Dow India establishing R&D centre in Pune

* Dow India's Global R&D centre will be located in Chakan, Pune District

* Initial Investment of Rs. 400 Crores ($100 MM USD)

* R&D centre to employ 500 researchers by 2010

Mumbai, October 31, 2007: Today, Dow India signed an MOU with the Government of Maharashtra to set up a Global R&D centre at Chakan, Pune.

The Centre is expected to be operational by 2008 and will employ 500 researchers by 2010. Initial project related activities are underway on the 100 acre land allotted to the Company by MIDC and more than 125 researchers are already employed and providing their talented skills and capabilities, operating in a rented facility.

The memorandum of understanding (MOU) was signed today by Mr. V. K. Jairath, Principal Secretary (Industries), Government of Maharashtra and Mr. Vipul Shah, CEO,Dow Chemical International Pvt. Ltd in the presence of Hon. Chief Minister of Maharashtra, Mr. Vilasrao Deshmukh, Mr. Johnny Joseph, Chief Secretary, Government of Maharashtra, Mr.Michael Gambrell, Executive Vice President, The Dow Chemical Company, Dr. Deepak Parikh, Technical Director of Dow India's Global R&D Centre and other senior officials of the State Government.

Speaking at the occasion, Mr. Vilasrao Deshmukh, Chief Minister of Maharashtra said, "I am happy with this development and confident that Dow's track-record as a global leader will see setting up of a world-class R&D centre at Chakan putting this small village on the global R&D map." He added, "The Government is determined to consolidate Maharashtra's position as the No.1 industrialized state in the country. I am confident that this new R&D facility will accelerate the industrial growth of the region."

Mr. Michael Gambrell, Executive Vice President, The Dow Chemical Company said, "It is an honour for Dow India to partner with the progressive state of Maharashtra to set up this project which would benefit the region and our people. The Dow Chemical Company has had a presence in India through various subsidiaries over the last 50 years. We are committed to contribute to the rapid industrialization of the country."

He added, "In order to make that happen, we will leverage the State's strong and progressive policies to create globally competitive businesses. We appreciate the support that we have received from the Government of Maharashtra and look forward to working with the Department of Industries and MIDC for successfully completing the project."

Mr. Vipul Shah, CEO,Dow Chemical International Pvt. Ltd, said, "With total investment going beyond $100 Million, the Centre will have the capacity to bring a new product to market "� from concept to commercialization. The R&D Centre will be an integrated centre, serving multiple clients and geographies and will accelerate growth of the region through customer support, application development and problem solving in the areas of water, personal care, paints and coatings. Dow India is excited that the Centre will partner with government laboratories and educational institutions, funding research to generate intellectual property."

Speaking on the occasion, Mr.Johnny Joseph, Chief Secretary welcomed Dow India establishing Global R&D Centre in Pune. He said, "All the necessary support and assistance will be provided by the State Government to Dow for setting up this Global R&D Centre."

Speaking on the occasion, Mr. V. K. Jairath, Principal Secretary (Industries) said, "Through our association with a global leader like DOW for establishing this world class R&D centre, we take a step forward towards our goal of boosting the economic development in the state through rapid industrialization. We have constantly endeavoured to accelerate sustainable development through industrial growth across the state of Maharashtra."