BASF Teams With Taiwan Textile Institute

Shanghai-based BASF (China) Ltd., a
part of Germany-based BASF AG, has signed a partnership agreement with the Taiwan-based Taiwan
Textile Research Institute (TTRI), which offers research and development and other services to the
Taiwanese and East Asian textile industry. As part of the agreement, BASF will customize its
water-based Lurapret® textile coatings for specific applications, in the hopes of providing new or
improved product properties to customers in that region.

In addition, the two partners will provide technical services and support to the region’s
textile industry.

The partnership with TTRI will give BASF a “competitive edge” in the market, according to
Fransis Chadikun, head of Performance Chemicals for Textiles, BASF Greater China. “In return,”
Chadikun added, “the advantages of customized Lurapret textile coatings in quality, efficiency and
eco-friendliness will enable our customers to achieve a better market position.”

Shin-Chuan Yao, president, TTRI, said the two organizations would develop symposiums related
to technical coatings, laminating and hot-melt applications. “Most importantly,” said Yao, “ … the
cooperation will serve as the front lines in the effort to help upgrade Taiwan’s industrial
technology, design and manufacturing ability in the coatings, lamination and hot-melt industries.”&

March 21, 2006