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BASF COMPLETES RESTRUCTURING OF MAGNETIC MEDIA BUSINESS

 BASF COMPLETES RESTRUCTURING OF MAGNETIC MEDIA BUSINESS
 BEDFORD, Mass., July 1 /PRNewswire/ -- BASF Corporation Information Systems today announced final plans for restructuring its North American magnetic media activities in line with the company's worldwide reorganization of this business.
 The plan, to be carried out between August and November 1992, calls for terminating computer tape production in Bedford, an intended buy-out of the 5.25-inch diskette production line by a group of BASF managers (which is in negotiation), and a reorganization of marketing, sales and administrative functions. This latest restructuring move follows a previous restructuring in March involving audio tape production.
 Production of 3.5-inch microfloppy diskettes in Bedford will continue in partnership with Fuji Photo Film Ltd., U.S.A.
 Further, "BASF will continue marketing its full range of computer media products including computer tape, data cartridges, and 5.25- and 3.5-inch diskettes as well as its line of audio and video cassettes and tapes for the music and movie industries," said Hans Schmidt, group vice president for BASF Corporation Information Systems.
 This final restructuring will result in a workforce reduction of about 240 employees with an additional 100 people likely to move over from BASF to the new management-owned company for 5.25-inch diskette production.
 BASF Corporation Information Systems will have a remaining workforce of about 415 people.
 Overall, the company sees the restructuring as a proactive response to the sharply decreasing computer tape market, the expected decline of 5.25-inch diskette demand and the necessity to adjust the whole organization to the ongoing price competition which is squeezing profit margins of companies involved in magnetic media manufacturing.
 "The new organizational structure will make us more competitive than ever because it allows us to focus our resources on product segments that have growth potential and on the market and customer sides of our business," Schmidt said.
 "We deeply regret this action was necessary. We are providing severance packages that will include continuation of health and life insurance and outplacement counseling. Additionally, we will assist employees in trying to find jobs within the BASF organization and in the local area," Schmidt added.
 -0- 7/1/92
 /CONTACT: Richard C. Howland Jr. of BASF, 617-271-4064/ CO: BASF Corporation Information Systems ST: Massachusetts IN: SU:


CN -- NE010 -- 5716 07/01/92 12:43 EDT
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Date:Jul 1, 1992
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