Dow Permanently Shuts Down TDI Production Train at Freeport, Idled in 2001

Midland, MI - March 20, 2006, The Dow Chemical Company announced today that it will permanently cease production at its Train I toluene diisocyanate (TDI) production line at Texas Operations in Freeport, Texas. Effective immediately, the 130 million pounds per year train will be permanently shut down. The train was idled in December 2001 due to weak demand and abundant market supply for TDI at the time. It is one of two production trains at the Freeport site.

“To return production levels to pre-idling levels would require significant investment, which is not economically viable long-term,” said Steven English, business director for Dow’s isocyanates business. “Despite some improvements and recovery in raw material and energy costs since third quarter of 2005, feedstock prices remain volatile. Moreover, we don’t anticipate these costs to ease up in 2006. Pricing is still not where it needs to be and margins have not yet reached the levels necessary to justify reinvestment.”

Dow plans to continue operating Train 2 also located in Freeport.

Dow is the world’s largest producer of polyether polyols, a leading producer of quality aromatic isocyanates (such as MDI and TDI) and a major supplier of propylene oxide, an essential component of polyether polyols. Dow’s polyurethanes products are used in rigid foams, flexible foams, adhesives, sealants, coatings, elastomers, as well as many other applications.

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 more information, visit www.dowpolyurethanes.com.

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Myra Dean

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