Indianapolis, Indiana and Mount Olive, New Jersey
December 29, 2001

Canola growers in Canada and the United States will benefit from a new technology offer as a result of a global agreement announced today by Dow AgroSciences and BASF. This new technology will allow growers to produce canola with value-added output traits and non-GMO herbicide tolerance.

Under the terms of this agreement, Dow AgroSciences will develop new Nexera canola varieties for the CLEARFIELD* Production System. Bred to be tolerant to the imidazolinone family of herbicides, Dow AgroSciences CLEARFIELD canola will combine NatreonÒ quality oil varieties with the only weed control technology offering one-pass, extended control of multiple-flushing weeds in-crop.

According to Dwight More, BASF, Global Marketing Manager for CLEARFIELD Oilseeds, "This exciting agreement utilizes BASF's expertise in herbicide-tolerant crops and weed control, and Dow AgroSciences' expertise in breeding and marketing canola varieties with high valued components. As a result, growers will have access to new canola varieties that can provide improved marketing opportunities, along with the extended weed control benefits of the herbicides which are part of the CLEARFIELD Production System." This agreement also supports BASF's strategy of "adding value through growth and innovation".

The CLEARFIELD Production System for canola represents the latest advances beyond SMART®
canola, including new seed varieties, new custom-designed herbicides with extended weed control and new farm management opportunities. BASF has tested herbicides from the imidazolinone herbicide family and selected the best herbicides from that family for CLEARFIELD canola in various canola production areas.

In the United States, Beyond™ herbicide, a new imazamox-based herbicide, is the optimum herbicide selected by BASF from its imidazolinone herbicide family for use with CLEARFIELD canola. Beyond, which is not yet registered by the EPA, will offer canola growers control of troublesome weeds including wild mustard, pigeongrass and wild oats. In Canada, the products designated for use with CLEARFIELD canola include OdysseyÒ and PursuitÒ Ultra as well as the newly launched Absolute*, all of which provide broad-spectrum weed control from planting to flowering. These weed control options provide Canadian growers control of multiple-flushing weeds such as wild mustard, cleavers, chickweed and stinkweed. In addition, Absolute provides excellent control of Canada Thistle.

Dow AgroSciences has the global rights to sublicense the CLEARFIELD canola varieties developed through this research.

"The CLEARFIELD canola varieties resulting from this collaboration between BASF and Dow
AgroSciences will be important additions to the Nexera varieties being offered to our customers," says Joe Sobek, Business Leader for Dow AgroSciences. "The first commercial varieties resulting from this agreement will be available in 2004."

Nexera canola represents new technology that makes canola better. Nexera varieties produce Natreon quality oil that is a healthier and naturally stable alternative to partially hydrogenated vegetable oils. The increased oxidative stability and functionality of Natreon can allow the food industry to reduce or eliminate the use of partially hydrogenated oils, thereby reducing the amount of trans-fat in food products. The reduction of trans-fat in diets is recommended by nutritionists to help reduce coronary heart disease.

CLEARFIELD canola is one of the key crops in the CLEARFIELD Production System that combines agronomically advanced seed varieties with custom-designed imidazolinone herbicides with extended weed control and superior farm management benefits.

All current CLEARFIELD canola varieties as well as those that will be developed under this agreement are recognized as non-GMO by international regulators.

Globally, BASF and its seed partners offer the broadest portfolio of non-GMO herbicide-tolerant genetics available.

Dow AgroSciences LLC, based in Indianapolis, Indiana, USA is a global leader in providing pest
management and biotechnology products that improve the quality and quantity of the earth's food supply and contribute to the safety, health, and quality of life of the world's growing population. Dow AgroSciences has approximately 6,000 people in over 50 countries dedicated to its business, and has worldwide sales of approximately US $3 billion. Dow AgroSciences LLC is a wholly-owned subsidiary of The Dow Chemical Company.

The BASF Agricultural Products business in North America, Crop Protection Product Department,
markets a range of innovative crop protection materials and systems that enable growers to increase their cost-efficiency as well as their crop yield potential. Its headquarters are in Research Triangle Park, NC. It is a unit of the BASF Global Agricultural Products Division, located in Mount Olive, NJ.

BASF is a transnational chemical company that aims to increase and sustain its corporate value through growth and innovation. The company's product range includes high-value chemicals, plastics, colorants and pigments, dispersions, automotive and industrial coatings, agricultural products and fine chemicals as well as crude oil and natural gas. BASF's approach to integration, known in German as "Verbund," is one of its particular strengths, ensuring cost leadership and a unique competitive advantage. With sales of about €36 billion (circa $34 billion) in 2000 and over 90,000 employees, BASF is one of the world's leading chemical companies. BASF acts in accordance with the principles of Sustainable Development. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), Zurich (BAS), Paris (BA) and New York (BF). The company's Internet address is www.basf.com. Additional information regarding the CLEARFIELD Production System can be found at www.clearfieldsystem.com.

Beyond herbicide is not yet registered by the EPA. Any sale of Beyond after registration shall be solely on the basis of the EPA approved label, and any claims regarding product safety and efficacy shall be addressed solely by the label.

Absolute, CLEARFIELD, THE UNIQUE CLEARFIELD SYMBOL, Beyond, Odyssey, Pursuit Ultra, and SMART are trademarks of BASF.

NEXERA and Natreon are trademarks of Dow AgroScience.

Company news release
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