Dow to raise prices on all STYROFOAM* EXTRUDED POLYSTYRENE FOAM products across Europe

Dow Chemical will raise prices for all STYROFOAM* EXTRUDED POLYSTYRENE products across Europe primarily due to raw material cost increases. The current pricing of STYROFOAM products does not allow for sufficient margins due to continued increases in raw materials. Based on this situation, Dow is announcing a price increase across the European region for all STYROFOAM products.

Effective October 1, 2004, Dow Europe will increase prices by a minimum of 10% for all STYROFOAM products. Further increases are anticipated if benzene prices remain at elevated levels.

“Pricing in 2004 has not compensated for the tremendous increase in raw material prices through out this year, if margin erosion continues future increases will be necessary” said Michael O'Connor, European Asset Manager for Building & Construction.

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.