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Statement on New York Times Article: Bayer Acted Responsibly at All Times

Company denies allegations of misconduct in the 1980s

 
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Leverkusen (May 23, 2003)

Bayer denies the allegations, expressed in an article in the New York Times, of misconduct in the marketing of contaminated blood plasma products in the mid-1980s. The decisions of the former U.S. subsidiary Cutter, like those made by all other providers of such products some twenty years ago, were based on the best scientific information available at the time and the state of technology, and were consistent with the regulations in place. They cannot be judged retrospectively on the information available today.

After it had been discovered that it was possible for HIV to be transmitted by these hemophilia medicines, a new procedure was developed in which the virus was killed by heat treatment. However, there was initially great skepticism in the industry as well as among scientists, physicians, hemophilia societies, and patients about whether the heat treatment would also compromise the efficacy of the product. Once this concern had been cleared and the U.S. authorities had granted marketing approval, Cutter implemented the new procedure. Until that time, however, it was not possible to halt production of the untreated medicine despite the risks involved, because the product was vitally important for the patients' well-being. Production of the product finally came to an end in August 1984 and from June 1985 on, only heat-treated product was distributed.

The fact criticized by the New York Times in its article, that untreated medicine continued to be sold overseas while only the new version was available on the U.S. market, is due to the registration procedures of local authorities. Bayer was unable to market the treated product before approval had been granted, yet nonetheless had to ensure an uninterrupted supply of medicine to hemophilia patients.

Bayer therefore emphatically denies allegations that it deliberately exposed patients in some countries to the risk of infection with HIV. Bayer acted responsibly, ethically and humanely at all times. The infection of individual hemophiliacs was a tragic development that could not, even with hindsight, have been avoided.

In recent years, Bayer has repeatedly expressed its deep sorrow and sympathy to those hemophiliacs who were affected and the hemophilia community as a whole, and has contributed to compensation funds set up to help victims in various countries in which arrangements were made.

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.

Contact:

Tricia McKernan
Bayer Biological Products
+1-(0)919/316-6316
E-mail: tricia.mckernan.b@bayer.com



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