Dow Publishes Its 2007 Report to Stockholders

MIDLAND, Mich., March 28 /PRNewswire-FirstCall/ -- In his annual letter to shareholders, Andrew Liveris, chief executive officer and chairman of The Dow Chemical Company , summed up 2007 as a significant year for Dow ... a year in which the organization demonstrated it has the right strategy, right people and right products to succeed in today's marketplace.

"In a year of increasing uncertainty in the U.S. economy and continued increases in the costs of feedstocks and energy, our Company posted solid financial results. Perhaps more important, however, we took meaningful strides to establish Dow as an earnings-growth company," said Liveris.

Liveris went on to highlight some of the most significant actions taken by Dow during 2007 ... events and activities that have been instrumental in moving the Company ever-closer toward its goal.

"We completed several bolt-on acquisitions to fill gaps in our product and geographic offerings. We made a number of joint venture announcements, including the industry-defining joint venture with Petrochemical Industries Company of Kuwait to form a new world-leading petrochemicals enterprise with advantaged feedstocks and unparalleled technology. And we maintained our commitment to divest or shut down non-competitive, unproductive or non- strategic assets ... as part the disciplined approach to portfolio management being implemented by this management team," he said.

"As a result of our strategic actions and our discipline, we are now positioned to move away from the ethylene-driven troughs that have plagued our earnings profile for so long, transitioning to an earnings-growth company."

Liveris' letter was issued today as part of Dow's 2007 10-K and Stockholder Summary, which has been mailed to all Dow stockholders along with the 2007 Corporate Report and Dow's 2008 Proxy Statement. Copies of all three documents are available on Dow's website at http://www.dowannualreport.com/

Looking ahead, Liveris underscored his commitment to ensure that Dow continues to implement its growth strategy with the same level of disciplined enthusiasm and vigor seen during 2007. And he outlined three key areas of focus for 2008.

"First, you can expect us to continue to run a tight ship. This is still a no excuses company, and we will manage our day-to-day businesses to deliver solid financial results. Dow people throughout the world have proven capable of delivering what it takes to succeed.

"Second, we will close on our joint venture with PIC and move forward with the implementation of our asset light strategy.

"Third, we will continue transforming our earnings profile. I am committed that by the end of 2008, we will have taken another major step in that regard. My commitment to our stockholders is that at the next industry trough, The Dow Chemical Company will have an earnings profile that is well north of $3 per share and we will provide steady earnings growth beyond that point," concluded Liveris.

About Dow

With annual sales of $54 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the "Human Element" to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. 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 http://www.dow.com/