Dow Epoxy Announces Allyl Chloride Expansion

Midland, MI - November 21, 2006 - Dow Epoxy, a business unit of The Dow Chemical Company (“Dow”), announced today a $1.6 million debottlenecking project that will add 20 kilo tons (45 million pounds) per annum (KTPA) in allyl chloride manufacturing capacity at its plant in Freeport, Texas. The added capacity, expected to be available in the third quarter of 2007, brings total capacity at the allyl chloride plant to 360 KTPA (794 million pounds).

“We view this incremental expansion as a strategic investment to meet the growing needs of customers worldwide,” said Tom Heldt, Dow Epoxy global product manager for liquid epoxy resins and global marketing manager for intermediates. “The market has grown increasingly tight and we expect strong demand ahead. By adding capacity, we will meet this demand and give our customers the assurance that they will have the product needed to pursue their growth goals.”

Heldt said Dow expects to see a boost in demand for allyl chloride as a result of growth in the water treatment sector, with developing countries giving greater attention to their water infrastructure. Allyl chloride is an important reactant for chemicals used in water and wastewater treatment processes.

In addition to feeding the external market, the allyl chloride expansion will allow Dow to continue meeting its internal requirements for the manufacturing of epichlorohydrin and other important intermediates, resins and chemicals. The expansion will give Dow the flexibility to sell the allyl chloride or boost its epichlorohydrin output at the Freeport plant by as much as 22 KTPA (48.5 million pounds).

Heldt points to the expansion as a good example of Dow Epoxy’s ability to respond to the needs of the market. “Not all producers have the ability to add this kind of incremental capacity so quickly and cost-effectively as Dow,” he says. “This is thanks to the high quality of our manufacturing assets and of our world-class infrastructure at Texas Operations, Dow’s largest integrated site. We are also putting to work more than 30 years of operational and technological experience in allyl chloride and epichlorohydrin production.”

About Dow Epoxy

Dow Epoxy is a leading global producer of epoxy resins, intermediates and specialty resins. The business offers differentiated solution-based products and innovative technologies and services to customers spanning a wide range of market segments, including: powder coatings, marine and protective coatings, packaging coatings, coil coatings, automotive coatings, UV curable coatings, civil engineering, structural and corrosion-resistant composites, adhesives, electrical laminates and electrical castings/potting and encapsulation/tooling. More information about Dow Epoxy is available at www.dowepoxy.com and www.epoxyavenue.com.

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.

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David Cameron

Dow Epoxy

The Dow Chemical Company

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