Dow Ethanolamines Capacity To Increase by 100 Million Pounds

Midland, MI - October 30, 2006

The Dow Chemical Company, the global leader in ethanolamines, today announced a 100-million pound (45,000 metric ton) capacity expansion at Union Carbide’s ethanolamines facility in Hahnville, La. (St. Charles Operations). The additional capacity will bring total capacity at the plant to 340 million pounds (154,000 metric ton) per year.

“We are pleased to be making a strategic investment in ethanolamines in the world’s largest market,” says Kevin Dillan, global business director, Dow Amines. “This expansion will ensure that Dow has sufficient EOA capacity to meet both its own internal requirements for ethyleneamines, herbicides and gas treating products, as well as to satisfy the growth needs of our customers in North America and Latin America.”

The St. Charles facility is fully integrated from ethylene to ethanolamines and employs a monoethanolamine (MEA)-selective process. Therefore, it is well suited to service the growing demand for MEA in the merchant market, as well as the company’s ethyleneamines production process.

“This investment enables Dow to grow with our key customers,” says Pam Butcher, vice president of Marketing. “It is critical that we continue to invest in this Performance business and maintain our position as the leading global supplier of ethanolamines.”

This expansion will increase the company’s total EOA nameplate capacity on the US Gulf Coast to nearly 800 million pounds (358,000 metric tons) by mid 2007. Dow Ethanolamines are manufactured in the United States at Port Lavaca, Texas (Seadrift Operations) and Hahnville, La. (St. Charles Operations). Dow also participates in the Asia-Pacific region via the 165 million pounds (75,000 metric tons) ethanolamine unit at OPTIMAL Chemicals (Malaysia) Sdn. Bhd, a joint venture of Union Carbide and Petroliam Nasional Berhad (Petronas). When completed, Dow will have nearly 1 billion pounds (454,000 metric tons) of capacity to serve the growing needs of customers worldwide.

About The Dow Chemical Company

Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. Union Carbide Corporation is a wholly owned subsidiary of The Dow Chemical Company.

For further information, visit www.dowamines.com.

For Editorial Information:

Heather Hayward
The Dow Chemical Company
(989) 636-7611

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