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Dow Board of Directors Declares 14 Percent Dividend Increase; Announces New $5 Billion Tranche to Share Repurchase Program, Bringing Total to $9.5 Billion

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The Dow Chemical Company (NYSE:DOW) announced today that its Board of Directors has declared a 14 percent increase in the Company’s dividend, from $0.37 per share to $0.42 per share in the fourth quarter. This brings the Company’s annualized dividend to $1.68 per share. The Company also announced a new $5 billion tranche to its share repurchase program, bringing the total program to $9.5 billion.

“Today’s announcement serves as a firm indication of our Board’s confidence in Dow’s fortified balance sheet position and future earnings potential, and further illustrates our commitment to consistently and increasingly rewarding shareholders,” said Andrew N. Liveris, Dow’s chairman and chief executive officer.

“The actions we are taking to mitigate external volatility, coupled with the ongoing implementation of Dow’s strategic growth catalysts and market-aligned business strategy, are delivering consistent results – evidenced by eight consecutive quarters of year-over-year adjusted EPS, EBITDA and EBITDA margin growth and significant increases in cash flow, with more upside to come.”

The dividend will be payable on January 30, 2015 to shareholders of record on December 31, 2014. This will mark the 413th consecutive cash dividend issued by the Company. Dow has paid its shareholders cash dividends every quarter since 1912. Since 2009, Dow’s dividend has increased by 19 percent on a compound basis.

Purchases under the share repurchase program may be made over time in open market or privately negotiated transactions. As previously announced, the Company has committed to complete its previous $4.5 billion share repurchase program by year-end. This new tranche brings Dow’s total target to $9.5 billion, with execution timed to proceeds from portfolio management actions and increases in operating cash flows.

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.

This Press Release contains information that may be or is privileged, confidential, proprietary or subject to copyright belonging to Dow or its affiliates. This information is intended solely for the use of the individual or entity to which it is addressed and any other use is unauthorized. If you are not the intended recipient of this information, this is notice that any retention, disclosure, distribution, copying or other use of this information is strictly prohibited and may be unlawful. Thank you.

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