Midland, MI - May 01, 2008

The Dow Chemical Company (NYSE:DOW) finalised the sale today of its Dowpharma Small Molecules business associated with its United Kingdom sites in Mirfield and Cambridge to Dr. Reddy’s Laboratories (EU) Limited, a subsidiary of  Dr. Reddy’s Laboratories, Ltd. (NYSE:RDY) of Hyderabad, India. Terms of the agreement are not being disclosed.

The sale includes associated product and process technology, intellectual property, and trademarks as well as the transfer of the Mirfield and Cambridge facilities.

Employees directly related to the business located at the Cambridge and Mirfield sites will become part of Dr Reddy’s. 

The  Dowpharma sites and businesses in the United States, as well as the  Pfenex Expression Technology™ remain with Dow and are not part of the agreement.  However, Dr. Reddy’s has a non-exlcusive license to the Pfenex Expression Technology to facilitate existing biocatalysis development.

“The finalisation of this sale confirms our emphasis on portfolio management: focusing our resources on businesses that are better positioned for long term sustainability,” said Peter H. Davies, business group president, Designed Polymers and Latex.  “Dr Reddy’s core operations and capabilities are strongly aligned with the specialty chiral and biocatalysis custom manufacturing business, so it is well equipped to help these businesses reach their full potential. Our priority now is working closely with Dr Reddy’s to continue to ensure a seamless transition for our customers.”

About Dow

About Dr. Reddy’s

Dr. Reddy’s Laboratories was established in 1984 in Hyderabad, India, and is a global pharmaceutical company with proven research capabilities. Dr. Reddy’s conducts research in the areas of diabetes, obesity, cardiovascular diseases, anti-infectives and inflammation. The Indian based company produces finished dosage forms, active pharmaceutical ingredients and biotechnology products which are marketed globally, with focus on India, US, Europe and Russia. (www.drreddys.com)

For Editorial Information:

Mike Altmann
The Dow Chemical Company
+1 732 563 5088

Sue Breach
The Dow Chemical Company
+44 203 139 4177

Mythili Mamidanna
Dr. Reddy’s Laboratories, Ltd.
+91-40-66511620