Horgen, Switzerland - May 26, 2008

The current prices for polypropylene resins and INSPIRE™ Performance Polymers do not allow for acceptable margins for Dow in today’s market conditions. This is due to high raw material and energy prices and strong demand. Based on this situation, Dow Europe GmbH is announcing a price increase of 50 Euro per metric ton for all its polypropylene resins and INSPIRE Performance Polymers in Europe, India, Middle East and Africa regions. This price increase is effective June 1, 2008 or as contract terms allow.

“The cost of oil is already twice as high as it was this time last year and industry reports tell us that it will continue to rise in the near future”, said Isidro Quiroga, commercial vice president, Basic and Performance Plastics for Europe and India, Middle East and Africa. ”This is seriously affecting our cost position and eroding our margins. We need to reflect the reality of the current feedstock cost situation in the price of our product. It is imperative that we restore margins to prevent business from becoming unaffordable and to avoid having to make asset decisions at a time when we are experiencing strong demand.”

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Tania Cook
The Dow Chemical Company
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