14 June 2006 - Pfizer Signs Agreement with Bayer to License Compounds for Potential Treatment of Obesity, Diabetes and Related Disorders

NEW YORK, and LEVERKUSEN, GERMANY - Pfizer Inc. and Bayer Pharmaceuticals Corporation (BPC), the U.S. subsidiary of Bayer HealthCare, announced today that they have entered into an agreement granting Pfizer exclusive worldwide rights to Bayer's DGAT-1 inhibitors, an innovative class of compounds that modify lipid metabolism. The lead compound in the class, BAY 74-4113, is a potential treatment for obesity, type 2 diabetes and other related disorders. The compound is currently in Phase I clinical development in Europe.

"Obesity and diabetes are expanding hand-in-hand at near epidemic levels throughout the world and the need for new treatment options for patients has never been greater," said Martin Mackay, Ph.D., senior vice president, Worldwide Research & Technology for Pfizer. "We are excited about the potential of the DGAT-1 inhibitors in the areas of obesity and type 2 diabetes which complement Pfizer's ongoing metabolic disease research programs."

According to Dr. Gunnar Riemann, Head of Bayer HealthCare's Pharmaceuticals Division, "This licensing agreement with Pfizer validates the quality of our expertise in research. Our decision to outlicense this promising candidate is in line with our focus on specialty pharmaceuticals."

An estimated 194 million people have either type 1 or 2 diabetes, according to the International Diabetes Federation, and the World Health Organization estimates that by 2025 the number of people with diabetes will exceed the current U.S. population. Type 2 diabetes is the most common and fastest growing form of the disease and it is often complicated by obesity.

Under the terms of the agreement, Bayer will receive an upfront fee, milestone payments and royalties on sales of any compounds successfully commercialized. Specific financial terms were not announced. The agreement is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and is expected to close in the second half of 2006.

Bayer HealthCare
Bayer HealthCare, a subsidiary of Bayer AG, is one of the world's leading, innovative companies in the health care and medical products industry based in Leverkusen/Germany. In 2005, the Bayer HealthCare subgroup generated sales amounting to some 9.4 billion Euro. Bayer HealthCare employed 33.800 people worldwide in 2005.

The company combines the global activities of the divisions Animal Health, Consumer Care, Diabetes Care, Diagnostics and Pharmaceuticals. Since January 1, 2006 the new Pharmaceutical Division consists of the former Biological Products and Pharmaceutical Division and now comprises three business units: Hematology/Cardiology, Oncology and Primary Care.

Bayer HealthCare's aim is to discover and manufacture products that will improve human and animal health worldwide. The products enhance well-being and quality of life by diagnosing, preventing and treating diseases. 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.