BASF and RiceTec, Inc. have announced a global agreement for the development, production and commercialization of high performance hybrid rice for the CLEARFIELD* Production System.

This multi-faceted agreement will lead to the development of the first hybrid rice with tolerance to
the imidazolinone herbicides of the CLEARFIELD Production System. As a result of this
agreement, rice growers will be able to access new high performance hybrids and benefit from the
broad spectrum, season long, weed control offered by the imidazolinone herbicides. The first
commercial hybrids resulting from this agreement are projected to be available in the U.S. in
2003.

RiceTec will utilize new recently developed imidazolinone herbicide tolerance in developing the
hybrids. These herbicide tolerant traits, as well as the existing CLEARFIELD herbicide tolerant
trait, were developed using non-GMO technology that does not involve the insertion of genetic
material. This initiative utilizes RiceTec's expertise in development, marketing, and distribution of
hybrid rice seed, along with BASF's expertise in herbicide tolerant crops, to expand the rice
production options available to growers through the CLEARFIELD Production System.

"We're very excited to be working with RiceTec under this new agreement,'' says Bill Dunham,
Global Director of CLEARFIELD* rice for BASF. "The cooperative nature of this agreement
between BASF and RiceTec will continue BASF's commitment to providing the world's rice
growers the best tools for optimum yields, with advanced hybrid genetics from RiceTec and,
outstanding weed control in the CLEARFIELD* Production System,'' adds Dunham.

"Proprietary RiceTec seed products, such as our recently introduced hybrid XL6, offer
outstanding yield advantages over traditional rice varieties, and in combination with the
CLEARFIELD Production System will allow unprecedented flexibility for weed control,'' said Dr.
Alan Gould, Executive Vice President of Research and Technology for RiceTec.

Since the first imidazolinone tolerant crop was launched in 1992, thousands of growers have taken advantage of the benefits of CLEARFIELD Production System, advanced seed genetics and
custom designed herbicides, that helps farmers optimize yields. BASF (NYSE: BF - news), along
with their seed partners, maintain the broadest portfolio of non-transgenic, herbicide tolerant traits.

The imidazolinones are a unique family of crop protection products for weed control that work on
an enzyme that is present in plants but not in mammals, birds, fish or insects. This selectivity makes the imidazolinones non-toxic to humans and wildlife while providing outstanding weed control.

BASF is a return-focused global company which strives for value-added growth, especially in the
sectors of chemistry, health and nutrition as well as oil and gas. The company's product line
encompasses high-value-added chemicals, plastics, colorants, dispersions, automotive and
industrial coatings, crop protection agents, pharmaceuticals, fine chemicals, crude oil and natural
gas. With sales of U.S. $29.5 billion in 1999 and 105,000 employees, BASF is one of the
world's leading chemical companies. CLEARFIELD is a trademark of BASF

RiceTec, Inc. is a subsidiary of RiceTec AG, a global leader in the development of hybrid rice for
mechanized farming systems. RiceTec, Inc. develops, produces and markets a range of high-value rice products, including XL-6 hybrid rice seed and RiceSelect and Texmati brand consumer rice products, to farmers, rice processors and consumers in the United States and Canada.

Company news release
N2965