October 08, 2004
Package of measures to yield annual savings of EUR 200 million from 2007:

Bayer CropScience confirms profitability targets

Satisfactory operating performance in current year


Monheim
- Bayer CropScience aims to grow its EBITDA margin from 19 percent in 2003 to 25 percent by 2006. The company aims to further increase this margin to 26 percent. The Bayer subgroup, headquartered in Monheim, Germany, plans to achieve its profitability objectives with a package of efficiency-enhancing measures, reaching its full annual savings potential of around EUR 200 million by 2007. The initiative complements the restructuring project carried out during the integration of Aventis CropScience since 2002.

"This initiative confirms our clear, long-term profitability targets," says Professor Dr. Friedrich Berschauer, CEO of Bayer CropScience. "We are on course to achieve the projected synergies from the integration and now intend to create the basis for further growth in the future. Our new process optimization initiative should make a significant contribution in this respect from 2007."

Having streamlined its global management structures effective July 1, 2004, Bayer CropScience now intends to further enhance efficiency in all areas of the company by continuing to improve its internal business processes. This includes a review of procurement, supply chain management and production processes and adjustments in the field of Research & Development (R& D). Even after this adjustment Bayer CropScience will be able to draw on the largest budget for crop protection research and development in the industry.

These efficiency-boosting measures are expected to become fully effective by 2007. By then, headcount at Bayer CropScience's Monheim and Frankfurt sites in Germany is to be reduced by around 200. This reduction will be performed in a socially responsible way using the tools agreed with the Works Council, especially senior part-time working and early retirement programs.

Bayer CropScience CEO Prof. Dr. Friedrich Berschauer is very satisfied with the company's operating performance so far in fiscal 2004. "Following a strong first quarter, we continued to grow sales in the second quarter." Sales of Bayer CropScience in the first half increased year on year by 4.5 percent to EUR 3,374 million, with EBIT up by 11.2 percent from EUR 484 million to EUR 538 million. The realization of integration synergies played a significant role in this development. First-half EBITDA was EUR 897 million, 2.3 percent above the figure for the same period of 2003. "The first half of 2004 went well for us," Berschauer added. "With the new initiatives outlined today, we are creating a sound basis for achieving our long-term profitability target."

Bayer CropScience, a subsidiary of Bayer AG with annual sales of about EUR 5.8 billion (2003), is one of the world's leading innovative crop science companies in the areas of crop protection, non-agricultural pest control, seeds and plant biotechnology. The company offers an outstanding range of products and extensive service backup for modern, sustainable agriculture and for non-agricultural applications. Bayer CropScience has a global workforce of about 19,000 and is represented in more than 120 countries, ensuring proximity to dealers and consumers.


Forward-looking statements<br/>
This news release contains forward-looking statements based on current assumptions and forecasts made by the management of Bayer CropScience AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future consolidated results, financial situation, development or performance of Bayer CropScience AG or our parent company, Bayer AG, and the estimates given here. These factors include those discussed in Bayer AG's public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including Bayer AG's Form 20-F). Neither Bayer AG nor Bayer CropScience AG assumes any liability whatsoever to update these forward-looking statements or to conform them to future events or developments.









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