Midland, MI - October 03, 2005

Effective November 1, 2005, Dow will increase its prices in the U.S. and Canada for the following polyurethane products:

• VORANATE™ toluene diisocyanate (TDI) by $0.25/pound.
   
• VORANOL™, VORALUX™ and SPECFLEX™ polyether and copolymer polyols by $0.10/pound.
   
• Methylene diphenyl diisocyanate (MDI) by $0.07/pound.

"We continue to be faced with persistently high and volatile energy and raw material costs, including crude oil and natural gas, which are significantly impacting our cost of production. This already challenging environment has been further exacerbated by the recent hurricanes, which have caused significant logistical issues resulting from damage to the transportation infrastructure, as well as impacted raw material and natural gas availability," stated Pat Dawson, Dow business vice president, Polyurethanes and Thermoset Systems. "The full impact of these events is still unfolding and their collateral effect continues to be assessed."

"Given the high cost of gasoline, the prices of key precursor materials, such as propylene and toluene, are dramatically rising as their alternative value as a fuel additive increases," continued Dawson. "In the face of these severe industry pressures, our polyurethanes business has been taking steps to reduce operating expenses, increase productivity and improve organizational efficiencies. Despite these efforts, we are not able to continue to absorb these unprecedented cost increases and must raise our prices to help offset these rising costs." He added that high global demand and tight supply conditions remain for MDI and polyols, and that current TDI supply/demand fundamentals are expected to change due to the industry consolidation underway.

Dow is the world's largest producer of polyether polyols, a leading producer of quality aromatic isocyanates (such as MDI and TDI) and a major supplier of propylene oxide, an essential component of polyether polyols. Dow's polyurethanes products are used in rigid foams, flexible foams, adhesives, sealants, coatings, elastomers and agrifibers, as well as many other applications.

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.

For more information, visit www.dowpolyurethanes.com.

For Editorial Information:

Dan Taylor
The Dow Chemical Company
(989) 636-5005