Japan's First Eco Mark for Automotive Refinish Paint Goes to BASF Coatings

• European VOC emissions regulation standard adopted as the reference value for certification
• Boost for BASF’s further market penetration with eco-friendly solutions

Yokohama/Japan. Eco-friendly products from the "R-M®" automotive refinish coatings system by BASF Coatings were certified as "Eco Mark Paints" and recognized as suitable for environmental preservation by the Eco Mark Office of the Japan Environment Association. The R-M brand is the first automotive refinish paint in Japan to receive the Eco Mark certification.

The emission of volatile organic compounds (VOC) is used as the measure for Eco Mark certification of automotive refinish paints, and the European VOC emissions regulation standard was adopted as the reference value for certification (enacted by the Japan Environment Association in April 2007). Certification was granted to the R-M brand because its eco-friendly automotive refinish paints has already cleared the VOC emissions regulation standard in Europe.

“We are very proud of our eco-friendly products certified as Japan's first eco-mark refinish paints, “ stated Kazuyuki Nakatsubo, Business Manager, Automotive Refinish and Commercial Transport Coatings Solutions, BASF Coatings Japan Ltd. " Boosted by this Eco Mark certification, we intend to position eco-friendly products as the main line of our portfolio. The advantages for all parties are obvious. Consumers can now easily decide on environmentally-friendly products. We will further support the widespread use of eco-friendly coatings in Japanese refinish market."

The certified automotive refinish coating products by BASF Coatings Japan include ONYX HD the waterborne paint, HYDROFILLER, HYDROXYPRIMER, and the STOP MULTI putty. The features of each are as follows.

ONYX HD
A waterborne paint proven both in Europe and Japan. ONYX HD is a PRTR (Pollutant Release and Transfer Register) free product that falls under the category of Hazardous Material Type 4, 2 ^nd Petroleum Class in Japan’s Fire Defense Law. ONYX HD has a hazard rating that is lower than that of conventional paints and can therefore lead to a reduction of users’ hazardous materials holdings. ONYX HD also complies with Japan's amended Air Pollution Control Law and is a user friendly and environmentally friendly paint that can reduce the volume of paint waste by up to 90% by separating the waste after use and the water used for cleanup.

HYDROXYPRIMER
A chromate-free wash primer that has cleared the volatile organic compound (VOC) regulations established in Europe. Direct application of HYDROXYPRIMER on steel panel improves adhesiveness. HYDROXYPRIMER can also be used as a sealer, and basecoats can then be applied directly onto the product with no intermediate prep work, thus reducing overall paint time.

HYDROFILLER
An environmentally responsive surfacer that can be dry sanded and has cleared the volatile organic compound (VOC) regulations established in Europe.

STOP MULTI
A putty for thick coating that features superior adhesiveness to steel sheet metal, galvanized steel, and aluminum materials.

P-Coat-1406

Current Status of Automotive Refinish Coatings in Japan

Although Japan's automotive refinish coatings market is the 2^nd largest in the world following the market in the US, the dissemination rate of low VOC paint including waterborne paint is 4%. Compared to the 48% dissemination rate in automotive OEM coatings industry and to the dissemination rate in all other coatings industry segments, environmental measures are the most delayed in the automotive refinish coatings industry. New VOC regulations were enforced on April 1, 2006, however, most of the approximately 40,000 bodyshops located throughout Japan are not regulated by law but are the target of voluntary initiatives. Therefore it still falls short of the widespread changeover to waterborne paints.

About Japanese Eco Mark Program

Japan's Eco Mark program is one of the oldest eco-labeling programs after the Blue Angel and was introduced in 1989 as a certification program that aims to spread information on the environmental effects of products and to encourage consumers to choose environmentally friendly products. The Japan Environment Association, a not-for-profit organization operates the program. The Eco Mark program is managed in accordance with ISO 14020 and 14024 and currently has 47 product categories and has awarded 5,239 products (as of March 31, 2007).

About BASF Coatings Japan

Head Office:
296 Shimokurata, Totsuka-ku, Yokohama, Japan

Start of business:
April 1, 2005

President:
Mutsuo Aoki

Employees:
Approx. 550

Shareholders:
BASF Coatings AG, BASF Coatings S.A.S. (affiliate


Contact:
Natsuko Osada
Corporate Communications
BASF Coatings Japan Ltd.
TEL: +81 3 3238 2226
FAX: +81 3 3238 2514
natsuko.osada@basf


About BASF Coatings
BASF Coatings, the Coatings Division of the BASF Group, develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings as well as decorative paints. BASF has significant market positions in the Coatings sector in Europe, North America, South America and the Asia/Pacific region. In 2006 BASF Coatings achieved global sales of about 2.3 billion euros. The internet address of BASF Coatings is www.basf-coatings.com

BASF Automotive Solutions. Performance Passion Success

BASF – The Chemical Company – is a leading-edge source of intelligent sustainable solutions to automotive manufacturers and their suppliers worldwide. With a full portfolio of technologies that include coatings, catalysts, engineering thermoplastics, polyurethanes, pigments and colorants, coolants and brake fluids for a broad array of exterior, interior, chassis and under-the-hood applications, BASF – The Chemical Company - develops and delivers the innovations that help the automotive industry improve the quality, appearance, safety, cost competitiveness, performance, comfort, fuel efficiency, sustainability. Website: www.automotive.basf.com