Shanghai, China - January 25, 2005

The Dow Chemical Company today announces the establishment of a new Dow Center in China, further underscoring its commitment to the country and positioning for long term growth.

The new Dow Center will initially be comprised of a state-of-the-art research and development (R&D) facility as well as a global information technology (IT) center, with plans to include other service and support facilities at a later stage.

Evaluation studies are underway and a decision will be taken before the end of March as to where the new Dow Center will be located. It is expected that the IT components of the new Dow Center will be set up within 12 months, and the entire center will be operational within 3 years. About 600 new jobs will be created by the end of 2007. Investment figures are not disclosed.

While making the announcement in Shanghai, Luciano Respini, Corporate Vice President of Dow, said, "The establishment of a Dow Center in China is a significant step forward to position Dow for our long term growth and sustainability in the country. China is a very important market for Dow and we'll continue to explore and assess options for investment and growth here."

Rich Myers, chair of Dow's R&D Council, said, "We are excited at the establishment of this new R&D facility in China. This center will provide Dow with greater access to knowledge, capability and the global marketplace. This center will bring us even closer to our customers and enable us to more effectively respond and deliver on their current and future business needs, both in China and the broader Asia Pacific region as well."

He added, "This new R&D Center in China will enable our growth through market-driven scientific and technological innovations, enhance current product platforms and create the product platforms of the future."

Dave Kepler, Corporate Vice President, Shared Services, and Chief Information Officer, said the new IT center in China will provide systems and work process support to Dow globally. "Establishing this kind of expertise in the region is an essential component of our growth strategy," said Kepler. "By combining Dow's project management strengths with IT suppliers like Accenture, and the talents of the local market, we will be in a position to deliver on the expectations of our businesses and customers before year end."

Dow has a significant presence in China with 10 manufacturing sites, business centers in 5 major cities and more than 1,200 employees. With revenues of more than US$ 1.6 billion in 2003, China is the third largest market for Dow behind the United States and Germany.

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 $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including 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 approximately 46,000 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. More information about Dow can be found at www.dow.com.

For Editorial Information:

Kay Yau
Dow Greater China Media Relations
(852) 2879-7316