Bayer AG (Bayer) is a global company offering a wide range of products, including ethical pharmaceuticals, diagnostics and other health care products, agricultural products and polymers. Bayer's business operations are organized in three subgroups: Bayer HealthCare - consisting of four segments: Pharmaceuticals, Biological Products (renamed Pharmaceuticals as of January 1, 2006); Consumer Care; Diabetes Care, Diagnostics; and Animal Health; Bayer CropScience - consisting of the Crop Protection segment and the Environmental Science, BioScience segment; and Bayer MaterialScience - comprising the Materials segment and the Systems segment. For the year ended December 31, 2005, Bayer reported total sales from continuing operations of €27,383 million, an operating result from continuing operations of €2,812 million and net income of €1,597 million. As of December 31, 2005, Bayer employed 93,700 people worldwide. Based on customers' location, Bayer's activities in Europe accounted for 43 percent of the Group's total sales in 2005; North America for 27 percent; the Asia/Pacific region amounted to 17 percent; and the Latin America/ Africa/Middle East region accounted for 13 percent of total sales. Bayer's recently announced acquisition of Schering AG will allow the company to achieve its stated aim of substantially strengthening its health care business as the primary growth engine. The acquisition would create a leader in the area of specialty pharmaceutical products. It would produce a health care leader of international standing, moving up to rank among the top 12 in the world. With a significantly higher research budget, Bayer could also greatly accelerate growth in its pharmaceutical core indications.