BASF to concentrate its Industrial Coatings Research in NAFTA

Columbus laboratories to close; All activities will be based at Southfield site

SOUTHFIELD, Mich., September 28, 2001 – BASF Corporation today announced that it will close the company’s Industrial Coatings Regional Business Unit’s research laboratory in Columbus, Ohio, as part of a restructuring program to centralize the business’s research and development efforts at BASF’s Southfield, Mich., facility.

This measure will result in a more efficient product development and support operation. This decision, combined with the planned $1 million investment in new laboratory facilities at Southfield, will strengthen BASF’s position as one of the world’s leading industrial coatings manufacturers.

Five employees will be affected by this action. BASF is committed to locating positions for these employees within the company, or will provide them with an appropriate severance compensation and out-placement services.

"We deeply regret having to take this action," said Jim Kendall, Vice President, Industrial Coatings, Regional Business Unit, NAFTA. "In order to compete effectively and ensure the long- term viability of this business, we need to centralize our research and development facilities, and the action announced today will significantly increase our research efficiency."

The affected facility is scheduled to close in the fourth quarter of 2001. Transition of work to Southfield will ensure that ongoing projects at Columbus can be completed on schedule and guarantee the continuity and transfer of knowledge and capability.

BASF is the world's largest producer of chemicals and related products. Based in Mount Olive, N.J., BASF Corporation is the North American affiliate of BASF AG (Ludwigshafen, Germany), which is listed on the New York Stock Exchange under the trading symbol "BF." BASF Corporation had sales of $7.9 billion in 2000. BASF in North America employs more than 15,000 people at more than 50 locations, and can be found on the Internet at www.basf.com/usa.