Volkswagen AG and Archer Daniels Midland Announce Biodiesel Research Agreement

DETROIT, Mich., Jan. 5, 2004 -- Volkswagen AG and Archer Daniels Midland Company today announced the creation of a joint research agreement aimed at further developing and utilizing biodiesel fuels for the automotive industry. This Agreement marks the first time that one of the world's leading automakers has joined forces with a major global agricultural company to cooperate on the development of next-generation clean renewable fuels.

Biodiesel is a fuel mixture made by combining diesel petroleum with natural or renewable resources such as rapeseed oil (commonly known as "canola") or soybean oil. The use of such cleaner burning biodiesel, which can power conventional diesel engines, is environmentally friendly and substantially reduces emissions of carbon monoxide and particulate matter. As an alternative and renewable fuel, biodiesel of a special quality level can also reduce overall global dependence on fossil fuels.

"Given the tremendous environmental, economic and quality-related benefits of increased biodiesel usage, we believe this Joint Research Agreement will go a long way toward advancing and furthering the development of this vital renewable fuel choice," said Dr. Bernd Pischetsrieder, Chairman of the Board of Management of Volkswagen AG. He added that, "Volkswagen has been a leader in the development of advanced clean diesel engines and this Agreement represents Volkswagen's commitment to introducing clean burning and renewable fuels into the automotive industry."

Mr. G. Allen Andreas, Chairman and Chief Executive of Archer Daniels Midland Company, said, "Biodiesel is one of the most promising renewable fuels on the horizon. This Agreement clearly demonstrates the shared commitment of both our companies to developing environmentally friendly next-generation alternative fuels that address global energy needs. We are proud to enter into this agreement together with Volkswagen and believe that advances in biodiesel will benefit the automotive industry, the driving public, farmers and the environment as a whole."

Headquartered in Wolfsburg, Germany, Volkswagen AG is one of the world's largest producers of passenger cars and Europe's largest automaker. Volkswagen AG employs over 300,000 people worldwide and had total sales in excess of euro 64 billion for the first three quarters of 2003. Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Michigan and is a subsidiary of Volkswagen AG. Volkswagen of America and its affiliates employ approximately 3,000 people in the United States and are responsible for the sale and service of Audi, Bentley, Lamborghini and Volkswagen products.

Archer Daniels Midland Company (ADM) is a world leader in agricultural processing. The Company is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in soy meal and oil, ethanol, corn sweeteners and flour. In addition, ADM is building a position in such value-added products as specialty food ingredients, bio-products and nutraceuticals (such as Vitamin E and sterols). Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 270 processing plants and net sales for the fiscal year ended June 30, 2003 of $30.7 billion. Additional information can be found on ADM's Web site at http://www.admworld.com/ .