WYANDOTTE, MI, December 20, 2007 – BASF today announced that it will institute a surcharge for methanol effective January 1, 2008. The price increase includes, but is not limited to, the following products: Luwipal® 066 and 072.

The surcharge will be calculated monthly based on the published methanol contract price for North America as supplied by Methanex on its website,  
http://www.methanex.com/products/methanolprice.html.

Luwipal is a registered trademark of BASF Corporation.

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BASF Corporation, headquartered in New Jersey, is the North American affiliate of BASF AG, Ludwigshafen, Germany. BASF employs more than 15,500 in North America and had sales of approximately $14.3 billion in 2006. For more information about BASF’s North American operations, or to sign up to receive news releases by e-mail, visit www.basf.com/usa.

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF’s high-value products and intelligent system solutions help its customers to be more successful. BASF develops new technologies and uses them to meet the challenges of the future and open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. BASF has approximately 95,000 employees and posted sales of €52.6 billion (approximately $66.1 billion) in 2006. Further information on BASF is available on the Internet at www.basf.com.