Dystar BASF Textile Dyes Merger Complete

The enlarged Germany-based Dystar group, which includes BASFs former textile dyes business, has
begun operations with about 4,600 employees and sales of approximately DM 2.2 billion. The group
offers an extensive range of textile dyes and pigment preparations.Systematic utilization of scope
for synergies, accompanied by the reorganization of the group, will enable us to ensure a
competitive cost base and strengthen our market leadership, said Alfred X. Rad, CEO.BASF
transferred about 1,200 employees, four production sites in three countries and sales of
approximately DM 800 million to the new company. In 1999, the former Dystar group reported sales of
DM 1.435 billion with about 3,300 employees. The integration of BASFs textile dyes business has
expanded Dystars product portfolio to include indigo dyes, as well as rounding out its range of
vat, disperse and reactive dyes.Dystar has also reorganized to improve customer focus. Three
regional centers one in Frankfurt; one in Singapore; and one in Charlotte, N.C. will be responsible
for operational business. Central marketing functions are being restructured to center on fibers
and application processes in line with requirements of the market.Innovation will remain a focal
point of the new Dystar Groups activities. Rad announced that the group will continue to invest 3
to 4 percent of sales in research and development to help it introduce dyes having better
properties and optimize production processes.

December 2000