Sarnia, Ontario - September 13, 2005

Dow's Global Research and Development (R&D) function today announced changes to the way it will deliver service in Sarnia with fewer resources providing direct support for production, and drawing on larger Dow centres for other needs. As a result, the Sarnia-based Dow Automotive Reactive Polymers R&D Laboratory will relocate to Midland, Michigan by March, 2006. Approximately 45-50 R&D jobs will be affected.

Glen Mutscher, Sarnia Site leader, said the changes are being made to better manage the company's R&D capabilities and technologies. "Although we understand the constant need to evaluate our services and operations it is still difficult when the outcomes affect jobs at our site," he continued. "As in the past, we will work hard to identify redeployment opportunities for individuals for whom relocation is not possible. Dow remains committed to the local community however it has become increasingly difficult to show a positive business case for operating in Ontario. Clearly industry is important to Canada and especially to our local community but the current regulatory environment and recent contentious policy changes are making it less attractive to operate in this province than even a year ago."

"Decisions such as these are not easily made, nor are they easily accepted when they affect us so directly," says Ramesh Ramachandran, Dow Canada president. "As we manage through these changes, it is critical each of us maintains our focus on safety and environmental performance."

Dow employs approximately 360 people in Sarnia.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: 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 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

Dow Chemical Canada Inc., a subsidiary of The Dow Chemical Company, employs approximately 1,500 people in Canada. Headquartered in Calgary, Alberta, Dow Canada and its affiliates have manufacturing locations in Sarnia and Weston, Ontario; Fort Saskatchewan and Prentiss, Alberta; Elie, Manitoba; and Varennes, Quebec. For more information about Dow Canada, please visit our web site at www.dowcanada.com.

For Editorial Information:

Mimi Long
Dow Chemical Canada
(519) 339-3267 or 1 (800) 361-6650 (for area codes 313, 519, 586 and 810)