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BASF and Nidera enter new global agreement for CLEARFIELD sunflowers - Agreement allows rapid development and introduction by Nidera of CLEARFIELD hybrids

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Mount Olive, New Jersey and Buenos Aires, Argentina
June 11, 2003

BASF and Nidera announced today that they have signed a breeding, development, and commercial agreement to provide growers inArgentina, and ultimately to growers worldwide, with new hybrids of herbicide-tolerant CLEARFIELD sunflower for use with the CLEARFIELD Production System as early as the 2003 Argentine season. Bred to be tolerant to the imidazolinone family of herbicides, CLEARFIELD technology combines high yielding hybrids such as those from Nidera with CLEARFIELD herbicides, which are custom designed for the needs of the growers in the primary markets. In Argentina, the new CLEARFIELD herbicide CLEARSOL* is the only post-emergent product for sunflowers that provides broad-spectrum weed control due to contact as well as residual activity. In the United States, the product used in CLEARFIELD sunflowers is Beyond™ herbicide. Specific herbicides are also being developed for CLEARFIELD sunflowers in Europe.

According to Dwight More, BASF’s Global Marketing Manager for CLEARFIELD Oilseeds, “The agreement provides that Nidera will utilize traditional plant-breeding methods to produce thesunflower hybrids. BASF and Nidera anticipate that Nidera’s elite germplasm and breeding skills will result in the successful development and rapid introduction of Nidera sunflower hybrids containing the CLEARFIELD trait. Sunflower growers need a post-emergent herbicide that controls many weeds in one treatment. With CLEARFIELD herbicides such as CLEARSOL in Argentina and Beyond™, the product used in CLEARFIELD sunflowers in the United States, farmers have access to products designed for use with CLEARFIELD sunflowers.

The Director of Nidera’s Seed Division, Francisco Firpo, comments, “CLEARFIELD technology will revolutionize sunflower production and enable farmers to produce sunflowers more efficiently for higher profits. The agreement with BASF will permit both parties to capitalize on BASF’s expertise in herbicide tolerant crops and weed control and on Nidera’s expertise in breeding high performing hybrids, and their marketing and distribution expertise. It will result in the introduction of exciting new products and weed control options to growers in Argentina and other countries. Nidera is concentrating its plant breeding efforts on developing new CLEARFIELD sunflower hybrids with tolerance to CLEARSOL due to the importance of this technology to the sunflower industry. Nidera is pleased to be a leader in developing CLEARFIELD sunflower hybrids and to work with BASF on this technology.”

The CLEARFIELD Production System has been launched in corn, canola, wheat and rice.CLEARFIELD sunflower is another key crop in the CLEARFIELD* Production System, which matches carefully selected advanced hybrid seed with custom-designed imidazolinone herbicides. The imidazolinone family of herbicides has demonstrated over many years that it provides effective, extended weed control in high yielding crops and is the only product group to offer broad-spectrum control with both contact and soil activity. As a result of this agreement,the same type of protection will soon be available to Nidera customers.

Key components resulting from the agreement include: the launch of new Nidera CLEARFIELD hybrids which will be available in Argentina for use with CLEARSOL in the crop to be planted in 2003, and the breeding of additional Nidera CLEARFIELD hybrids for use by sunflower growersin Argentina and several other important sunflower producing countries. In addition, through the agreement there will be efforts to develop new technology in CLEARFIELD sunflowers.

All current CLEARFIELD varieties as well as those that BASF will develop using this technology are recognized as non-GMO by international regulators. Currently, BASF possesses the world’s largest portfolio of non-GMO herbicide tolerant traits and has established relationships with more than 100 seed companies worldwide. By combining the key benefits of maximum seed yield potential with superior season-long weed control, the CLEARFIELD* Production System has proven to be an important advantage to countless growers striving for optimum farm management.

Nidera S.A., the largest seed company in Argentina, is involved in Corn, Sorghum, Sunflower, Wheat and Soybean seed breeding, marketing, and distribution; and has an extensive research & development program for Argentina as well as for the Mercosur, EU and USA markets.

Nidera is well known as an innovator and developer of new proprietary germplasm and technologies for Argentine farmers that have contributed to the country’s agricultural growth since 1990. It has an extensive farming and processing operation throughout the country and its products and quality have ample recognition among farmers and technical support groups.

With sales of EUR 3 billion in 2002, BASF’s Agricultural Products division, headquartered in Mount Olive, New Jersey, USA, is a leading supplier and marketer of herbicides, fungicides and insecticides. Based on its broad experience in R&D, manufacturing, marketing and sales, the vision of BASF’s Agricultural Products division is to be the world’s leading innovator optimizing agricultural production, improving nutrition and enhancing the quality of life for a growing world population.

BASF is the world’s leading chemical company, offering its customers a range of high-performance products, including chemicals, plastics, performance products, agriculturalproducts, fine chemicals as well as crude oil and natural gas. Its distinctive approach tointegration, known in German as “Verbund,” is its strength. It enables BASF to achieve costleadership and gives the company a competitive advantage. BASF conducts its business inaccordance with the principles of sustainable development. In 2002, BASF had sales of EUR 32billion (circa USD 34 billion) and over 89,000 employees worldwide. Further information onBASF is available on the Internet at www.basf.com.

* CLEARFIELD is a registered trademark, Beyond and CLEARSOL are trademarks of BASF.

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