Dow Declares <em>Force Majeure</em> for TEG, Tetra

Dow Declares Force Majeure for TEG, Tetra

Midland, MI - September 01, 2005

The Dow Chemical Company ("Dow") announced today that it has declared force majeure for all grades of triethylene glycol (TEG) and tetraethylene glycol (Tetra) from St. Charles Operations (SCO) in Hahnville, La., due to disruption of production, power, utilities, raw material supply and transportation systems resulting from "Hurricane Katrina." SCO is owned and operated by Union Carbide Corporation, a wholly-owned subsidiary of The Dow Chemical Company.

Production of TEG and Tetra at St. Charles Operations was idled as a standard precautionary measure, in preparation for Hurricane Katrina. Due to the severity of the hurricane's impact on the area and the devastation of the surrounding infrastructure, access to the site is extremely limited. Therefore, at this time, the full impact or duration of this situation cannot be determined.

"Once the impact of Hurricane Katrina is known, Dow will evaluate the situation and work to return to normal operations and activities as soon as it is safe and responsible to do so," said Antulio Borneo, Commercial Director, Dow Oxides & Glycols. "Dow's primary concern is the safety of our employees and the community."

Due to the impact on transportation, energy and raw material infrastructure on the U.S. Gulf Coast, it is likely that TEG and Tetra supply disruptions will persist even after services and transportation means are fully restored.

Dow has a total global production capacity of 4.3 billion pounds for ethylene oxide (EO) and 3.9 billion pounds for ethylene glycol (EG). Dow and its joint ventures operate the world's largest EO and EG facilities, and have capacity to produce more than 8.1 billion pounds of EO and 8.7 billion pounds of EG per annum, which is the world's largest supply of EO and EG.

Dow produces EO, MEG, diethylene glycol (DEG), triethylene glycol (TEG) and tetraethylene glycol (Tetra) for sale in the merchant market. MEGlobal, a joint venture between Dow and Petrochemical Industries Company (PIC) of Kuwait markets its own MEG and DEG production as well as that produced by Dow and Dow joint ventures. Dow markets the EO, TEG and Tetra it produces, as well as that produced by MEGlobal.

About The Dow Chemical Company
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

For Editorial Information:

Amy Ahlich
The Dow Chemical Company
(989) 636-3587

Josiah McClellan
Gibbs & Soell, Inc.
(212) 697-2600


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