BASF, Honeywell Trade Businesses

Germany-based BASF AG and Honeywell International, Morris Township, N.J., have signed agreements
whereby BASF will acquire Honeywell’s global engineering plastics business, while Honeywell will
take over BASF’s global nylon fibers business.

The transactions are expected to close in the first half of this year, subject to regulatory
approval. At closing, BASF will pay Honeywell $170 million in cash in addition to transferring its
nylon fibers business to Honeywell in return for Honeywell’s engineering plastics business.
Honeywell also will pay $80 million to BASF within one year of closing. Honeywell’s engineering
plastics business currently employs approximately 500 people and includes manufacturing facilities,
research and development assets, and sales and technical service offices in North America, Europe
and Asia. Product lines include Capron® nylon 6 and nylon 6,6, Petra® post-consumer recycled
polyester and Nypel® post-industrial nylon. BASF will add these products to its engineering
plastics portfolio, which also includes Ultradur® thermoplastic polyester, Ultraform® acetal
copolymer, Ultrason® E polyethersulfone and Ultrason S polysulfone, and Ultramid® nylon-based
engineering plastics.

BASF’s nylon fibers business employs 1,600 people and includes manufacturing plants, research
facilities and sales offices in North America and BASF Hua Yuan Nylon (BHYN) Co. Ltd., Shanghai.
Product lines include commercial, automotive and residential nylon 6 carpet fiber; textile
products, including nylon yarns for apparel fabrics; nylon for automotive headliner fabrics; and
solution-dyed Zeftron® nylon for upholstery fabrics. These products will be integrated with
Honeywell’s product line, which includes Anso® nylon carpet fiber.

BASF will retain its fiber intermediates plants and will continue to produce nylon and its

“With this acquisition, we are bringing together the best teams in the industry,” said Raimar
Jahn, president, BASF Performance Polymers. “Combining the resources and capabilities of BASF’s and
Honeywell’s engineering plastics activities will spur new product and application developments, and
create efficiencies in bringing value-added solutions to customers.”

“The combination of Honeywell’s and BAS’Fs nylon fiber businesses will result in greater
economies of scale and increased cost synergies providing a stronger, more valuable business with
more strategic opportunities and flexibility in the future,” said Nance Dicciani, president and
CEO, Honeywell Specialty Materials.

February 2003