Delta Electronics and BASF Develop Energy-Saving Refrigeration with Magnetic Technology

TAIPEI, Taiwan--(Business Wire)--
BASF and Delta Electronics, Inc. want to use environmentally friendly
magnetocaloric technology to develop new cooling systems and explore the
opportunities of magnetocaloric power generation. The cooperation partners are
working on materials and prototypes for cooling systems and power generators
intended to replace conventional compressor technology in refrigerators and air
conditioning systems.

"Our experts in material and process development work closely with scientists in
fundamental research at internationally renowned universities such as the TU
Delft and our innovative industrial partner, Delta Electronics," said Professor
Rainer Diercks, President, Chemicals Research & Engineering at BASF. "BASF has
already started the scale-up for the production of special, economically
feasible materials that already show a magnetocaloric effect at relatively low
temperatures and thus offer a broad range of applications. This is a major
contribution to the success of this project."

"We are delighted to team up with BASF," said Delta`s Vice Chairman and Chief
Executive Officer Yancey Hai. "Our joint development project with BASF is in
line with our mission to provide innovative, clean and efficient energy
solutions for a better tomorrow. We will generate new business opportunities
with our competency as a system integrator of efficient energy technologies."

Cooling systems based on the magnetocaloric effect have the potential of
significantly reducing energy consumption. The magnetic technology does away
with gaseous refrigerants and is therefore quieter and causes less vibration
than conventional compressor type refrigerators. It is also compact enough to
suit all conventional household refrigerators and commercial applications such
as computer cooling systems or air conditioners.

As long ago as 1880, the German physicist Emil Warburg observed that
ferromagnetic materials heat up when introduced into a magnetic field and cool
down again when removed. Magnetic field based cooling systems have existed since
the 1930s - but so far only in laboratories. Today, new materials in magnetic
refrigeration technology and more effective permanent magnets allow for a much
larger effect. Already at normal ambient temperatures, even weak magnetic fields
can generate particularly large temperature differences that can be utilized for
cooling by means of a heat exchange system. As a specialist in innovative
solutions for energy management, Delta wants to develop small coolers for
household appliances.

"We`re all ready to go. What we need now are prototypes for cooling systems to
demonstrate the energy-saving potential in everyday use," said Dr. Thomas Weber,
Managing Director of BASF Future Business GmbH, which coordinates material
optimization, product design and production processes. Initial estimates by
material researchers suggest that energy consumption can be cut by up to 50
percent by using a unit with magnetic refrigerating technology instead of a
conventional refrigerator.

Commercially viable applications for magnetocaloric cooling are only possible if
there is an abundant supply of affordable raw materials. BASF is working, for
example, on chemically stable manganese-iron compounds. These compounds are
characterized by low-volume expansion and a particularly large magnetocaloric
effect. At the same time, these materials are cheaper to produce than those
based on the metal gadolinium and its salts that have been used to date. The
production of larger amounts for industrial applications is currently being
tested.

One of the main research goals in the area of magnetocalorics is to save energy
in numerous potential applications ranging from cryoproduction in the process
industry, through automotive air conditioners, miniaturized cooling systems for
electronic components and refrigerators. "Cooling equipment accounts for about
one-fifth of domestic energy consumption. The refrigerator is in effect the most
important home appliance in terms of potential energy savings because every
household has one - and because it is one of the most power hungry appliances,"
explained Olaf Rogge, Magnetocalorics Project Leader at BASF Future Business, to
illustrate the scale of the challenge.

About BASF Future Business GmbH

BASF Future Business GmbH, a 100 percent subsidiary of BASF SE, was founded in
April 2001. It aims to open up business areas with above-average growth rates
that lie outside BASF`s current activities. The company focuses on
chemistry-based new materials, technologies and system solutions. BASF Future
Business GmbH commissions research from BASF`s R&D units and cooperates with
startup companies, industrial partners, universities and potential customers.
Further activities include acquisition of direct stakes, initiation of joint
ventures and provision of venture capital via the subsidiary BASF Venture
Capital GmbH. Further information on BASF Future Business is available on the
Internet at www.basf-fb.de.

About BASF

BASF is the world`s leading chemical company: The Chemical Company. Its
portfolio ranges from chemicals, plastics and performance products to
agricultural products, fine chemicals as well as oil and gas. As a reliable
partner BASF helps its customers in virtually all industries to be more
successful. With its high-value products and intelligent solutions, BASF plays
an important role in finding answers to global challenges such as climate
protection, energy efficiency, nutrition and mobility. BASF posted sales of more
than €62 billion in 2008 and had approximately 97,000 employees as of the end of
the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS),
London (BFA) and Zurich (AN). Further information on BASF is available on the
Internet at www.basf.com.

About Delta Group

Delta Group is the world`s largest provider of switching power supplies and
brushless fans, as well as a major source for power management solutions,
components, visual displays, industrial automation, networking products, and
renewable energy solutions. Established in 1971, Delta Group has sales offices
worldwide and manufacturing plants in Taiwan, China, Thailand, Japan, Mexico,
India and Europe. As a global leader in power electronics, Delta`s mission is,
"To provide innovative, clean and efficient energy solutions for a better
tomorrow." Delta is committed to environmental protection and has implemented
green, lead-free production and recycling and waste management programs for many
years. More information about Delta Group can be found at www.deltaww.com.

Delta Electronics
Jesse Chou, +886-2-87972088 #5520, or
+886-932-113-258
Senior Director of Corporate Communications
jesse.chou@delta.com.tw
or
BASF
Corporate Media Relations, +49 621 60-20916
Fax: +49 621 60-92693
presse.kontakt@basf.com
or
Cindy Wu, +886 2 2518 7602 (Taiwan)
Fax: +886 2 2518 7714
cindy-ingchuan.wu@basf.com

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