Midland, MI - August 31, 2006

The Dow Chemical Company (NYSE: DOW) has reached an agreement to purchase the Plaquemine Cogeneration Facility in Plaquemine, Louisiana from a subsidiary of American Electric Power Company (NYSE: AEP).

The Plaquemine Cogeneration Facility, which consists of four 170-megawatt gas-fired combustion turbine generators and a 200-megawatt steam turbine, has a capacity of 880 MW of power and 5 MM pounds per hour of steam. Dow has leased and operated this facility since it began commercial operations on March 18, 2004.

“Purchasing this world-scale facility will enable Dow to generate power and steam via more energy efficient assets, while decreasing our use of older, less efficient equipment over time,” said John Dearborn, global vice president for energy. “ With domestic natural gas at high and globally non-competitive prices, purchasing this state-of-the-art cogeneration facility will help to lower Dow’s energy costs, while making our Plaquemine, Louisiana manufacturing site more competitive. This purchase will also allow Dow to make additional opportunistic sales of excess power.”

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. More information about Dow can be found at www.dow.com and www.dowlouisiana.com.

For Editorial Information:

Chris Huntley
The Dow Chemical Company
+1 989 636 2876