Dow Begins Construction of New Specialty Alkanolamines Unit in Plaquemine, La.

Midland, MI - January 17, 2006

The Dow Chemical Company ("Dow") today announced that it has begun construction of its new specialty alkanolamines facility in Plaquemine, La. The unit, which is scheduled to come on-line in the first half of 2007, will produce isopropanolamines and alkyl alkanolamines, which are used in gas treating and many other consumer and industrial applications.

"This investment demonstrates Dow's commitment to our gas treating business, which is seeing robust growth in the global liquefied natural gas industry and the revitalization of North American refining operations," says Kevin Dillan, global business director, Dow Amines. "It also strengthens our position as one of the leading global suppliers of isopropanolamines by ensuring that our capacity is adequate to meet customer demand well into the future and by lowering our cost to serve compared with existing facilities."

The new plant will have extensive product-mix flexibility. This flexibility will allow the business to meet changing market needs and, at the same time, reduce levels of co-products and by-products that are common in today's operations.

"Plaquemine offers Dow an efficient capital investment opportunity due to the on-site production of key raw materials - ethylene oxide and propylene oxide," says Dillan. "This facility will enable us to serve the broader global market due to its economy of scale and flexibility."

Dow is a leading manufacturer, marketer and consumer of Specialty Alkanolamines, making this a strategic business for Dow. With this investment, all of Dow's North American amines production will be in highly integrated petrochemical complexes, thereby ensuring low-cost and reliable operations.

Dow Amines has production facilities in North America (Hahnville, La.; Midland, Mich.; South Charleston, W.Va.; Freeport, Texas; and Seadrift, Texas), Europe (Terneuzen, The Netherlands), as well as in Asia Pacific at OPTIMAL Chemicals (Malaysia) Sdn. Bhd, a joint venture of Union Carbide Corporation and Petroliam Nasional Berhad.

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 our business web sites at www.dowamines.com and www.dowgastreating.com.

For Editorial Information:

Jennifer Heronema
The Dow Chemical Company
(989) 638-5323