Letter from the New Site Leader — Ernie Kremling

Dear Friends,

Last year was an exciting year of growth and change for Houston Operations. In July, I was named the site leader taking over the role from Wayne Turner who retired after many years of successful accomplishments at the site. From the moment I arrived I have been impressed with the dedication and spirit of the employees that work each day to operate the site safely and successfully.

We continue to work toward the Vision of Zero in our safety processes. Our goal is to be the premier site leading the way in safety, growth and profitability. We are growing and expanding at Houston Operations. In 2006, we began construction on a new STYROFOAM™ plant. This plant will provide Dow with capacity to transition its entire North American STYROFOAM manufacturing asset base to next generation insulating formulations, consistent with federal requirements anticipated to take effect in 2010. This plant will create 30 new full time positions. We will continue to look for additional opportunities to bring new business to La Porte.

Our site once again showed strong support in the community. Our employees volunteer and support a number of community programs, including the United Way, Junior Achievement and support for our local schools and colleges.

We hope you will review the Public Report and see our accomplishments and progress in 2006.

Ernie Kremling, II
Site Leader
Houston Operations