BASF Has a Strong Start in North America First quarter 2005 income before special items triples FLORHAM PARK, N.J., April 28 /PRNewswire-FirstCall/ -- BASF's North American business today posted strong financial results for the first quarter 2005, continuing the company's trend of improved financial performance in the region. BASF Aktiengesellschaft today announced its first quarter 2005 results in Ludwigshafen, Germany. Details can be found under http://www.basf.de/interimreport . First quarter sales in North America were EUR2.265 billion (approximately $2.94 billion), up 18 percent over the first quarter of 2004. Income from operations before special items in the first quarter of 2005 was EUR271 million (approximately $352 million) up 201 percent from EUR90 million in the first quarter of 2004. BASF's business in North America is benefiting from improved economic conditions that have resulted in higher prices and increased demand. In addition, the North American restructuring initiative has contributed to the improved performance. The program, which began in 2002, includes efforts to optimize support functions, improve manufacturing operations, and streamline business processes. As of the end of 2004, the restructuring had achieved annual cost savings of about $175 million. Employment at BASF in North America has been reduced by approximately 4,000 positions as a result of the restructuring and other actions. "Our restructuring initiative has proven very successful," said Klaus Peter Loebbe, Chairman and Chief Executive Officer of BASF Corporation, BASF's North American affiliate. "Our 2004 and first quarter 2005 financial results clearly reflect the impact of these efforts to date." "Our strategy in 2005 will be to continue a keen focus on improving productivity and efficiency, delivering greater customer value through innovation, and optimizing and strengthening our business portfolio," Loebbe said. Note: BASF Group reports financial results in Euros. References to U.S. dollars are made using an exchange rate of EUR1.00 = $1.30. This conversion is provided solely for the convenience of the reader. 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 10,000 people in North America and had sales of approximately $11 billion in 2004. 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: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF's intelligent solutions and high-value products help its customers to be more successful. BASF develops new technologies and uses them to open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. In 2004, BASF had approximately 82,000 employees and posted sales of more than $50 billion. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA) and Zurich (AN). Further information on BASF is available on the Internet at http://www.basf.com/ . DATASOURCE: BASF CONTACT: Jack Maurer of BASF, +1-973-245-6072, Web site: http://www.basf.com/usa http://www.basf.com/ http://www.basf.de/interimreport

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