Dow Advances Strategy in Asia Pacific

Asset Light Investment to Spur Performance Business Growth

Midland, MI - October 20, 2006 - The Dow Chemical Company (Dow) announced today that it plans to move ahead with a joint venture liquids cracker in Thailand; an asset light project in a key emerging geography that will provide propylene and other building blocks to help drive the growth of the Company’s Performance businesses across Asia Pacific. The new facility will be developed jointly with The Siam Cement Public Company Limited (SCC).

A number of down-stream facilities will be developed by Dow in conjunction with the new development. Among those under consideration are a hydrogen peroxide to propylene oxide (HPPO) plant – technology developed by the Company in collaboration with BASF – and a range of PO derivatives. PO is used to produce propylene glycol, polyurethanes and glycol ethers. The new cracker will also allow for the expansion of the existing higher alpha olefins polyethylene joint venture facility, which would produce specialty polyolefin products using Dow’s state-of-the-art process and catalyst technology.

Importantly, the proximity of the new facility to the existing Dow-SCC complex at Map Ta Phut in Rayong province will enable existing assets, capabilities and infrastructure to be leveraged, creating a source of advantaged raw materials for downstream derivatives businesses.

“This project supports Dow’s strategic agenda on several fronts,” said Dow chairman and chief executive officer, Andrew Liveris. “It strengthens the Company’s presence in Asia Pacific; it provides a competitive platform on which to develop a range of higher margin Performance business opportunities; and it is another example of our asset-light investment approach, through which we will grow the Basics businesses in joint ventures with strategic partners like SCC.”

The cracker, which is expected to commence operations in 2010, builds on Dow’s long-standing successful business relationship with SCC and is the latest in a series of joint venture projects between one of the world’s largest chemical companies and Thailand’s leading manufacturing company. The two companies signed their first joint venture agreement in 1987, and have since formed a total of five joint venture companies, producing polyols, synthetic latex, polystyrene, styrene monomer and polyethylene at the Map Ta Phut site. The SCC-Dow Group of companies has also invested in the ethylene cracker operated by Siam Cement at the site.

About SCC

SCC is Thailand’s largest industrial conglomerate with leading market position in each of its core businesses of Chemicals, Paper, Cement, Building Materials, and Distribution. Siam Cement’s Chemicals business is one of the leading players in Asia Pacific region and serving world wide customers. Today, SCC through its Chemicals business unit, continues to expand its business presence into international markets and emphasizes on innovation in products/services, processes, and business models to delight its customers. More information about SCC can be found at www.siamcement.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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Chris Huntley

The Dow Chemical Company

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