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Dow Provides Updates on Planned Divestments Progress and Outlines Additional Portfolio Actions

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The Dow Chemical Company (NYSE:DOW) today announced several updates regarding divestiture and portfolio management actions – demonstrating the Company’s commitment to previously established targets and its ongoing focus on shareholder value creation.

Progress against Divestiture Targets

In line with the Company’s plans to divest $4.5 billion to $6 billion of non-strategic businesses and assets by 2015, Dow is now confirming that its Angus Chemical Company, Sodium Borohydride and AgroFresh businesses are being actively marketed for divestment. The Company expects to complete signing of these transactions by year-end 2014, and close in early 2015. Collectively, these businesses are expected to yield proceeds greater than $2 billion.

In addition, Dow announced it has now completed the sale of a substantial portion of its North America rail car fleet, moving to a lease structure going forward – an action that generated nearly $450 million in cash proceeds and reinforced the Company’s commitment to identify alternative uses for capital.

Dow also continues to make solid progress on the planned carve-out of its U.S. Gulf Coast Chlor-Alkali/Chlor-Vinyl, Global Chlorinated Organics and Epoxy businesses, which collectively are expected to generate EBITDA in excess of $500 million annually. Dow is now actively working to stand up the carve-out within a separate structure, with more details forthcoming. The carve-out is receiving strong interest from the market and firm indications of interest are expected before year end, with signed agreements expected in early 2Q15.

In all cases, transaction options will be examined to ensure Dow generates maximum value for the businesses and its shareholders.

To date Dow’s completed divestiture actions total $1.3 billion, and the expected proceeds of the entire program will now be at the higher end of the Company’s $4.5 billion to $6 billion range.

Streamlining Dow’s Joint Ventures

As announced during Dow’s 2Q 2014 earnings call, the Company continues to assess opportunities to enhance the value created through its major joint ventures by simplifying the structure and focus of these partnerships and aligning them to Dow’s strategy.

The first such step is with Univation. Dow has signed a definitive agreement with ExxonMobil Chemical Company regarding an ownership restructure of Univation Technologies, LLC. Currently a 50/50 joint venture, Univation Technologies is the licensor of UNIPOLTM PE Process Technology and the leader in the development, manufacture and sales of PE catalysts for the UNIPOLTM PE Process – highly differentiated market-aligned solutions. This transaction will result in Univation Technologies becoming a wholly-owned subsidiary of Dow. A valuable, high-margin business, Univation Technologies will enhance Dow’s industry-leading Performance Plastics franchise – further strengthening its leadership position in this high-demand technology.

Further, the Company is working rigorously to rationalize its position in joint ventures that – while valuable – no longer align with Dow’s strategy. More details are forthcoming by year-end 2014.

Commenting on today’s announcements, Dow’s Chairman and Chief Executive Officer Andrew N. Liveris said, “Dow’s strategy of being low cost, integrated in key products and adding value through technology in its markets, all the while applying a best owner mindset to our portfolio, is on display with these updates and announcements.”

“Through the actions we have taken and the plans in progress, we will have divested more than $14 billion in non-strategic businesses since 2009, while at the same time adding $18 billion in revenue via acquisitions and organically through targeted R&D, thus proving our complete focus on further accelerating Dow’s continued commitment to going deeper into attractive end-markets within its integrated value chains and products – all while enhancing return on capital and driving TSR even higher,” Liveris said. “In fact, our consistent execution against the plans we have firmly set has resulted in the Company’s achievement of TSR increases above the S&P Chemicals and S&P 500 on a 1-, 3-, and 5-year basis – with more upside on the way.”

About Dow

Dow (NYSE:DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world’s most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow’s integrated, market-driven, 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 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agriculture. In 2013, Dow had annual sales of more than $57 billion and employed approximately 53,000 people worldwide. The Company’s more than 6,000 products are manufactured at 201 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. More information about Dow can be found at www.dow.com.

(R)TM Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

Note: The forward-looking statements contained in this document 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.

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