DOW VAM Responds to Rising Energy and Raw Material Costs

Midland, MI - July 16, 2008

The Dow Chemical Company (“Dow”) announced that, effective August 1, 2008, or as individual contract terms allow, it will raise the price of Vinyl Acetate Monomer (VAM) in all regions of the world, in response to the current climate of unprecedented energy and raw material costs.

VAM off-schedule prices will increase by US$ 0.05 per pound in North America, by US$ 110 per metric ton in Latin America and Asia and by Euro 50 per metric ton in Europe.

This increase is in addition to the increases announced for June and July 2008. Therefore, the cumulative increase of the VAM off-schedule prices will be US$ 0.11 per pound in North America, US$ 240 per metric ton in Latin America and Asia, and Euro 130 per metric ton in Europe.

VAM is a key raw material used in the manufacture of emulsion polymers, resins and other intermediates for paints, adhesives, coatings, textiles, wire and cable, laminated safety glass, packaging, automotive parts and acrylic fibers.

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For Editorial Information:

Amy Ahlich
The Dow Chemical Company
989-636-3587