Bayer Polymers Rationalizes Polyether Polyol Production.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--Aug. 1, 2003

Bayer Polymers LLC announced today that as part of its ongoing rationalization of the company's production, it will shift more manufacturing of polyether polyols to its South Charleston, W.Va. and other North American sites. This will result in the closure of Bayer's polyether polyol production unit in Institute, W.Va. The company expects to stop polyether polyol production at the Institute site in the first quarter of 2004. Twenty-six jobs are impacted.

The decision is part of the Bayer Polymers' on-going strategy to improve utilization of its polymer materials production sites around the world. As part of that program, Bayer has previously discontinued polyol production at its Baytown, Texas and Rieme, Belgium plants. In 2001, the company idled a diphenylmethane diisocyanate (MDI) production unit in New Martinsville, W.Va., and in 2002, it consolidated its liquid polyester resins production. The company recently announced the dissolution and closure of the Bayer-Shell isocyanates joint venture for the production of toluene diisocyante (TDI) and MDI in Antwerp, Belgium and of its Mexican joint venture with Cydsa for the production of TDI, as well as its plans to discontinue production of TDI at its Leverkusen site early in 2004.

These utilization improvements complement the formation of Bayer Polymers LLC, which combines Bayer's coatings, plastics, polyurethanes and rubber businesses in a single operating company. The new Bayer Polymers' focus includes flexibility and cost-effective production.

"We are committed to maintaining our position as one of the world's leading suppliers of polymers through highly-efficient production and by providing customers with a broad range of top-quality products and value-added solutions," said Ian Paterson, Head of Bayer Polymers, Americas Region.

Bayer acquired the South Charleston and Institute production facilities in the purchase of the global polyols business of Lyondell Chemical Company in April 2000. The Institute polyol plant has been in service since 1970.

With 23,000 employees at 120 sites around the world and 2002 sales of 10.8 billion euros, Bayer Polymers is a leader in the global industry of performance polymers. The company's materials and solutions are the backbone of modern life, serving primarily the automotive, construction, information technology, appliance, furniture as well as sports and leisure industries. As a member of the global Bayer Group, Bayer Polymers benefits from a wealth of resources while enjoying the flexibility to focus on its primary objective: to be the partner of choice in polymer materials.

Bayer Corporation, headquartered in Pittsburgh, is the U.S. holding company of the worldwide Bayer Group, an international health care and chemicals group based in Leverkusen Germany. Bayer employs 24,600 in North America with net North American sales of 8.9 billion Euros in 2002. Bayer's five operating companies -- CropScience, Chemicals, HealthCare, Polymers and Pharmaceuticals -- produce a broad range of products that help diagnose and treat diseases, purify water, preserve local landmarks, protect crops, advance automobile safety and durability and improve people's lives.

The Bayer Group has nearly 118,600 employees. Its stock is a component of the DAX and is listed on the New York Stock Exchange (ticker symbol: BAY). For 2002, the Group recorded sales of 29.6 billion Euros and a group net profit of 1.1 billion Euros. Capital expenditures totaled 2.4 billion Euros, and 2.6 billion Euros was invested in research and development.

This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.