A MAG-nificent Anniversary!

Dow Texas Operations Celebrates its 65th Year of Commercial Production

Freeport, TX - January 21, 2006

On the afternoon of January 21, 1941 at Dow's Plant A in Freeport, Texas, an innovation was achieved that would make technological history, help the Allies win World War II and cement the chemical industry's existence on the Gulf Coast.

That day Dow was able to take magnesium from seawater - marking the first time man had successfully mined the ocean for metal. At 1:45 PM, Dow operator Clarence Hock poured the first ingot as a crowd gathered to watch.

In recognition of this milestone event, Dow Texas Operations will be hosting a year-long celebration for its employees, retirees and community.

"This year not only marks the 65th anniversary of Dow mining magnesium from the sea, but it's also the 65th anniversary of manufacturing commercial products at our site," said Bob Walker, Vice President of Dow Texas Operations. "In that time, we've grown from a couple of plants to the largest integrated site in The Dow Chemical Company. Throughout this year, we're going to be taking the opportunity to celebrate and recognize the contributions and accomplishments of our employees and retirees and the support of our community. It's going to be a lot of fun."

Dow Texas Operations is still in the process of firming up dates, locations and other specifics of upcoming events. The site plans to communicate those details as they are finalized.

"We're planning some exciting activities for 2006," said Jan Huisman, Public Affairs Leader for Dow Texas Operations. "There will be an event for Dow families and the community. We're still working on exactly what those will entail, but we're very excited about the prospects."

A MAG-nificent Achievement

Magnesium became one of the most important metals in World War II after it was discovered in 1940 that the Germans were using is as a structural material to make their planes lighter and stronger. Lacking the badly-needed metal, the British approached Dow, then the chief magnesium supplier in the United States, who agreed to produce 8.4 million pounds. Six million pounds were to come from Dow's new plant in Freeport, Texas, which was going to mine the ocean for the metal - something man had never done before.

Dow's magnesium-from-seawater research was completed in 1938, but it would be almost three before the company could accomplish the task on a large scale. On Jan. 21, 1941, the first ingot of magnesium taken from the ocean was poured at Dow's Plant A. The achievement enabled Dow to become one of the biggest suppliers to the Allies in World War II.

Dow President Willard Dow would later describe the event as nothing short of remarkable.

"There is an epic quality involved in the peopling of a flat, narrow tongue of wasteland with strange shapes of structures and having them combine to take a ladle of gleaming metal out of a curling, white-capped ocean wave. Not even the old alchemists, in their wildest fantasies, ever got that far."

Building in Texas

The first plants started up at Dow Texas Operations were a power facility then a chlorine plant in late 1940. In 1941, the magnesium plant became the first at the site to make a product to be sold externally.

After the success of the magnesium facility, Dow began to invest more money into its Texas site. By the beginning of 1943 there were six plants at Plant A and just to the north in the village of Velasco the company had two plants at its Plant B location.

The U.S. Government asked Dow to step up its magnesium production after the Japanese attacked Pearl Harbor. A magnesium plant was then built at Plant B with the first ingot being poured in June 1942. One of the reasons Dow chose to build farther inland was for protection against the possibility of a U-Boat attack.

Dow's success in Texas paved the way for more industry to move to the Gulf Coast.

End of an Era

After 57 years of production, Dow exited the magnesium business in late 1998 due a number of factors, including competition in the global marketplace, high cost of operation and substantial damage to the plant after thunderstorms brought severe flooding. The site's last magnesium ingot was poured at Plant A on Nov. 21, 1998 at 5:45 AM. The Plant B magnesium facility was shut down in 1993.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

For Editorial Information:

David Winder
The Dow Chemical Company
(979) 238-3792