Dow Announces Divestiture of its Powder Coatings Business to Akzo Nobel N.V.

MIDLAND, Mich., Nov. 12 /PRNewswire-FirstCall/ -- The Dow Chemical Company (NYSE: DOW) announced today that it has signed an agreement to sell its Powder Coatings Business to Akzo Nobel N.V. (AKZA: NA), a leading producer of paints and coatings, based in Amsterdam, The Netherlands. Terms of the transaction were not disclosed.

The transaction is expected to close within the second quarter of 2010, subject to customary closing conditions, including regulatory approvals.

Dow will use the proceeds from the transaction to reduce debt, consistent with Dow's de-leveraging plan.

"The sale of this business further accelerates Dow's de-leveraging plan, and will contribute to Dow's ability to achieve its financial targets ahead of schedule," said Andrew N. Liveris, Dow chairman and chief executive officer. "In addition, this divestiture is part of our ongoing process to sell non-core assets, and we are now on target to yield more than $3.5 billion of gross proceeds from these activities. We will continue our practice of active portfolio management to improve profitability and focus resources on higher growth, higher margin opportunities."

About Dow

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 approximately 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. In 2008, Dow had annual sales of $57.4 billion and employed approximately 46,000 people worldwide. The Company has 150 manufacturing sites in 35 countries and produces approximately 3,300 products. On April 1, 2009, Dow acquired Rohm and Haas Company, a global specialty materials company with sales of $10 billion in 2008, 98 manufacturing sites in 30 countries and approximately 15,000 employees 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 www.dow.com .

Note: This press release contains forward-looking statements that involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

SOURCE The Dow Chemical Company