BASF-YPC Company Limited hosted "IPS Second Environmental Dialogue" among BASF-YPC Company Limited,the local authorities and representatives of residents from Luhe Districts on June 18, 2004 in Yangtze Guest House. Dr.Blumenberg, president of the company, introduced the company's values and Sustainable Development strategy. IPS project is designed and constructed according to the strict standards and requirements of the National and International codes in order to achieve the further development and profits and minimize environmental impact at the same time. Therefore, IPS project adopts clean production process and advanced equipments to control and reduce pollutants.

Mr. Shao Xuehua, Director of EHS/Utilities Department, introduced environmental protection measures of the company. Meanwhile, the company has set up a comprehensive environment protection organization and management system, performing effective self-management and supervision.

The atmosphere of the open meeting was cordial, and the representatives expressed their opinions frankly. They highly praised and advocated the company's communication with the authorities and local residents through open dialogue, the company gives the public the rights of knowing and participating and wins the public trusts at the same time.

Finally, Dr. Blumenberg declared to hold regularly open-communication to report our activities, achievements of safety and environmental performance to eliminate misunderstanding and appreciate public input or comment, which could contribute to the continuous improvement of environmental protection performance of the company. The company expects to strengthen the cooperation with all relevant parties to ensure company's "Sustainable Development".