Betaseron approved in the U.S. for earliest stages of Multiple Sclerosis

Berlin, October 23, 2006 - Schering AG, Germany (FSE: SCH, NYSE: SHR),
majority-owned by the Bayer Group, announced today that the U.S. Food and
Drug Administration (FDA) has expanded the indication of Betaseron(r)
(interferon beta-1b, brand name of Betaferon(r) in the U.S.) to include
patients who have experienced a first clinical episode and have MRI
features consistent with multiple sclerosis. Betaseron is indicated for the
treatment of relapsing forms of multiple sclerosis to reduce the frequency
of clinical exacerbations. Betaseron is the only high-dose, high-frequency
interferon beta indicated for patients at the earliest stage of MS.

The new indication is based on results from the BENEFIT
(BEtaferon/BEtaseron in Newly Emerging multiple sclerosis for Initial
Treatment) Study of patients with a first clinical event and MRI features
suggestive of MS. The two-year study showed that treatment with Betaseron
delayed the time to a second clinical event by one year compared to
placebo1. BENEFIT is the only trial to demonstrate the efficacy of a high
dose, high frequency interferon beta , Betaseron, as an effective treatment
for patients with early MS. In addition to establishing efficacy in this
group of patients the study also showed that patients with early MS found
Betaseron to be a safe and well-tolerated treatment, as evidenced by the
findings that 93% of patients completed the study.

"We are very proud to have achieved the approval for the use of Betaseron
in the treatment of patients with early MS in the United States following
approvals in Europe and Canada", said Dr. Darlene Jody, Head of Specialized
Therapeutics at Schering Group. "The results of the BENEFIT trial extend
the efficacy of Betaseron as an excellent treatment choice for patients
with relapsing and remitting MS to patients who are at the earliest stage
of the disease. In these patients with early MS Betaseron substantially
slowed down the course of their illness."

Additional Information

ABOUT THE BENEFIT STUDY

Two-year data from the BENEFIT Study were recently published in
Neurology(1). In the randomized, double-blind, placebo-controlled,
multicenter trial, 468 participants were given either Betaseron 250
micrograms (mcg) subcutaneously every other day or placebo until they
experienced a second clinical event which confirms the diagnosis, or
they had been followed for at least 24 months. Results showed that:

- - In the placebo group, over half of the patients reached MRI-defined MS
within six months and 85 percent reached MRI-defined MS in the two-year
study. This shows that this patient population is at high risk to
develop MS.

- - Treatment with Betaseron reduced the risk of progression to clinically
definite MS by about 50 percent and to MRI-defined MS by 46 percent
compared to placebo(2).

- - Treatment with Betaseron delayed the time to a second clinical event by
one year compared to placebo.

The results of the BENEFIT trial also showed that the patients were willing
to initiate and continue Betaseron treatment in an effort to gain control
of the disease at its earliest stages:

- - More than nine out of 10 patients (93 percent) treated with Betaseron
completed the study, a rate similar to the patients in the placebo arm.

- - Nearly all of the eligible patients (96 percent) opted to participate in
a three-year extension of the study. To date, no other trial involving
early MS patients has demonstrated such a high level of patient
acceptance.

- - Only 2.7 percent of patients in the trial discontinued therapy because
of adverse events. Dose titration (increasing the dose slowly) and use
of analgesics prior to injection may help patients manage the most
common side effects associated with starting therapy.

Literature
(1) Kappos L et al. Treatment with interferon beta-1b delays conversion
to clinically definite and McDonald MS in patients with clinically isolated
syndromes. Neurology 2006;67:1242-1249.

(2) Risk reduction based on adjustment for a standard set of baseline
covariates

ABOUT BETAFERON
Betaferon/Betaseron was the first disease-modifying drug introduced for MS
and is a well-established treatment around the world. Betaferon has the
broadest experience of any MS medication. In the U.S., Europe and Japan,
Betaferon has been approved for all relapsing forms of MS. It is able to
reduce the number of MS episodes by one-third, and the frequency of
moderate to severe episodes by as much as 50 percent. Sixteen years' follow
up of people treated with Betaferon has shown that it is safe and well
tolerated.


Schering AG is a research-based pharmaceutical company. Its activities are
focused on four business areas: Gynecology&Andrology, Oncology, Diagnostic
Imaging as well as Specialized Therapeutics for disabling diseases. As a
global player with innovative products, Schering AG aims for leading
positions in specialized markets worldwide. With in-house R&D and supported
by an excellent global network of external partners, Schering AG is
securing a promising product pipeline. Using new ideas, Schering AG aims to
make a recognized contribution to medical progress and strives to improve
the quality of life: making medicine work

It is planned that Schering AG will be renamed Bayer Schering Pharma
Aktiengesellschaft. A corresponding resolution was passed at the
Extraordinary General Meeting of Schering AG on September 13, 2006. Until
the name change has been registered in the commercial register, the company
will continue to operate under the name Schering AG. According to the
resolution of the General Meeting, the Executive Board will not file an
application for registration before December 1, 2006.


This press release has been published by Corporate Communication of
Schering AG, Berlin, Germany.

Your contacts at Corporate Communication:

Media Relations: Oliver Renner , T: +49-30-468 124 31,
oliver.renner@schering.de
Investor Relations: Dr. Jost Reinhard, T: +49-30-468 150 62,
jost.reinhard@schering.de
Pharma Communication: Dr. Claudia Schmitt, T: +49-30-468 158 05,
claudia.schmitt@schering.de


Find additional information at: www.schering.de/eng