Dow Increases North American Ethylene Oxide Prices

Midland, MI - May 16, 2007

The Dow Chemical Company will increase its list and off-list prices for ethylene oxide (EO) in North America by $0.05 per pound, effective June 1, 2007, or as otherwise allowed by individual contract terms.

This price increase is due to the recent rise and continued volatility in raw material and energy costs, in addition to a continued tight supply-demand situation for EO and its derivatives.

Dow produces EO, monoethylene glycol (MEG), diethylene glycol (DEG), triethylene glycol (TEG) and tetraethylene glycol (Tetra) for sale in the merchant market. MEGlobal, a joint venture between Dow and Petrochemical Industries Company of Kuwait, markets its own MEG and DEG production as well as that produced by Dow and Dow joint ventures. Dow markets the EO, TEG and Tetra it produces, as well as that produced by MEGlobal.

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For Editorial Information:

Amy Ahlich
The Dow Chemical Company
(989) 636-3587

Anisha Shah
Gibbs & Soell, Inc.
(212) 697-2600, ext. 1228
ashah@gibbs-soell.com