RNS Number:7762K
Bayer AG
07 May 2003

Bayer reports on the first quarter of 2003:

Operating result up 31 percent

  * Operating profit climbs 80 percent before one-time items
  * Net income rises 12 percent to EUR 586 million
  * Further substantial reduction in net debt



Leverkusen - The Bayer Group got off to a successful start in 2003. The
operating result from continuing operations improved by 31 percent to EUR 1,075
million in the first quarter. Disregarding one-time items, it advanced by 80
percent from EUR 464 million to EUR 833 million. "We are very satisfied with the
first quarter," commented Bayer Management Board Chairman Werner Wenning. "After
a year of transition and reorganization, it is clear that the acquisition of
Aventis CropScience and our extensive efficiency improvement programs are
bringing tangible benefits. Provided current economic conditions do not
seriously worsen, we expect to increase our operating result from continuing
operations by a double-digit percentage in 2003." Wenning also highlighted the
68 percent improvement in gross cash flow to EUR 1,402 million and the further
EUR 1.1 billion reduction in net debt since the end of 2002, to EUR 7.7 billion.

Sales from continuing operations grew by 5 percent in the first quarter of 2003
to EUR 7,356 million. Measured in local currencies, revenues increased by 16
percent. Group net income rose by 12 percent to EUR 586 million.

The future business area company Bayer HealthCare had sales of EUR 2,108 million
(compared to EUR 2,410 million in the first quarter of 2002) and an operating
result of EUR 480 million (Q1 2002: EUR 230 million). In the Pharmaceuticals and
Biological Products segment, the operating result climbed by 62 percent to EUR
199 million despite a 10 percent decline in sales that was mainly due to
currency effects. "Our dedication to improving profitability is now paying off,"
explained Wenning.

Sales of Bayer CropScience jumped by 92 percent to EUR 1,661 million, mainly due
to the Aventis CropScience acquisition. The operating result moved ahead to EUR
443 million (Q1 2002: EUR 144 million), also boosted by EUR 33 million in
divestment gains and by earnings on sales of the insecticide fipronil up to the
end of March. This product has since been divested as mandated by the antitrust
authorities.

Despite certain negative factors - mainly currency effects - earnings of Bayer's
two industrial business areas also improved thanks to the cost-structure
programs. Polymers recorded operating profit of EUR 74 million (Q1 2002: EUR 21
million) on sales down 2 percent to EUR 2,552 million. In the Chemicals business
area, the operating result increased by 3 percent to EUR 38 million despite a 7
percent decline in sales to EUR 872 million. Commented Wenning: "In the
industrial businesses, too, it is clear that in recent months we have created a
solid foundation for enhancing our performance."

Leverkusen,      May 7, 2003

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.


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