Aventis Announces Pro Forma 1999 Year-End Results.

Business Editors

STRASBOURG, France--(BUSINESS WIRE)--March 23, 2000

Life Science businesses post 24 percent growth in pro forma

net income before exceptionals Underlying strong

performance impacted by exceptionals

Aventis today reported unaudited 1999 consolidated pro forma group sales of 20.452 billion euros (1998: 20.943 billion) and pro forma net income before exceptionals of 692 million euros (1998: 729 million). "Due to the level of exceptionals and one-time items, the strong underlying performance of our combined businesses is better reflected in the pro forma figures, which present Aventis in its current structure retroactively for 1999 and 1998," said Patrick Langlois, Chief Financial Officer of Aventis. Compared with 1998, pro forma sales by the life science businesses - Aventis Pharma and Aventis Agriculture - increased in 1999 by 4 percent to 18.406 billion euros; net income by the life sciences businesses increased before exceptionals by 24 percent to 745 million euros. For the life science businesses pro forma earnings per share before exceptionals amounted in 1999 to 0.96 euro (1998: 0.77 euro); for the Aventis Group the corresponding earnings per share were 0.89 euro (1998: 0.93 euro);

The audited statutory results for 1999 show consolidated sales for Aventis of 12.598 billion euros (1998: 13.232 billion) and a loss after taxes of 970 million euros (1998: after tax profit of 644 million). The statutory consolidated results of Aventis encompass fiscal 1999 for Rhone-Poulenc S.A. and Hoechst AG for the 15 days between the creation of Aventis on December 15 through the end of 1999.

"We aim to achieve EBITDA growth of 15 percent on average over the next three years" Jurgen Dormann, Chairman of the Board of Management, summarized the goals for the year 2000: "Our top priority is to increase our profitability and realize the planned synergies. The share of sales accounted for by new and patented products is expected to increase substantially, above all in the U.S. As already announced, we are aiming to rapidly divest the remaining industrial businesses and non-core assets. We aim to achieve average EBITDA (earnings before interest, taxes, depreciation and amortization) growth of 15 percent for Aventis over the next three years, which is expected to have a strong impact on the growth of our future EPS. And finally, we want to focus on the integration of our businesses into strong, unified entities."

Synergies and integration on track The annual synergy potential of 1.2 billion euros is planned to be reached in stages by the end of 2002. These amount to 750 million euros in Aventis Pharma, 350 million euros in Aventis Agriculture and 100 million euros in corporate costs. In the year 2000, Aventis plans to realize synergies of around 400 million euros.

"The agreement with DuPont Pharmaceuticals on the acquisition of our research and development facility in Romainville, France, which was announced in the beginning of March, is an important contribution to achieve our integration goals and a good example of our ability to implement our strategy with innovative solutions in a socially responsible manner," said Jean-Rene Fourtou, Vice-Chairman of the Board of Management. Further decisions were taken in the course of the last months: The Aventis Pharma commercial operations in the U.S. will be consolidated in New Jersey; while other sites, mainly in Collegeville, Pennsylvania, and Kansas City, will be closed. Similar integration measures have been announced for other country organizations of Aventis Pharma and Aventis Agriculture.

Aventis Pharma: Potential blockbuster products fueling growth The businesses that comprise Aventis Pharma contributed pro forma sales of 13.901 billion euros (1998: 13.004 billion), or around 75 percent of sales of Aventis in 1999. The pro forma income from operations (IFO) before exceptionals and goodwill amortization increased by 19 percent to 2.450 billion euros (1998: 2.065 billion). At 2.434 billion euros, the vast majority of the pro forma research and development expenses, which total to 3.017 billion euros for the Aventis life science businesses, is attributable to Aventis Pharma.

Three potential blockbuster products were the main growth drivers in 1999:

- Q1 earnings: May 23, 2000

- Annual General Meeting: May 24, 2000 in Strasbourg

- Q2 earnings: during the week of August 28, 2000

- Q3 earnings: during the week of November 6, 2000

Lovenox(R)/Clexane(R) is the world's leading low molecular weight heparin with a wide range of indications in a rapidly expanding market. Allegra(R)/Telfast(R) recently received approval in the U.S. for a once-a-day dosage which should further improve its competitive position. Both drugs are expected to achieve sales of more than 1 billion euros in 2000.

Taxotere(R) is indicated for treatment of metastatic breast cancer after failure of prior chemotherapy and local advanced or metastatic non-small-cell-lung cancer after failure of prior chemotherapy. Several line extensions for Taxotere are in development. The rheumatoid arthritis drug Arava(R) and the diabetes drug Amaryl(R) also showed solid growth.

Aventis CropScience business maintains income level despite contracting market The businesses that make up Aventis Agriculture declined, mainly due to the negative impact of Aventis Animal Nutrition. Pro forma sales of Aventis Agriculture in 1999 fell by around 3 percent to 4.609 billion euros (1998: 4.768 billion) and income from operations (IFO) before exceptionals and goodwill amortization decreased by 13 percent to 661 million euros (1998: 759 million). However, for Aventis CropScience, the crop protection and crop production business, IFO before exceptionals and goodwill amortization remained flat despite an unfavorable market environment. The strategic agro products posted strong growth: sales of Regent(R), a fipronil-based insecticide, increased by 38 percent to 168 million euros, Balance(R) a corn herbicide, grew by 19 percent to 75 million euros and Liberty Link(R), a selective herbicide, increased by 11 percent to 49 million euros.

Proposed dividend of 0.45 euros to be distributed on June 4, 2000 "Although our financial statements include a high level of exceptional items, we will propose to our shareholders a dividend of 0.45 euros per share, " said Patrick Langlois, Chief Financial Officer of Aventis. Together with the French tax credit, the "avoir fiscal", amounting to 50 percent of the dividend, the gross dividend per share will be 0.675 euros. The total dividend payment, which is scheduled for June 4, 2000, will be around 351 million euros.

Aventis (NYSE: AVE) is a world leader in life sciences. Focused on two core business areas - pharmaceuticals and agriculture - Aventis is dedicated to improving life through the discovery and development of innovative products in the fields of prescription drugs, vaccines, therapeutic proteins, crop production and protection, animal health and nutrition. The global corporate headquarters are in Strasbourg, France.

Statements in this press release other than historical information are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the availability of resources, the timing and effects of regulatory actions, the strength of competition, the outcome of litigation and the effectiveness of patent protection. Additional information regarding risks and uncertainties is set forth in documents of Aventis on file with the Securities and Exchange Commission, as well as the Registration Statement on Form F-4 of Rhone-Poulenc, S.A. (the previous name of Aventis) and other documents of Rhone-Poulenc, S.A. and Hoechst AG on file with the Securities and Exchange Commission.

Indicative timetable on upcoming financial communication dates of Aventis in 2000:

- Q1 earnings: May 23, 2000

- Annual General Meeting: May 24, 2000 in Strasbourg

- Q2 earnings: during the week of August 28, 2000

- Q3 earnings: during the week of November 6, 2000