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1 About Bayer AG

In order to separate operational and strategic management Bayer AG was reorganized into a holding company in December 2003. The groups core businesses were transformed into limited companies, each controlled by Bayer AG. These companies are: Bayer CropScience AG; Bayer HealthCare AG; Bayer Material Science AG and Bayer Chemicals AG and the three service companies Bayer Technology Services GmbH, Bayer Business Services GmbH and Bayer Industry Services GmbH & Co. OHG.

Following Bayer's successful reorganization, its chemicals activities (with the exception of H.C. Starck and Wolff Walsrode) have been combined with certain components of the polymers segment to form the new company LANXESS. This change took place on July 1, 2004, with LANXESS to be listed on the stock exchange by the beginning of 2005.

Bayer AG shares are listed on XETRA in Germany, LSE in the United Kingdom and on NYSE in the United States.

2 History

Bayer became part of IG Farben, a conglomerate of German chemical industries that emerged during World War I. When the Allies split IG Farben after World War II for involvement in several war crimes, Bayer reappeared as an individual business.

They have discovered, among others:

• Aspirin — a mild pain reliever
• Heroin — a strong pain reliever
• Mustard gasMustard gas (HD) is a chemical compound that was first used as a chemical weapon in World War I. In pure form, it is a colourless, odourless, viscous liquid at room temperature and causes blistering of the skin. The name comes from impure mustard gas, whi — a blistering chemical weapon
• TabunTabun or GA (Ethyl N,N-dimethylphosphoramidocyanidate) is an extremely toxic substance that is one of the world's most dangerous weapons of war. Because it fatally interferes with normal functioning of the mammalian nervous system, it is classified as a n — a nerve gas
• CiprofloxacinCiprofloxacin is the generic international name for the synthetic antibiotic manufactured and sold by Bayer Pharmaceutical under the brand name Cipro (and other brand names in other markets, e. veterinary drugs), belonging to a group called fluoroquinolon — an antibioticAn antibiotic is a drug that kills or slows the growth of bacteria. Antibiotics are one class of "antimicrobials", a larger group which also includes anti-viral, anti-fungal, and anti-parasitic drugs. They are relatively harmless to the host, and therefor

3 Bayer Cropscience

In 2002 Bayer AG acquired AventisAventis was formed in 1999 when Rhone-Poulenc S. merged with Hoechst AG. The merged company was based in Strasbourg, France. Sanofi-Aventis was formed in 2004 when Sanofi-Synthelabo merged with Aventis. The The Aventis Prizes for Science Books, which cele CropScience and formed Bayer CropScience. The company is now one of the world's leading innovative cropA crop is a thin-walled expanded portion of the alimentary tract used for the storage of food prior to digestion that is found in many animals, including earthworms, leechs, insects, and birds. Cropping is used by bees to temporarly store nectar of flower science companies in the areas of crop protection, non- agricultural pest control, seeds and plant biotechnology. In addition to conventional agrochemical business it is involved in genetic engineering of food.