Dow Announces Formation of Pfenex Inc.

Midland, MI and New York - December 07, 2009

The Dow Chemical Company (NYSE: DOW) today announced that it has formed a new independent company that will be known as Pfenex Inc.¹ through its Dow Venture Capital group. The new company, headquartered in San Diego, California, is based on human health applications of a Dow-developed technology called Pfenex Expression Technology™, a robust Pseudomonas fluorescens-based platform that uses high throughput, parallel processing methodologies for optimized protein production.

The action is consistent with Dow’s strategy of active portfolio management. Due to the long-term promise of the technology, Dow will hold a significant minority stake in Pfenex along with Signet Healthcare Partners, an experienced venture capital investor focused on the healthcare sector. Financial terms are not being disclosed

Pfenex is a biotechnology company specializing in strain engineering and protein production, helping to accelerate the development of new biopharmaceutical therapeutics and vaccines that address critical human health issues from infectious diseases to oncology. Using a high throughput parallel processing, robotically enabled approach based on the bacterium Pseudomonas fluorescens, the platform produces high quality protein for discovery, research, development and commercial use.

“We are very pleased to help establish Pfenex as an independent company that will accelerate further development of this valuable technology and help bring solutions to human health needs,” said Heinz Haller, Dow executive vice president, Performance Systems. “As we are actively managing Dow’s business portfolio, we also are maximizing value by applying the experience of Dow Venture Capital and its model for growing companies with novel and game-changing technologies that have the potential for significant equity value.”

Dow’s contribution to Pfenex includes Pfenex Expression Technology™ for human health applications, protein production assets, customer contracts and lists, process technology, trademarks, certain intellectual property, and approximately 20 experienced employees.

“We are extremely pleased to partner with Signet Healthcare Partners in forming this new company,” said Ken Van Heel, global director, Dow Venture Capital. “Dow has invested in this business over the past five years to the point that the team, technology and initial commercial success provide the basis for an independent company with the potential for significant growth in this new independent business model.”

“We are excited about Pfenex Expression Technology and the value of its protein expression system in surmounting barriers and shortening timelines in drug development,” said James Gale, managing director of Signet Healthcare Partners. “We are honored to be a partner of Dow in this transaction which we believe will enhance value for all Pfenex stakeholders.”

About Dow

About Dow Venture Capital

Dow Venture Capital invests in promising start-up companies in North America, Europe and Asia, supporting its portfolio with capital, technology, and a global network of potential development partners. Dow Venture Capital is active in sustaining these companies throughout their early critical years, from seed to later stage investment. Global locations are at The Dow Chemical Company headquarters in Midland, Michigan, U.S.A. as well as Dow locations in Zurich, Switzerland and Gotemba, Japan.

About Signet Healthcare Partners

Signet Healthcare partners was founded in 1998 and has a team that brings over 100 years of collective experience in the biopharmaceutical, medical device, private equity and investment banking businesses. Signet Healthcare has maintained its dedicated focus to diversified healthcare investing - primarily serving as lead investor to expansion stage companies engaged in specialty pharmaceuticals, medical devices and biopharmaceutical services.

Note: The forward-looking statements contained in this document involve risks and uncertainties that may affect Dow's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that Dow's expectations will be realized. Dow assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

¹ Pronounced fē-nĭks
™Trademark of Pfenex Inc.

For Editorial Information:

Bob Plishka
The Dow Chemical Company
+1 989 638 2288

Patrick Lucy
Pfenex Inc.
+ 1 978 887 4971

Al Hansen
Signet Healthcare Partners
+ 1 212 419 3920