BASF Corporation Announces "Fit For the Future" Reorganization for Operations in NAFTA Regions.

Business Editors

MOUNT OLIVE, N.J.--(BUSINESS WIRE)--Dec. 5, 2001

BASF Corporation today outlined the details regarding organizational changes announced earlier this year as part of BASF's global "Fit for the Future" strategy which aims to achieve greater market focus and facilitate growth by improving the speed, quality, and execution of business processes.

These structural changes, effective in the North American region as of January 2002, are expected to help BASF Corporation take advantage of opportunities created by the rapidly changing global economic environment.

Highlights of the new organizational structure are:

-- BASF Corporation's three existing regions will be consolidated into two:
NAFTA Region I, consisting of the chemicals group and BASF Canada, will be
headed up by Carl A. Jennings, Executive Vice President of BASF Corporation and
President of NAFTA Region I; and NAFTA Region II, responsible for coatings,
polymers, fiber products, fine chemicals, and BASF Mexico, headed up by Frank
E. McKulka, Executive Vice President of BASF Corporation and President of NAFTA
Region II. Each region is made up of individual regional business units that
have been empowered to run individual businesses. This will free the regional
leadership to maximize the efficiency and effectiveness of the group of
businesses operating under their guidance in the region.

-- The implementation of the "Fit for the Future" reorganization in BASF's
NAFTA regions is planned to coincide with Executive Vice President of BASF
Corporation and President of NAFTA Region III William Lizzi's decision to
retire in June 2002, after 25 years of service to the organization. Starting in
January 2002, Lizzi will work directly with Peter Oakley, Chairman and CEO of
BASF Corporation, and member of the board of executive directors, BASF
Aktiengesellschaft, to assist with cross-divisional projects.

-- Harold L. McDonald has been appointed Executive Vice President,
Manufacturing & Services, BASF Corporation. In this expanded role, BASF's large
manufacturing sites in North America as well as Engineering, Human Resources,
Ecology, Health & Safety, and Corporate Services will report to McDonald.

-- Hans-Ulrich Engel, Executive Vice President and Chief Financial Officer of
BASF Corporation, adds Corporate Purchasing to his responsibilities which
include Controlling, Tax & Treasury, Information Systems, Corporate Logistics,
and Internal Audit.

-- Thomas Y. Allman, Senior Vice President & General Counsel, and Timothy P.
Andree, Vice President, Corporate Communications, round out the list of
aforementioned functions reporting to Oakley.

Speaking on the reorganization, Oakley remarked, "The role of the regional leadership has evolved from managing the day-to-day operations of the various businesses that are in the region to managing the bigger picture of how these various businesses can work together to optimize the total business result. This role has less 'depth' but is much broader in scope. Therefore, it makes sense to consolidate more businesses under two regions." Oakley added, "Our leadership system is based on a matrix organization that depends on the people in it. In our organization, it is necessary to balance autonomy and accountability with cooperation and common good. The new leadership structure is designed to empower decision makers who are closer to the customer. By doing so, we will make BASF more 'transnational' as our operations continue to globalize."

BASF is the world's largest producer of chemicals and related products, with sales of approximately $34 billion and over 90,000 employees. Based in Mount Olive, New Jersey, 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. Further information on BASF Corporation in the United States and links to other North American activities can be found on the Internet at www.basf.com/usa.