Lanxess Arrives on Chemicals-Rubber-Plastics Scene

Pittsburgh, PA, August 20--A new name with a long tradition of innovation and technical expertise has emerged in the U.S. market for chemicals, synthetic rubber, and plastics, with the launch of Lanxess Corporation, the company announced today. Formed through a restructuring of the Bayer Group, the new company Lanxess is scheduled to leave the group at the beginning of 2005. "Lanxess is open for business," said Randall S. Dearth, president and chief executive officer. "Our name is new, and so is our mission: to be the preferred, low-cost and quality global source of commodity rubber, plastics, and chemical products and related technical and custom manufacturing services." Dearth said the formation of Lanxess and its separation from Bayer will enable the new company to concentrate its resources on core businesses and speed decision-making. Lanxess will also have greater freedom to develop niche markets and explore new business models, he said. With annual sales of nearly $7.4 billion, or 6 billion euros, Lanxess expects to be a major player in the global chemical industry through a broad portfolio of products from four general categories. Lanxess Corporation was formed when the Bayer Group combined most of its chemical businesses and large segments of its polymer activities. The company began operating as a legal entity in the United States on July 1, 2004. Lanxess Corporation will be a member of the newly formed Lanxess Group, whose ultimate holding company is scheduled to be listed on a stock exchange in Germany at the beginning of 2005. Bayer intends to divest itself of Lanxess through a spin-off, which would lead to a distribution of Lanxess shares to Bayer AG shareholders. Lanxess is an international chemical company that manufactures high- quality products in the areas of chemicals, synthetic rubber, and plastics.

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