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The Company Passed Site Review for Industrial Products Production PermitSeptember 4, 2006

Review group of Jiangsu Provincial Industrial Products Production Permit Office carried out site review for production permit at BASF-YPC Company Limited on Aug 9-10, 2006. Some products requiring production permit produced by BASF-YPC Company Limited are ethylene, propylene, formic acid, n-butanol, acrylic acid, methyl acrylate and n-butyl acrylate. Review group listened to the report on preparation work, and inspected the Company's production, storage and lab facilities according to the requirement of two categories that are liquefied gases and dangerous chemicals, reviewed relevant procedures and records of quality, safety and environmental protection, and talked to relevant people to understand and verify the implementation status of company procedures. Review group agreed unanimously after discussion that BASF-YPC Company Limited passed the site review of Industrial Products Production Permit for Liquefied gases and Dangerous Chemicals.

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