Amerchol Corporation, a subsidiary of The Dow Chemical Company, today announced an agreement for the sale of several product lines of the Amerchol business, as well as a manufacturing plant in Vilvoorde, Belgium, to The Lubrizol Corporation. Product lines affected by this sale include Methyl Glucoside Derivatives, Lanolin and Lanolin Derivatives, AMEROXOL™ products, PROMULGEN™ products, Promyr and Propal products. Terms of transaction are not being released. Agreement is subject to regulatory approval.

There are 17 affected employees, all of whom are being offered the opportunity to transition to Lubrizol.

Amerchol will remain a Dow subsidiary, and Amerchol will continue to market strategic product lines — such as UCARE^TM polymers, BIOCARE^TM polymer derivatives, KYTAMER^TM derivatives, UCON^TM fluids, METHOCEL*  cellulose ethers, CELLOSIZE^TM hydroxyethyl cellulose and POLYOX^TM water soluble polymers — to the global personal care industry. This divestment will allow Amerchol to increase investment in its strategic product lines, strengthen its portfolio and focus on new growth opportunities. Amerchol’s strategy is to focus on highly functional water-soluble polymers and related technologies that provide unique properties for both hair care and skin care applications.

"Amerchol and Dow remain strongly committed to the personal care industry as a strategic, growth market," said Andrew Liveris, business group president for Performance Chemicals, The Dow Chemical Company. "Amerchol and Dow share more than 65 years of dedication to the personal care industry. Amerchol is a value-creating business and a strategic growth component in Dow’s Performance Chemicals portfolio."

Lubrizol will integrate these personal care products into Chemron Corporation, a Lubrizol subsidiary acquired in April 2002. The acquisition is a strong, strategic fit for Chemron, as it expands their presence in the global personal care market. The added technology platforms complement Chemron’s surfactants, esters, emulsifiers and micronized waxes, and enhance the company’s position in the hair care, hygiene and skin care markets.

Don Bogus, Lubrizol vice president, Fluid Technologies for Industry, said "These well-established platforms that we are acquiring, combined with our current personal care technology, substantially broaden our personal care ingredients line. We are looking forward to merging these Amerchol products and related global infrastructure with our current high-quality products, formulating capabilities and strong customer relationships."

To avoid any disruption to customers, the agreement includes a transition plan following the pending close of sale. All parties are committed to perform all interim activities safely, with no harm to employees, the community or the environment.

The Lubrizol Corporation (NYSE: LZ) is a global provider of specialty additives and fluid technologies. These high-performance technologies focus on chemicals, systems and services for transportation and industry. The company’s customers use its technology to enhance a wide variety of end-use products, including engine lubricants and fuel; gear oils and other vehicle-related fluids; hydraulic fluids and emission control systems; greases and industrial fluids; personal care products and industrial cleaners; paints, coatings and inks; and mining chemicals. Lubrizol was founded in 1928 and owns and operates 34 manufacturing plants in 15 countries. The Wickliffe, Ohio-based company has 50 sales and technical offices and more than 5,000 employees worldwide. Its three research centers are located in Wickliffe, Ohio; Hazelwood, England; and Kinuura, Japan. The company had revenues of $1.98 billion and earnings of $118.5 million in 2002. For more information, visit www.lubrizol.com.

Amerchol Corporation is a global manufacturer and marketer of performance chemicals for use in personal care applications, primarily conditioners, moisturizers and emollients. These products are sold to end-use producers as ingredients in consumer skin care and hair care products. Amerchol is known for its dedicated service to the industry and its functional product line. The company’s line consists of nearly 100 products, several of which are produced in three manufacturing facilities—Greensburg, LA; Xiaolan, China; and Vilvoorde, Belgium. They also market and sell many other specialty products for Dow in the personal care industry. For further information, visit www.amerchol.com.

Dow (NYSE: DOW) is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $28 billion, Dow serves customers in more than 170 countries and a wide range of markets that are vital to human progress, including 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 approximately 50,000 employees seek to balance economic, environmental and social responsibilities.