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Dow to Close Plant

PRESS RELEASE

SARNIA, CANADA—The Dow Chemical Company has announced its decision to close its polystyrene (PS) production facility in Sarnia, Ontario, Canada, at the end of 2006. Shutting down the plant is necessary due to a number of factors, including the cost increase of doing business at Sarnia due to the closing of the low density polyethylene facility, the need for capital improvements to the aging PS plant to maintain Dow standards, and the long-term market conditions facing the PS industry.

The closure will begin early in the 4th quarter of 006 with one train and will be concluded by the end of the year. No PS production is expected in 2007. Dow's focus will be to generate as much capacity as possible from its other six North American polystyrene plants to service customer demand. See dow.com.


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