BASF Reviewing Engelhard's Response

    LUDWIGSHAFEN, Germany--Jan. 25, 2006--BASF Aktiengesellschaft
(Frankfurt: BAS, NYSE: BF (ADR), LSE: BFA, SWX: AN), the world's
leading chemical company, today released the following statement:
    "BASF is aware that on January 23rd, 2006, Engelhard (NYSE: EC)
announced that its Board of Directors rejected BASF's all-cash offer
of $37 per share for all of Engelhard's outstanding shares and filed
its response to BASF's tender offer with the U.S. Securities and
Exchange Commission. BASF is in the process of reviewing Engelhard's
filings and will respond as appropriate."
    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
intelligent solutions and high-value products help its customers to be
more successful. BASF develops new technologies and uses them to open
up additional market opportunities. It combines economic success with
environmental protection and social responsibility, thus contributing
to a better future. In 2004, BASF had approximately 82,000 employees
and posted sales of more than EUR 37 billion. BASF shares are traded
on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF)
and Zurich (AN). Further information on BASF is available on the
Internet at www.basf.com.
    This press release is provided for informational purposes only and
is neither an offer to purchase nor a solicitation of an offer to sell
any securities of Engelhard Corporation. Any offers to purchase or
solicitation of offers to sell will be made only pursuant to a tender
offer statement (including an offer to purchase, a letter of
transmittal and other offer documents) which was filed with the U.S.
Securities and Exchange Commission ("SEC") on January 9, 2006.
Engelhard stockholders are advised to read these documents and any
other documents relating to the tender offer that are filed with the
SEC carefully and in their entirety because they contain important
information. Engelhard stockholders may obtain copies of these
documents for free at the SEC's website at www.sec.gov or by calling
Innisfree M&A Incorporated, the Information Agent for the offer, at +1
877 750 5837 (Toll Free from the U.S. and Canada) or 00800 7710 9971
(Toll Free from Europe).
    This press release contains forward-looking statements. All
statements contained in this press release that are not clearly
historical in nature or that necessarily depend on future events are
forward-looking, and the words "anticipate," "believe," "expect,"
"estimate," "plan," and similar expressions are generally intended to
identify 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
filed with the SEC.


    CONTACT: Michael Grabicki
             Phone     +49 621 60-99938
             Cell:     +49.172.749.18.91
             Fax       +49 621 60-92693
             michael.grabicki@basf.com
             or
             US media:
             Timothy Andree
             Phone:    973 245-6078
             Fax:      973 245-6715
             andreet@basf.com
             or
             Analysts/Investors:
             Magdalena Moll
             Phone:    +49 621 60-48002
             Fax:      +49 621 60-22500
             magdalena.moll@basf.com