BASF to Restructure Geismar, Freeport Manufacturing Sites New initiatives support ongoing $250 million restructuring program in North America MOUNT OLIVE, N.J., May 6 /PRNewswire-FirstCall/ -- BASF is launching initiatives to improve the efficiency and competitiveness of its major North American manufacturing sites in Geismar, La., and Freeport, Texas. The initiatives target savings in the range of $30 million to $40 million annually. The initiatives are a part of the company's ongoing restructuring program, which was first announced in August 2003 and which targets savings of at least $250 million annually by 2006. "To be a world-class competitor, we must continually strive to be a low-cost manufacturer," said Klaus Peter Loebbe, Chairman and CEO of BASF Corporation. "Our business and industry are challenged by overcapacity, high energy costs, high raw material costs, and the movement of customers to other countries. We are acting to address these issues and to improve our competitiveness. We are making good progress on our overall restructuring program and I am confident that we will exceed our minimum target of $250 million in annual savings." The initiatives to improve the efficiency and competitiveness of the Geismar and Freeport sites follow a comprehensive review of the operations of both sites. As a result, each of the sites has been charged with identifying specific process, productivity and technology enhancements in order to achieve new operating efficiencies. In connection with the achievement of new efficiencies, the company anticipates a combined reduction of 550 to 680 positions at the two sites. These reductions will begin within the next several weeks and will be substantially completed in 2005. The Geismar site, which currently has approximately 1,400 employees and contractors, will target reductions in the range of 400 to 500 positions. The Freeport site, which currently has approximately 1,000 employees and contractors, will target reductions in the range of 150 to 180 positions. "Our challenge is to redefine how we approach manufacturing operations, not just to reduce staffing. As we do so, we are committed to maintaining our high standards in the areas of safety, environment and health. This commitment is non-negotiable," Loebbe said. BASF - The Chemical Company. We don't make a lot of the products you buy. We make a lot of the products you buy better(R). BASF Corporation, headquartered in New Jersey, is the North American affiliate of BASF AG, Ludwigshafen, Germany. We employ about 11,000 people in North America and had sales of approximately $9 billion in 2003. For more information about BASF's North American operations, or to sign up to receive news releases by e-mail, visit http://www.basf.com/usa. BASF is the world's leading chemical company. Our goal is to grow profitably and further increase the value of our company. We help our customers to be more successful through intelligent system solutions and high-quality products. BASF's portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. Through new technologies we can tap into additional market opportunities. We conduct our business in accordance with the principles of sustainable development. In 2003, BASF had sales of approximately $42 billion and over 87,000 employees worldwide. Further information on BASF is available on the Internet at http://www.basf.com/. DATASOURCE: BASF CONTACT: Don McGrath, BASF, +1-973-426-2850, Web site: http://www.basf.com/usa

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