RNS Number:2631T
Bayer AG
15 December 2003









Bayer predicts EUR 2.2 billion in impairment charges



In connection with the strategic realignment, the planned stock-exchange listing
of "NewCo" and changes in the operating conditions for parts of the industrial
businesses remaining with Bayer, the Group plans to take a total of about EUR
2.2 billion in asset impairment charges in the fourth quarter of 2003. The
impact of these special items on EBIT is expected to be about EUR 2 billion,
while the non-operating result will be diminished by some EUR 200 million.



In the polymers and chemicals businesses these charges should amount to EUR 1.7
billion, the major part of which relates to the activities to be transferred to
the future "NewCo." The figure also includes expenses for the consolidation of
production facilities. The Bayer HealthCare subgroup plans to report charges of
about EUR 500 million, related partly to the consolidation of pharmaceutical
research facilities.



The expected charges to the non-operating result arise from write-downs of the
financial interests in DyStar and the research company Curagen.



The impairment charges are non-cash items, and as such affect neither cash flows
nor Bayer AG's dividend potential.



In light of the planned impairment charges, the Bayer Group expects to post
negative EBIT and a net loss for the full year 2003. Bayer continues to predict
that EBIT before these special items will increase by a double-digit percentage
as previously forecast.







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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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