Dow Announces Price Increase and Contract Benchmark for Higher Glycols

Midland, MI - August 14, 2006

The Dow Chemical Company will increase its prices for all grades of triethylene glycol (TEG) and tetraethylene glycol (Tetra) in North America by $0.07 per pound, effective immediately for non-contract customers, and September 1, 2006 or as contracts allow for contract customers.

Additionally, Dow announces the following North America Contract Benchmark for TEG, effective September 1, 2006: TEG (all grades)- $0.80/lb FOB North America producing plant; buyer absorbs freight.

Dow produces ethylene oxide (EO), monoethylene glycol (MEG), diethylene glycol (DEG), TEG and Tetra for sale in the merchant market. MEGlobal, a joint venture between Dow and Petrochemical Industries Company 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 diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. 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