NOF's President and CEO.

BASF and Coatings 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 products, 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 1999 of 29.5 billion euros (US$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

The global Coatings Division of the BASF Group achieved, with about 10,000 employees, world sales close to 2 billion euros (about US$2 billion) in 1999, with more than 50 percent coming from outside Europe. The North and South America are the other major markets. However, BASF Coatings is also active in the Asia/Pacific region, for example with affiliates in Australia, China, India, Japan, and the Philippines.

In the coatings segment, BASF 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. In this business, eco-efficient powder coatings, water-based, high-solids and radiation-curable coatings play a special part. In Brazil, the company has been successful in the decorative paints market for years and is now holding the leading position. The internet address of BASF Coatings is www.basf-coatings.de

NOF Corporation

NOF Corporation is one of the leading chemical companies in Japan with diversified lines, such as processed oil and fats, paints and explosive propellants, actively engaged in OEM coatings and ship paints, foodstuffs incl. margarine and shortening etc. With sales in 1998 of 813 million euros (US$800 million; Yen 118 billion) and a workforce of 2,153, NOF established a new division for the development and marketing of high value-added products, advancing in functional films, phosphoric-related chemicals, optical and biocompatible resins, diagnostic reagents as well as antireflection film. This new area will further strengthen the company's earning power.

Note to editors:
The address of the new joint venture company is:
BASF NOF Coatings Co., Ltd.
1-6-3, Osaki, Shinagawa-ku, Tokyo 141-0032
Japan
Tel.: (+81)-3-5436-1261
Fax: (+81)-3-5436-1262

Your North American-based contact for inquiries is:
David A. Elliott
BASF Corporation
Tel.: (+1)-248-948-2067
Fax: (+1)-248-948-2101