Sarnia, ON - June 12, 2008

Dow Chemical Canada Inc. and TransAlta have signed a Memorandum of Understanding (MOU) for  the sale of Dow’s Sarnia site.  The MOU, is the basis for developing the terms of the potential sale of land, buildings  and other equipment at the Vidal Street site and does not include changes to employee  roles.

According to Don Fysh, Site Operations Director: “We  are still in the early stages of discussions with TransAlta.  As part of the conditions of the negotiations, Dow will continue to operate, as planned, our one remaining manufacturing plant on the site until April 2009. This potential sale of the site for industrial use is consistent with the site strategy we have shared with the community and will in turn benefit the community.”

Catherine Creber, Site Closure Leader emphasized: “This does not change the way we will manage our environmental obligations. In the event the sale does go through, Dow will work with TransAlta to continue to manage the areas of the site where long-term remedial action is required. In the interim, the closure process is continuing as planned.  Demolition work continues on schedule at the former manufacturing units. Creber noted: “Small adjustments may be made to the site demolition schedule to accommodate TransAlta needs and we will work through those details.”

About Dow Canada

Dow Chemical Canada Inc., a subsidiary of The Dow Chemical Company, employs approximately 1,200 people in Canada.  Headquartered in Calgary, Alberta, Dow Canada and its affiliates have manufacturing locations in: Sarnia and Toronto, Ontario; Fort Saskatchewan and Prentiss, Alberta; and Varennes, Quebec.   Dow Canada is proud to join the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) as the official supplier of Insulation Materials and Heat Transfer Fluids.  In addition, Dow Canada and VANOC, being mutually committed to the principles of sustainability, will work together on litter and end-of-life waste management programs to ensure the success of VANOC's 'Zero Waste' initiative.  For more information about Dow Canada, please visit our web site at www.dowcanada.com.

About Dow

For Editorial Information:

Mimi Long
The Dow Chemical Company
(519) 339-3196