BASF AG and Donlar Corporation today announced a licensing and supply agreement for Donlar's AmiSorb(R) nutrient management technology.

The agreement gives BASF development and commercialization rights to AmiSorb in Europe and
other areas outside of North America. BASF markets agricultural and specialty fertilizers under
the BASF and COMPO brand names.

"The licensing of the AmiSorb technology supports BASF's strategy to develop value-added
'intelligent fertilizer' products,'' says Dr. Klaus Erhardt, director of agricultural research and
development for BASF's Fertilizer Division in Limburgerhof, Germany. "We believe AmiSorb has
great potential to improve the efficacy and environmental sensitivity of fertilizer use.''

AmiSorb is based on a newer class of biodegradable polymers known as polyaspartates. This
technology, which earned Donlar a Presidential Green Chemistry Challenge Award in 1996,
improves nutrient absorption by plants.

"Donlar expects the licensing agreement with BASF to have a positive impact on Donlar's
commercial development of polyaspartate technology in the United States,'' says Joe Prochaska,
president of Donlar Life Sciences, a division of Donlar Corporation.

"As BASF enters its third year of research with AmiSorb and Donlar continues its North
American market development process, we will gain new insights into the field application of this
exciting technology,'' says Karl-Heinz Krieg, marketing manager of COMPO, the specialty
fertilizer business unit of BASF.

BASF is a leading producer of new technology fertilizers with global fertilizer sales of more than
$1.1 billion. With sales of more than $30 billion and 100,000 employees worldwide, BASF offers
a full range of chemical and chemical-related products.

Donlar Corporation is a Life Sciences and BioPolymers company in the early stages of market
development and commercialization. Its extensive patent protected and environmentally friendly
polyaspartate technology has worldwide application in crop nutrition management, crop
protection, seed technology, pharmaceuticals, water and process technology, detergents and
superabsorbents.

Further information on AmiSorb and AmiSorb-related technologies may be obtained from Donlar
Corporation, 6502 South Archer Road, Bedford Park, Ill., 60501, 708-563-9200 or BASF
Aktiengesellschaft, D-67114 Limburgerhof, Germany, telephone: 0621 602 8028.

SOURCE: Donlar Corporation

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