Bomlitz, Germany - June 26, 2008

Dow Wolff Cellulosics, a business unit of The Dow Chemical Company, will raise the price of its products by as much as an additional 25 percent in July. This is to be implemented over and above the June 1 price increase announcement.

Across a significant portion of our portfolio, demand continues to be strong driving further need for investment and increased raw materials consumption. In response to these investments as well as dramatic increases in raw material, transportation, packaging and energy costs, Dow Wolff Cellulosics today announced that it will increase prices globally across its entire product portfolio by up to 25 percent, depending on specific grades and market segments. The price increases are effective immediately as of July 1, 2008 or as contracts allow.

The products impacted by this announcement include the entire cellulose derivatives line and several companion chemistries:

• Methylcellulosics: METHOCEL™ and WALOCEL™ Hydroxypropyl Methylcellulose (HPMC), Hydroxyethyl Methylcellulose (HEMC), Hydroxyethylcellulose (HEC) and Methyl Cellulose (MC) ethers
• Other Cellulose Ether products: ETHOCEL™ Ethylcellulose (EC) and WALOCEL™ C Carboxymethyl Cellulose (CMC)
• Companion chemistries: POLYOX™ Water Soluble Resins, DOW™ Latex Powders and UCON™ Fluids

"Price adjustments will partially offset a number of cost pressures which we cannot ignore, such as step change in cellulose pulp costs and tight pulp supply, record level hydrocarbon & energy costs, and sharp freight increases across our business," said Eunice Heath, global marketing and sales director, Dow Wolff Cellulosics. "In addition, they will allow us to continue to invest in products and technologies that will fulfill the future needs of our customers and markets."

Andrew N. Liveris, Dow chairman and CEO, described the steps as "extremely unwelcome but entirely unavoidable" as the global cost of oil, natural gas and hydrocarbon derivatives surge ever higher.

About Dow Wolff Cellulosics

A preferred development partner in its markets, Dow Wolff Cellulosics supplies high-performance cellulose derivatives and complementary chemistries, and is expert in formulation know-how for a broad variety of end-use products in construction, food, personal care, pharmaceuticals, paint and other specialty industrial applications.

A business unit of The Dow Chemical Company, Dow Wolff Cellulosics was created on July 01, 2007 as a new business encompassing the activities of Wolff Walsrode and Dow's Water Soluble Polymers business. On a pro-forma basis, Dow Wolff Cellulosics had combined revenues of more than US $1 billion in 2006 and employed 2,200 people worldwide. More details about Dow Wolff Cellulosics are on the Web at www.dowwolffcellulosics.com.

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For Editorial Information:

Michael Heinz
The Dow Chemical Company
+49-5161-44-3483