July 19, 2005
Enormous interest from investors

Bayer successfully completes refinancing

EUR 1.3 billion hybrid bond issued / Bayer repurchases bonds with a face value of around EUR 860 million


Due to legal restrictions the bond tender offer is expressly not addressed to investors in the United States or Italy; further restrictions are detailed in the Tender Offer Memorandum. The invitation to purchase the new bond issue to be launched is not addressed to investors in the United States; further restrictions are detailed in the Offering Memorandum.


Leverkusen
- Bayer AG has successfully placed its previously announced subordinated hybrid bond on the capital markets. The high demand from investors exceeded the company's optimistic expectations. The order book had an exceptionally high quality and totaled over EUR 5 billion. The issue volume was therefore increased to EUR 1.3 billion and the order book was closed early. Interest on the new hybrid bond was fixed at 180 basis points above the ten-year swap rate and the coupon at 5 percent. It is the largest corporate bond issue of this type ever placed in Europe.

The bond will mainly be used to finance the repurchase of part of the 5.375 percent Bayer bond due on April 10, 2007. The repurchase volume reached a face value of around EUR 860 million and thus achieved the desired size. The repurchase was therefore closed after the early tender period. Both transactions were arranged by a bank consortium led by Deutsche Bank and J.P. Morgan.

The new bond issue enables Bayer to benefit from the present favorable interest rates and the high acceptance of Bayer securities on the capital market. The bond also strengthens Bayer's rating: Rating agencies classify 100-year subordinated hybrid bonds mainly as equity. Standard & Poor's long-term rating for Bayer is "A", while Moody's gives it an "A3" rating (both with a stable outlook). The bond itself is rated "BBB" (S& P) and "Baa2" (Moody's).


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.









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