euro adhoc: Schering AG / Mergers - Acquisitions - Takeovers / KPMG values Schering AG share at EUR 87.63, Bayer offers compensation of EUR 89.00 per Schering AG share

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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26.07.2006

In connection with the takeover of Schering AG, Berlin, Germany, by
the Bayer Group, a domination and profit and loss transfer agreement
between Dritte BV GmbH as the controlling company and Schering AG as
the dependent company is to be proposed for approval at an
extraordinary General Meeting of Schering AG planned for September
2006.

In this regard, the Executive Boards of Schering AG and Bayer AG as
well as the management of Dritte BV GmbH have instructed KPMG
Deutsche Treuhand-Gesellschaft Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft with the valuation of Schering AG.
KPMG has today informed the Executive Board of Schering AG that, upon
completion of their valuation work, the value of Schering AG amounts
to EUR 16.723 billion. This is equivalent to a value of EUR 87.63 per
share. This value is above the volume-weighted average share price of
the past three months and represents an appropriate compensation
payment in the view of KPMG. According to KPMG, fair compensation for
future omitted dividend amounts to EUR 3.62 per share. KPMG based its
valuation on the principles of the Standard S1 of the Institute of
Chartered Accountants for the implementation of company valuations
(IDW S1). KPMG has already taken into account the results of Schering
AG as per June 30, 2006.

The Executive Board of Bayer AG has nonetheless offered to the
Executive Board of Schering AG to agree on a compensation payment of
EUR 89.00 per share in the domination and profit and loss transfer
agreement. As compensation for future omitted dividend, the
guaranteed dividend in the amount of EUR 3.62 as determined by KPMG
shall be provided for.

The Executive Board and the Supervisory Board of Schering AG will
examine the Bayer offer and the KPMG report and will decide on the
domination and profit and loss transfer agreement over the next few
days.

Legal Instruction

After the proposed offer of cash compensation by Dritte BV GmbH, a
wholly owned subsidiary of Bayer Aktiengesellschaft, in connection
with the planned domination and profit and loss transfer agreement
between Dritte BV GmbH and Schering Aktiengesellschaft, is made
available to Schering Aktiengesellschaft shareholders, Schering
Aktiengesellschaft will file with the U.S. Securities and Exchange
Commission a solicitation/recommendation statement on Schedule 14D-9
with respect to the offer of cash compensation. Holders of ordinary
shares and American depositary shares of Schering Aktiengesellschaft
are advised to read such solicitation/recommendation statement when
it becomes available because it will contain important information.
Holders of ordinary shares and American depositary shares of Schering
Aktiengesellschaft will be able to obtain such
solicitation/recommendation statement and other filed documents when
they become available free of charge at the U.S. Securities and
Exchange Commission’s website (http://www.sec.gov) and at Schering
Aktiengesellschaft’s website (http://www.schering.de).

end of announcement euro adhoc 26.07.2006 17:47:42
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ots Originaltext: Schering Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Oliver Renner
Leiter Corporate Business Communication
Tel.: +49 (0)30 468 12431
Fax: +49 (0)30 468 16646
E-Mail: oliver.renner@schering.de

Branche: Pharmaceuticals
ISIN: DE0007172009
WKN: 717200
Index: DAX, CDAX, HDAX, Prime All Share
Börsen: Baden-Württembergische Wertpapierbörse / regulated dealing
Niedersächsische Börse zu Hannover / regulated dealing
New York / ADR
Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / official dealing
Hamburger Wertpapierbörse / official dealing
Börse Düsseldorf / official dealing
Bayerische Börse / official dealing