BASF and Dow AgroSciences have announced an agreement that will greatly expand availability of the CLEARFIELD* Production System herbicide-tolerance trait to the seed corn industry.

The agreement grants Dow AgroSciences rights to market and sub-license the trait in corn. The pact combines BASF's expertise in herbicide-tolerant crops with Dow AgroSciences' insect-protection traits and skills in developing high- yielding hybrids. Broader distribution of these enhanced corn lines will benefit farmers by increasing production options.

"We are excited to move forward in this relationship,'' says Doug Vawter, general manager for
Advanced AgriTraits LLC (AAT), Dow AgroSciences' crop genetics marketing subsidiary. "This is
a significant step in our plan to provide a broad array of new and exciting products to the global corn industry. Licensing and marketing herbicide-tolerance traits for some of the world's best herbicides will complement our advanced portfolio of insect protection traits, corn hybrid technology and value-added crop traits.''

"This agreement with Dow AgroSciences will greatly expand the availability of CLEARFIELD
technology in corn inbreds to other seed partners,'' says Scott Gaddis, BASF global director,
herbicide tolerant crops. "By making this technology available to a broad base of seed producers,
we can provide growers with access to advanced hybrids that are best for their region. This, along
with the broad-spectrum, season-long weed control of CLEARFIELD herbicides, will help farmers
optimize yields.''

Dow AgroSciences already markets the trait in corn hybrids it sells through its Mycogen Seeds
business unit. Now the company can produce and sub-license the technology to third-party seed
companies through AAT, its traits marketing subsidiary.

AAT, founded in 1998, offers a licensing network for companies to either offer or acquire new crop
technology. "The benefit for farmers is greatly increased access to high-quality seed products and
technology from local seed suppliers,'' says Vawter.

Herbicides such as LIGHTNING® in the United States and OnDuty* in Latin America are part of
the CLEARFIELD Production System. They belong to a unique family of crop protection products
developed by American Cyanamid, now a part of BASF. These herbicides act on an enzyme that is present in plants but not in mammals, birds, fish or insects. This selectivity, combined with low use rates per acre, makes the herbicides environmentally compatible while providing outstanding weed control.

Also, competitive treatments used for other herbicide-tolerant crops provide results only on emerged weeds. CLEARFIELD herbicides control grass and broadleaf weeds on contact plus continue to control weeds throughout the growing season. This advantage can help farmers reduce herbicide applications.

CLEARFIELD corn is also export-market friendly. Current corn lines, and those that will result from the agreement, are based on traditional breeding methods. The grain faces no international grain market restrictions.

The herbicide-tolerance trait may be bred into corn in combination with other traits of transgenic
origin, Vawter says. For example, he notes that Dow AgroSciences is currently developing a new
class of broad-spectrum insect protection that will complement the offering of CLEARFIELD traits
in seed corn.

"Farmers will benefit from a complete package of herbicide-tolerance and insect-protection traits in high-yielding corn hybrids,'' he adds. "These products will continue to improve farmer convenience, protect yield potential and safeguard the environment. The technology is necessary in our collective efforts to feed a growing global population using the current base of arable land.''

Vawter notes that the companies' agreement covers global licensing rights, and that Dow
AgroSciences' initial efforts marketing the BASF trait will focus on the United States and the
Western Hemisphere. CLEARFIELD, LIGHTNING, and OnDuty are trademarks of BASF

This press release contains certain forward-looking statements and information relating to BASF
Group and The Dow Chemical Company based on current expectations, estimates and projections of its management and information currently available to the company. These statements reflect the current views of BASF and Dow with respect to future events, are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. We do not assume any obligation to update the forward-looking statements contained in this news release.

BASF (NYSE: BF - news) 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 US $29.5 billion in 1999 and 105,000 employees, BASF is one of the world's leading chemical companies. BASF can also be found on the Internet at http://www.basf.com. 

Advanced AgriTraits LLC, Indianapolis, Indiana, is a global agricultural technology company
organized to develop and market an advanced portfolio of biotechnology traits and elite germplasm. Its mission is accomplished through collaboration with biotechnology suppliers, genetic originators, and retail seed companies. The company is owned by Dow AgroSciences LLC and Illinois Foundation Seeds, Inc., the second-largest foundation seed company in the U.S.

Dow AgroSciences LLC, based in Indianapolis, Indiana, 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. The
company employs more than 3,000 people in more than 50 countries and has worldwide sales of
more than $2 billion (US). Dow AgroSciences is a wholly owned subsidiary of The Dow Chemical
Company. For more information, visit our website at http://www.dowagro.com. 

The Dow Chemical Company is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $19 billion, Dow serves customers in 162 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 39,000 employees seek to balance economic, environmental and social responsibilities. For more information, visit http://www.dow.com.  

Company news release
N2975