Dow Publishes its 2005 Report to Stockholders

Midland, MI - March 24, 2006, In his annual letter to shareholders, Dow Chemical President, Chief Executive Officer and Chairman-elect Andrew Liveris, summed up 2005 as a year of outstanding performance: record revenues, record earnings, a much-strengthened balance sheet and the Company’s third consecutive year of margin recovery.

“Against the backdrop of relentlessly escalating feedstock and energy costs and two major hurricanes that caused significant disruption to our Company’s manufacturing sites on the U.S. Gulf Coast, this was a truly remarkable achievement - and a tribute to the hard work of Dow people throughout the world,” said Liveris.

"In a rapidly consolidating and globalizing industry, we believe there are few companies with Dow’s array of strengths, including our geographic reach, business and product mix, range of customers and markets and global manufacturing capability.

“We have the strategy, the people and the resources to succeed now and in the future.”

Liveris’ letter was issued today as part of Dow’s 2005 10-K and Stockholder Summary, which has been mailed to all Dow stockholders along with the 2005 Corporate Report and Dow’s 2006 Proxy Statement. Copies of all three documents are available on Dow’s website at www.dowannualreport.com.

Looking ahead, Liveris underscored his confidence that Dow’s existing strategy will bring long-term value to the Company and its shareholders.

"In order to increase the value of our Company’s stock, we need to do two things better: grow earnings across the industry cycle and generate more consistent earnings from year to year.

“So we will continue to concentrate on building low-cost, world-class assets with partners who will not only share the investment, but also offer local expertise and access to advantaged feedstocks. We will maintain the benefits of site and product integration and leveraged services. And we will grow our Performance businesses both organically and through bolt-on acquisitions, using different business models, including more businesses that focus on specific end-use markets,” he said.

This strategy, Liveris went on to say, should result in ever-higher levels of performance, generating value for all of the Company’s stakeholders - investors, customers, employees and communities - as Dow pursues its vision to be the largest, most profitable and most respected chemical company in the world.

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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Chris Huntley

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