Kiel, June 18, 2008 – Important visitors were on hand to commemorate a major production milestone at KVP Pharma + Veterinär Produkte GmbH in Kiel: Minister-President Peter Harry Carstensen and the Mayoress of Kiel, Angelika Volquartz, joined customers, neighbors and employees of the Bayer HealthCare AG subsidiary on Wednesday, June 18, 2008, to celebrate the production of more than one billion pipettes filled with liquid animal health products. Small and easy to administer, these dosage units serve primarily as vehicles for animal health products that protect against fleas, ticks and other pests.

“One billion pipettes is an incredible contribution to the battle for animal health. I would like to congratulate a strong company on reaching this proud and impressive milestone. KVP Pharma und Veterinär Produkte is an important employer in the state capital of Kiel and one that lives up to its social responsibility commitments by providing vocational training to young people,” declared Minister-President Peter Harry Carstensen during the ceremony.

Dr. Hartmut Klusik, Member of the Board of Management of Bayer HealthCare AG and Head of Production for all Bayer HealthCare sites worldwide, also paid tribute to KVP’s success. One of every two animal health care products sold by Bayer worldwide is manufactured in Kiel. “Innovative healthcare products take more than just scientific research, development and clinical work. They are also the result of daily precision work in production. After all, the quality of each individual medication must be ensured in every phase of production.”

A number of global developments suggest that veterinary medicine will become even more important in the future, said Klusik. “The bond between people and their pets is growing ever closer. More and more animal owners are placing great emphasis on providing good medical care for their pets.” Added to this is the fact that the sustained population growth and rising incomes in emerging nations are leading to an upsurge in demand for animal-based food products. Accordingly, the demand for livestock medication is steadily increasing as well, continued Klusik.

In his speech, Managing Director of KVP Olaf Assenheimer thanked everyone involved – especially his employees, “who have demonstrated a high level of expertise and willingness to perform over the course of many years.” The billion-pipette milestone is clear evidence of their accomplishments: “Roughly estimated, if all of the pipettes produced here were lined up end to end, they would stretch nearly 1.5 times around the world. That is a spectacular success for our site,” said Assenheimer. He also extolled KVP’s impressive development since its founding.

The company began production in 1974 with 26 employees and has since become one of Bayer HealthCare AG’s key manufacturing and logistics sites. Pharmaceutical products for people and animals are produced here in modern facilities by a highly qualified team and dispatched to over 100 countries. Today, more than 460 workers are employed on the company’s ten-hectare grounds along the banks of the Kiel Canal. The company invests some EUR 5 million in expansion and modernization of its facilities each year.

As part of the festivities, the Uhlenkrog Animal Shelter in Kiel was presented with a voucher for anti-flea medication for its approximately 150 inhabitants. The voucher is to be redeemed by the veterinarian in charge of the animals, who can thus ensure they remain flea-free all summer long.

A fun-filled program accompanied the celebration on the KVP grounds: animal owners were welcome to bring their pets for a free check-up by veterinarians from Bayer HealthCare AG. The Uhlenkrog Animal Shelter, represented by both helpers and animals, was on site to provide information about its work. Visitors also enjoyed a competition, drinks and snacks while learning important facts about animal health.

About Bayer HealthCare

Bayer HealthCare, a subgroup of Bayer AG, is one of the world’s leading innovative companies in the health care and medical products industry. The company combines the activities of the Animal Health, Consumer Care, Diabetes Care, and Pharmaceuticals divisions. Bayer HealthCare’s aim is to discover, develop, manufacture and market products that will improve human and animal health worldwide. With sales of €956 million (2007), the Animal Health Division is one of the world’s leading manufacturers of veterinary drugs. The division produces and markets approximately 100 different animal health and care products worldwide for livestock and companion animals.

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 annual and interim reports to the Frankfurt Stock Exchange and in our reports filed 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.

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