BASF – The Chemical Company – (NYSE:BF)(FWB:BAS)(LSE:BFA) also increased its sales and earnings in the third quarter of 2007 and is thus heading for a record year again. BASF’s Chief Financial Officer Dr. Kurt Bock pointed out to analysts and journalists that all segments contributed to the increase in sales. In particular, the businesses acquired last year performed strongly.

The demand for BASF products and innovative system solutions remains at a high level. BASF was able once again to increase volumes in comparison to the very strong quarter in the previous year, and slightly raise sales prices.

Overall, BASF increased sales by 5 percent to nearly €14 billion in the third quarter of 2007. Income from operations (EBIT) before special items rose by 6 percent to €1.7 billion.

Cumulative sales in the first nine months of 2007 rose by 13 percent to €43.3 billion. EBIT before special items increased by 9 percent to €5.9 billion.

Earnings per share more than doubled in the third quarter due to higher income from operations as well as a lower tax rate as part of the German Corporate Tax Reform 2008. This has resulted in non-recurring, non-cash income being included in the third quarter due to the revaluation of deferred taxes.

Positive outlook for full-year 2007

BASF is now expecting for 2007 the following conditions:

• Global economic growth of 3.5 percent
• An average oil price (Brent) of around $70/barrel
• An average dollar/euro exchange rate of $1.35 per euro

Risks are still seen as lying in geopolitical tensions as well as regional conflicts.

BASF is continuing with its restructuring measures and cost reduction programs in order to expand its position in the competitive environment.

For the year 2007, BASF expects sales of close to €58 billion. Also in the fourth quarter, scheduled plant turnarounds, in particular in Petrochemicals, are set to reduce earnings. Nevertheless, BASF expects EBIT before special items in 2007 to exceed the previous year’s record level.

All segments increase sales in the third quarter

In the Chemicals segment, sales (up 5 percent) and EBIT before special items both increased. All divisions with the exception of Petrochemicals contributed to this increase. The Petrochemicals division was impacted by scheduled plant turnarounds.

Sales in the Plastics segment rose 3 percent due to higher volumes and prices. Earnings did not match the excellent result of the previous year’s quarter. This is primarily due to a decline in earnings in the Performance Polymers division.

The Performance Products segment increased sales slightly by 1 percent due to higher volumes. A significant earnings increase in the Construction Chemicals division was not able to compensate for declines in other divisions.

The Agricultural Products & Nutrition segment posted the strongest sales growth of all segments in percentage terms, up 7 percent. Both divisions within the segment improved earnings. In Agricultural Products, higher sales prices were realized, in particular for fungicides for soybean cultivation in South America; also volumes were significantly increased. Restructuring measures in Fine Chemicals have been clearly successful. In addition, higher sales prices for several vitamins contributed to the significant earnings increase.

Higher volumes in natural gas trading led to a 3 percent sales increase in the Oil & Gas segment. Earnings were below the result of the previous year’s quarter due to lower oil production and declining margins in natural gas trading.

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF’s high-value products and intelligent system solutions help its customers to be more successful. BASF develops new technologies and uses them to meet the challenges of the future and open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. BASF has approximately 95,000 employees and posted sales of €52.6 billion in 2006. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

On October 30, 2007, you can obtain further information from the Internet at the following addresses:

Forward-looking statements

This release contains forward-looking statements. These statements are based on current expectations, estimates and projections of BASF management and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance or achievements of BASF to be materially different from those that may be expressed or implied by such statements. Such factors include those discussed in BASF’s Form 20-F for 2006 filed with the Securities and Exchange Commission, available as of March 14, 2007, in Internet under corporate.basf.com. We do not assume any obligation to update the forward-looking statements contained in this release.

Contacts:

BASF
Michael Grabicki, +49 621 60-99938
Fax: +49 621 60-92693
michael.grabicki@basf.com