BASF to appeal against fine imposed by the European Commission relating to vitamins

BASF is to lodge an appeal against the fine imposed by the European Commission on November 21, 2001 with the responsible European Court of First Instance in Luxembourg. BASF has admitted responsibility for the anti-trust violations relating to the vitamins business and contributed to the clarification of the case by fully cooperating with the European Commission. The appeal therefore relates solely to the level of the fine, which the company considers in its case to be inappropriately high at EUR 296 million. The appeal is primarily based on the failure to take sufficient account of BASF's cooperation in resolving the case. To provide for the risk of an unsuccessful appeal BASF will book an additional provision of approximately EUR 200 million in the fourth quarter of 2001. In recent years, the company has significantly reinforced its measures to rule out violations of antitrust laws in the future. These measures include regular anti-cartel audits by the Corporate Audit division as well as a Group-wide Compliance Program based on BASF's Values and Principles which obliges all employees to act strictly in a law abiding fashion. More information on BASF's Values and Principles can be found on the Internet under www.basf.com under About Us: Values and Principles. BASF is a transnational chemical company that aims to increase and sustain its corporate value through growth and innovation. The company's product range includes high-value chemicals, plastics, colorants and pigments, dispersions, automotive and industrial coatings, agricultural products and fine chemicals as well as crude oil and natural gas. BASF's approach to integration, known in German as "Verbund," is one of its particular strengths, ensuring cost leadership and a unique competitive advantage. With sales of about EUR 36 billion (circa $34 billion) in 2000 and over 90,000 employees, BASF is one of the world's leading chemical companies. BASF acts in accordance with the principles of Sustainable Development. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), Zurich (BAS), Paris (BA) and New York (BF). The company's Internet address is www.basf.com.