December 11, 2003
Bayer HealthCare AG:

Pharmaceutical Division Concentrates Research in Biotech and Urology

- The Pharmaceuticals Division of Bayer HealthCare AG announced today that it will concentrate and realign its biotech research activities currently performed at the Berkeley, California site and close the research center in Kyoto, Japan. These decisions affect about 190 employees in Berkeley and a further 75 in Japan.

Urology research activities currently conducted in Japan will be moved to Wuppertal, Germany, in the first half of 2004. Biotechnology pipeline projects aligned with the division's core therapeutic areas will be transferred from Berkeley to sites in West Haven, Connecticut, United States, and Wuppertal, Germany respectively. The company will seek licensing partners for other development candidates outside of its core therapeutic areas.

Ongoing research, product development and manufacturing of Bayer Biological Products Division's leading biotechnology therapy Kogenate® (recombinant Factor VIII for the treatment of hemophilia) are not affected by these decisions and will remain at Berkeley. The nucleic acid diagnostics unit of Bayer HealthCare's Diagnostics Division is also not affected by the decision.

"To manage our Pharmaceutical business professionally, we will continually re-evaluate and refine our activities, processes and cost structures. This will enable Pharma - and thus Bayer HealthCare - to build a long-term growth and value-creation strategy for the business," said Dr. Wolfgang Plischke, Head of the Pharmaceuticals Division.

In November the company also reaffirmed that it will focus its research and development efforts on the core areas anti-infectives, cardiovascular risk management - including diabetes and obesity - and urology. Cancer research is regarded as a new field presenting tremendous challenges and opportunities.

Bayer HealthCare, a subgroup of Bayer AG with annual sales amounting to some EUR 9.4 billion, is one of the world's leading, innovative companies in the health care and medical products industry.

Bayer HealthCare combines the global activities of the Animal Health, Biological Products, Consumer Care, Diagnostics and Pharmaceuticals divisions. More than 34,000 employees work for Bayer HealthCare worldwide. Our work at Bayer HealthCare is to discover and manufacture innovative products for the purpose of improving human and animal health worldwide. Our products enhance well-being and quality of life by diagnosing, preventing and treating disease.

Forward-looking statements<br/>
This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F).The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.