Dow Declares Force Majeure for Vinyl Acetate Monomer

Midland, MI - May 18, 2005

Dow announced today that it has declared force majeure due to circumstances beyond its reasonable control at the Texas City, TX vinyl acetate monomer (VAM) plant, which is owned by Union Carbide Corporation, a wholly owned subsidiary of Dow. 

The Texas City plant was hit by a storm on May 8, 2005, resulting in significant damage to critical equipment. This caused an involuntary and continued shutdown of the VAM plant at the site.

While repairs to the equipment have commenced, this event occurred during a period of low inventory levels at Dow and overall tight supply. Dow is projecting a restart of VAM production at the Texas City plant by the end of May, 2005. 

The Company will continue its force majeure status and allocate product — effective immediately and at least through the end of June — until the critical equipment is repaired, the plant is restarted and operating safely, and inventories are brought back to a satisfactory level.

About The Dow Chemical Company
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 Editorial Information:

Amy Ahlich
The Dow Chemical Company
(989) 636-3587

Josiah McClellan
Gibbs & Soell, Inc.
(212) 697-2600