July 03, 2006
To finance Bayer's investment program in Caojing, China:

Bayer successfully syndicates a EUR 610 million equivalent credit facility in China

Long-term credit facility available in Renminbi or U.S. dollars/ Syndication significantly oversubscribed
Leverkusen - Bayer has successfully secured a RMB 6.1 billion credit line
(equivalent to USD 760 million / EUR 610 million) in China. The syndication,
lead-managed by China Construction Bank, HSBC, Industrial and Commercial Bank
of China, and Standard Chartered Bank, was significantly oversubscribed. The
credit facility serves to finance a world-scale polyurethanes production plant
of Bayer MaterialScience at the Caojing site. The production unit for MDI, a
raw material for polyurethane foam, is part of an investment project at this
site with a total planned volume of some USD 1.8 billion through 2009.

The credit facility has a term of 10 years and may be drawn either in U.S.
dollars or in the Chinese currency Renminbi. The interest rate is 30 basis
points above Libor for U.S. dollar drawings, or 90 percent of the applicable
base interest rate of the Chinese central bank for drawings in Renminbi. The
commitment fee is 8 basis points per annum.

Forward-looking statements

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.