Indianapolis, IN - February 13, 2007

Settlement has been reached with the U.S. Securities and Exchange Commission (SEC) resolving issues arising from allegations of payments to government officials in India by DE-NOCIL Crop Protection Limited, a third-tier joint venture subsidiary of Dow AgroSciences LLC, itself a second-tier wholly owned subsidiary of The Dow Chemical Company.

The payments were made without the authorization or knowledge of Dow or Dow AgroSciences employees in the U.S. Once Dow discovered the matter, the Company conducted a thorough investigation and voluntarily notified the SEC of its findings. The SEC alleged that the payments were not properly recorded in the Company’s books and records.

"Our Code of Business Conduct explicitly prohibits making improper payments to third parties and just as clearly requires that all payments be properly recorded in the Company's books and records,” said Jerome Peribere, President and CEO of Dow AgroSciences. “We also require compliance of our employees and intermediaries with the laws of all the countries in which we do business,” Peribere said. “We will pursue every violation that we uncover and respond with appropriate discipline."

Without admitting or denying the SEC’s allegations, Dow has consented to a cease and desist order and has agreed to pay a civil penalty in the amount of $325,000.

Between 1996 and 2001, DE-NOCIL employees and intermediaries are alleged to have arranged for a number of improper payments to government officials in India. During that period, Indian pesticide regulators demanded payments to advance pesticide registration applications filed by DE-NOCIL as the joint venture sought to introduce several crop protection products into the Indian market. These products were already being sold in many developed nations around the world, and were supported by extensive scientific research as to their efficacy, human health and environmental impacts.

A number of employees were discharged or otherwise disciplined for their involvement with these payments. To help ensure that this situation is not repeated, Dow has taken significant steps to secure compliance from its employees and intermediaries worldwide. The Company has strengthened financial controls and enhanced its global ethics and compliance programs, including requiring state-of-the-art training at all levels. The Company has improved its due diligence review of distributors and other intermediaries.

For additional information on these two companies, visit www.dowagro.com and www.dow.com.

References to "Dow" or the "Company" mean The Dow Chemical Company. 

For Editorial Information:

Garry Hamlin
Dow AgroSciences LLC
(317) 337-4799