Dow Shares Experiences at UNIDO Chemical Leasing Event

First pilot results show significant potential for emissions reductions

Düsseldorf, Germany – February 8, 2006

A new service-based business model and the benefits of chemical leasing were among the topics addressed during a special session at the International Conference on Chemicals Management, held in Dubai, 6 February, 2006. Government and industry representatives, including The Dow Chemical Company (Dow), participated in a discussion of the global application of chemical leasing and its inclusion in the Strategic Approach to International Chemicals Management (SAICM). Hans-Norbert Adams, regulatory opportunities research & development leader for Dow in Europe, took part in the session, "Chemical Leasing and Cleaner Production: a global win-win strategy for risk management and SAICM." The panel event was organized by the United Nations Industrial Development Organization (UNIDO), which supports the chemical leasing concept at the global level.

Adams shared the experience Dow has gained from its role in a chemical product service pilot program for metal cleaning applications in the automotive industry in Austria. Dow participates in this pilot through its subsidiary, SAFECHEM Europe GmbH, a solutions provider for the industrial cleaning industry. Dow and SAFECHEM view chemical leasing as a service-oriented business model that demands a paradigm shift from a pure material focus towards a more performance focused approach. In such models, the revenue is increasingly derived from service and the consumption of chemicals becomes a cost rather than a revenue factor for the chemical supplier as its role shifts to that of solutions provider.

Adams highlighted that the implementation of such models is driven by an alignment of incentives: the chemicals supplier (now in the role of a solutions provider) and the buyer share a common economic interest in reducing the use of chemicals and in decreasing the overall life-cycle costs, while observing a set of ecological and technical quality criteria. According to Adams, such chemical product service business models can easily incorporate comprehensive risk management, waste management and recycling, thereby reducing the impact on the environment.

"We found that the close cooperation between SAFECHEM as chemical solution supplier and the manufacturer responsible for leasing the cleaning equipment has significantly enhanced the optimization of performance efficiency," commented Adams. "The initial results from the eight-month chemical leasing pilot in Austria show that solvent emissions have been cut by more than 60 percent."

Dow believes that large and small-to-medium size companies (SMEs) can benefit from such chemical product service business models which can deliver immediate and long-lasting value through cost savings, service solutions and environmental advantages.

Adams concluded that these encouraging results demonstrate that chemical product service models can lead to win-win situations with great benefits for the chemicals supplier, the customer and the environment.

About SAFECHEM
SAFECHEM Europe GmbH, a subsidiary of The Dow Chemical Company, was founded in 1992 as a solutions provider for the industrial cleaning industry. SAFECHEM enables the safe and sustainable use of chlorinated solvents in a variety of high-quality cleaning applications and supports users in their efforts to meet the principles of Responsible Care^® and Product Stewardship by offering active risk management for the use of solvents. Combining chemical product knowledge with in-depth application expertise, SAFECHEM has formed a Service Alliance that includes qualified distributors, waste managers and leading European machine manufacturers to offer innovative solutions including the closed loop SAFE-TAINER™ System and associated services. With offices in Düsseldorf and Paris, SAFECHEM serves more than 4.500 clients across Europe.

For more information visit www.safechem-europe.com

About Dow

®™^* Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow
® Responsible Care is a service mark of The American Chemistry Council in the United States

For Editorial Information:

Csilla Magyar
Dow Europe GmbH
+41 44 728 2531