Dow and Chevron Phillips Chemical Announce Plans to Form Styrenics Joint Venture in the Americas

MIDLAND, Mich., and THE WOODLANDS, Texas, April 10

Apr 10, 2007, 01:00 ET from Dow Chemical Company

/PRNewswire-FirstCall/ -- The Dow Chemical Company (NYSE:   Dow) and Chevron
 Phillips Chemical Company LP (Chevron Phillips Chemical) have signed a
 non-binding Memorandum of Understanding relating to the formation of a
 joint venture involving assets from their polystyrene and styrene monomer
 businesses in the Americas. The new venture is subject to customary
 regulatory review, due diligence, completion of definitive agreements, and
 corporate and other approvals. Upon the necessary approvals, the parties
 would expect the transaction to close in the second half of 2007.
     "Today's announcement marks another key milestone in Dow's strategic
 agenda and underscores our commitment to change the Company's long-term
 earnings profile," said Andrew Liveris, Dow chairman and chief executive
 officer. "This joint venture is what our Asset Light strategy is all about:
 joining forces with a complementary partner who brings value to Dow through
 its excellent feedstock position and with whom we can build a stronger
 regional presence, reduce costs, enhance innovation and deliver a superior
 service to our customers."
     The 50-50 joint venture is expected to establish the competitive model
 for an integrated producer of polystyrene in the Americas.
     "This joint venture is an important step for our company in recognizing
 the changing competitive landscape for styrenics in the Americas," said Ray
 Wilcox, president and chief executive officer of Chevron Phillips Chemical.
 "This is a very competitive business and we look forward to achieving the
 synergies of this venture so as to expand our opportunities in the Americas
 and more efficiently meet customer demand."
     The potential joint venture is expected to realize significant
 manufacturing, commercial and feedstock synergies between Dow and Chevron
 Phillips Chemical.
     "We complement each other well and together we're creating a
 sustainable company in the Americas," said Mike Gambrell, Dow Executive
 Vice President for Basic Plastics and Chemicals. "Both companies bring a
 wealth of commercial and manufacturing experience to the venture."
     "Partnering in this way enables both Chevron Phillips Chemical and Dow
 to more efficiently build upon our core competencies," said Mike Parker,
 senior vice president of aromatics and styrenics for Chevron Phillips
 Chemical. "We also believe it improves our customer coverage and enhances
 logistics to better serve them."
     Subject to due diligence, the parties intend to contribute the
 following assets to the venture. Dow intends to contribute: a styrene
 monomer plant (Camacari, Brazil) and six polystyrene plants (Gales Ferry,
 Connecticut; Ironton, Ohio; Joliet, Illinois; Torrance, California;
 Cartagena, Colombia; and Guaruja, Brazil). Chevron Phillips Chemical
 intends to contribute a styrene monomer plant (St. James, Louisiana) and a
 polystyrene plant (Marietta, Ohio).
     About Dow
     Dow is a diversified chemical company that harnesses the power of
 innovation, science and technology to constantly improve what is essential
 to human progress. The Company offers a broad range of products and
 services to customers in more than 175 countries, helping them to provide
 everything from fresh water, food and pharmaceuticals to paints, packaging
 and personal care products. Built on a commitment to its principles of
 sustainability, Dow has annual sales of $49 billion and employs 43,000
 people worldwide. 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
     About Chevron Phillips Chemical
     With approximately $7 billion in assets and over $12 billion in
 revenues in 2006, Chevron Phillips Chemical Company LLC with its affiliates
 is one of the world's top producers of olefins and polyolefins and a
 leading supplier of aromatics, alpha olefins, styrenics, specialty
 chemicals, piping and proprietary plastics. The company produces chemicals
 that are essential to manufacturing over 70,000 consumer and industrial
 products. Headquartered in The Woodlands, Texas, the company has more than
 5,000 employees worldwide. For more information about Chevron Phillips
 Chemical, go to
     Some of the matters discussed in this news release are forward-looking
 statements that are subject to risks and uncertainties. Actual results
 could differ materially from those described, as a result of factors
 including, but not limited to, future economic conditions, industry
 production capacity and operating rates, the supply/demand balance for the
 products discussed in this release, pricing pressures, increases in raw
 material and/or energy costs, changes in governmental regulations,
 political risks, war, civil unrest, and other factors. These statements are
 not guarantees of future performance and actual outcomes and results may
 differ, perhaps materially, from those described herein.

SOURCE Dow Chemical Company