UNITED STATES OF AMERICA                                 v. BAYER CORPORATION,                   Defendant.

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No. CR 04-0318 VRW INFORMATION VIOLATION: Title 15, United States Code, Section 1 (Price Fixing) San Francisco Venue

The United States of America, acting through its attorneys, charges:

1. BAYER CORPORATION is made a defendant on the charge stated below.

2. Beginning in or about February 1998 and continuing until in or about December 2002 defendant and co-conspirators participated in a combination and conspiracy to suppress and eliminate competition by maintaining and increasing the price of aliphatic polyester polyols made from adipic acid sold in the United States and elsewhere. The combination and conspiracy engaged in by the defendant and co-conspirators was in unreasonable restraint of interstate and foreign trade and commerce in violation of Section 1 of the Sherman Act (15 U.S.C. § 1).

3. The charged combination and conspiracy consisted of a continuing agreement, understanding, and concert of action among the defendant and co-conspirators, the substantial term of which was to suppress and eliminate competition by maintaining and increasing the price of aliphatic polyester polyols made from adipic acid in the United States and elsewhere.

4. For the purpose of forming and carrying out the charged combination and conspiracy, the defendant and co-conspirators did those things that they combined and conspired to do, including, among other things:

1. participating in conversations and meetings to discuss prices of aliphatic polyester polyols made from adipic acid to be sold in the United States and elsewhere;

2. agreeing, during those conversations and meetings, to raise and maintain prices of aliphatic polyester polyols made from adipic acid to be sold in the United States and elsewhere;

3. participating in conversations and attending meetings concerning implementation of and adherence to the agreements reached;

4. issuing price announcements and price quotations in accordance with the agreements reached; and

5. exchanging information on the sale of aliphatic polyester polyols made from adipic acid in the United States and elsewhere.

5. The defendant is an entity organized and existing under the laws of the state of Indiana, with its principal place of business in Pittsburgh, Pennsylvania. During the period covered by this Information, the defendant or its subsidiaries engaged in the business of producing and selling aliphatic polyester polyols made from adipic acid in the United States and elsewhere.

6. A corporation and various individuals, not made defendants in this Information, participated as co-conspirators in the offense charged herein and performed acts and made statements in furtherance of it.

7. Whenever in this Information reference is made to any act, deed, or transaction of any corporation, the allegation means that the corporation engaged in the act, deed, or transaction by or through its officers, directors, employees, agents, or other representatives while they were actively engaged in the management, direction, control, or transaction of its business or affairs.

8. Aliphatic polyester polyols made from adipic acid are used to improve tensile strength and resistance to abrasion in a number of products, including flexible foams, synthetic leather and other coatings, adhesives, and rigid plastics. These polyols are used primarily in shoe soles, belts, seals and gaskets, and coatings on plastic grocery bags to prevent sticking.

9. During the period covered by this Information, the defendant and co-conspirators manufactured, sold, and distributed aliphatic polyester polyols made from adipic acid in a continuous and uninterrupted flow of interstate and foreign trade and commerce to customers located in states or countries other than the states or countries in which the defendant and co-conspirators produced aliphatic polyester polyols made from adipic acid.

10. The business activities of the defendant and co-conspirators that are the subject of this Information were within the flow of, and substantially affected, interstate trade and commerce.

11. The combination and conspiracy charged in this Information was carried out within the five years preceding the filing of this Information.

ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.

Dated: Sept. 29, 2004

_______________/s/________________ R. Hewitt Pate Assistant Attorney General _______________/s/________________ James M. Griffin Deputy Assistant Attorney General _______________/s/________________ Scott D. Hammond Director of Criminal Enforcement United States Department of Justice Antitrust Division _______________/s/________________ Kevin V. Ryan United States Attorney Northern District of California

_______________/s/________________ Phillip H. Warren Chief, San Francisco Office _______________/s/________________ Marc Siegel Assistant Chief, San Francisco Office _______________/s/________________ Barbara J. Nelson Carolyn Galbreath Attorneys U.S. Department of Justice Antitrust Division 450 Golden Gate Avenue Box 36046, Room 10-0101 San Francisco, CA 94102 (415) 436-6660