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SP "Dow Izolan"

On November, 2, 2006 The Dow Chemical Company (NYSE:DOW), the biggest chemical company in the world and NPP Izolan, the leading Russian producer of polyurethane systems, announced that Dow Izolan, the Russian joint venture they formed, has commenced formal operations to provide customer-tailored polyurethane systems products to a growing customer base in Russia. Dow Izolan will undoubtedly become the preferred supplier for their customers, the partner providing their customers with a wide range of polyurethane systems and components and granting extra to already available advantages through successful products and services. The company office is based in Vladimir, a city 170 km north east of Moscow.

Polyurethane systems business is one of the fastest growing and successful businesses of The Dow Chemical Company known for its global leadership position in technology and raw materials back integration. Benefits arising from the combination of the above business with Izolan's strong local customer focus, product positioning and market experience are apparent. Thus, the objective of the Russian Dow Izolan joint venture formation the aspiration to become the leader in Russian's polyurethane systems marketplace, will be undoubtedly succeeded in the nearest future.

Over the past few years, Dow's polyurethane systems business has been growing consistently through acquisitions and joint ventures. Dow and Izolan have been working together since the 1990s on various commercial projects. The foundation for a strong and successful partnership has been established by blending the strengths of both companies. The new Dow Izolan joint venture possesses fine opportunities to serve the needs of customers, accelerate innovation. A detailed understanding of polyurethane chemistry, an in-depth knowledge of the polyurethane systems market and a proven track record of customer commitment are the main features of the companies. Benefits and strengths of Dow polyurethane systems business and Izolan perfectly complement each other, the common growth prospects of both companies are obvious. Not the least of the factors is that the two companies share such fundamentals and values as honesty, integrity, respect for people and a constant focus on environment protection and safety.

Great technical competence and experience of NPP Izolan functional leaders and experienced professionals assigned by Dow to the joint venture contribute to the successful development of the research work and the production of polyurethanes which also enables Dow Izolan to become the recognized leader in the Russian polyurethane systems market.

Dow Izolan owns innovative analytical and research laboratories, the scientific and technical centre located in Vladimir is the most equipped in Russia and the CIS and is able to conduct, within the shortest period of time, any developments and research work on a wide range of polyurethane systems as well as to perform tests of new systems with participation of customers.

Dow Izolan held on December 11, 2009 the official inauguration ceremony of its new and state-of-the-art polyurethane systems manufacturing facility built in Vladimir. From rigid foam systems used in construction panels and insulation to flexible foam systems used for arm rests, head rests and seating in automotive applications, the facility produces a broad range of polyurethane systems. The new plant helps Dow Izolan further enhance its offering and delivery terms to its customers in Russia and the CIS serving the automotive, consumer, footwear, furniture, appliance and construction markets.

Regional expansion in Russia

The goal of the Dow Izolan LLC is to serve the needs of customers in all regions of Russia. Currently the Dow Izolan LLC effects sales from proprietary warehouses in S-Petersburg, Novosibirsk, Ekaterinburg and Samara. The wide dealer network provides for the flexible and efficient deliveries of polyurethane systems practically in any point of Russia and CIS states.

In order to improve the service quality the Dow Izolan plans to open extra warehouses in various regions of Russia.

The network of the Dow Izolan LLC regional warehouses will enable to reduce terms of delivery of polyurethane systems to consumers, as well as provide for execution of shipments from a regional warehouse in the amount required for the customer by that time, thus enabling to reduce the warehouse stock of customers and expenses for transportation of small batches.

About Dow

Dow combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2012, Dow had annual sales of approximately $57 billion and employed approximately 54,000 people worldwide. The Company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe. References to Dow or the Company mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

About Dow in Russia and CIS

With almost 40 years of continued presence in Russia and CIS, and supported by its experience, size and global presence, Dow is passionately committed to further developing closer partnership with the local companies to keep growing the business, while significantly accelerating the growth of the chemical industry in the region and to jointly increasing its competitiveness in an international context. In 2012, Dow had annual sales of over 700 mln. USD and employed approximately 260 highly qualified specialists in Russia and CIS. In addition to its representation offices in Moscow and Sochi (Russia), Kiev (Ukraine) and Astana (Kazakhstan), the Company has two manufacturing facilities in Ramenskoye (Moscow Region) for the production of additives for paints and coatings, and in Vladimir where the Dow Izolan joint venture company inaugurated in 2009 its new, large and state-of-the-art manufacturing plant for the production of polyurethane systems.

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