Dow Updates Status of TEG and Tetra Production

Dow Updates Status of TEG and Tetra Production
Impact of Hurricane Rita expected to prolong constrained supply conditions

Midland, MI - September 29, 2005

The Dow Chemical Company ("Dow") provided an update today regarding its force majeure situation for all grades of triethylene glycol (TEG) and tetraethylene glycol (Tetra) that resulted from the precautionary shutdown of production at St. Charles Operations (SCO) in advance of Hurricane Katrina and the subsequent disruptions to transportation, natural gas, raw materials and supply resulting from the hurricane's impact. In addition, transportation infrastructure on the U.S. Gulf Coast had been shut down in advance of Hurricane Rita, further worsening these conditions and constraining supply capabilities.

"Production of these products at the SCO location has partially resumed," said John O. Smith, Commercial Manager, Ethylene Oxide & Higher Glycols. "Over the next several weeks, we will be working to ramp up our production at the site to normal levels, as swiftly as it is safe to do so. However, even after normal operations have resumed, disruptions in natural gas, feedstocks and transportation logistics throughout the U.S. Gulf Coast area, caused by both hurricanes, may continue to constrain supply."

"As a result of these circumstances, Dow will be forced to continue its force majeure and product allocation for TEG and Tetra for the time being," said Smith. "Based on current assessments, the collateral effect of the storms could prolong this situation by several weeks."

The Company is currently allocating TEG to its customers at 80 percent of average monthly volumes and Tetra at 100 percent. Changes to original timing estimates and allocation levels as announced following Hurricane Katrina may yet be revised. The Company will communicate any changes to this situation over the next several weeks.

St. Charles Operations is owned by Union Carbide Corporation, a wholly-owned subsidiary of The Dow Chemical Company.

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, 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 the monoethylene glycol (MEG) and diethylene glycol (DEG) produced by Dow and Dow joint ventures, as well as its own MEG and DEG production. 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

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


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