"

3 Months Ended 9 Months Ended
September 30 September 30
(In millions, except for
per share amounts) 2005 2004 2005 2004
Net Sales $11,261 $10,072 $34,390 $29,225
Net Income $ 801 $ 617 $ 3,419 $ 1,771
Earnings per Common
Share $ 0.9
billion, an increase of 22 percent compared with the same period in 2004, with
volume up 5 percent and price up 17 percent.2 948. 30, Sept. Although companies located in Western Europe can continue to
service customers in Eastern Europe, the cost of transporting products will
make them less competitive than regional suppliers. Though many manufacturers have now
moved to environmentally friendly blowing agents, this has adversely affected
the process economics as the alternatives come at a high cost.
This new research from Frost + Sullivan covers all the major types of
polymer foam including polyurethanes, expandable polystyrene, poly
vinylchloride (PVC), polyolefins and phenolic foams.
European Markets for Polymer Foams (B514-39)
Background
Frost + Sullivan, a global growth consulting company, has been partnering
with clients to support the development of innovative strategies for more
than 40 years.

Media Contacts:
Europe:
Katja Feick
Corporate Communications
P: +44-(0)-20-7915-7856
F: +44-(0)-20-7730-3343
E: katja.3
million or $0.9 million related to the Company 's decision to exit its
wallcovering distribution joint venture.
Interest expense increased to $5.1 million versus $91. Excluding these
charges, segment operating profit was $1. Last year 's inventory increased in the
Company's Columbus, Mississippi plant during union contract negotiations .

Building Products - Net sales of the Company's single-ply commercial
roofing products were $29.0 $4.4 $. These statements are intended to qualify for the protections
afforded forward-looking statements under the Private Securities Litigation
Reform Act of 1995.6 354.00 par value; 15 million
shares authorized; none outstanding - -
Common stock - $0.3 3.

polystyrene foam

Dow Reports Third Quarter 2005 Results Strong Sales and Earnings Growth in Face of Significant Challenges

65
per share reported a year ago and the Company 's 10th consecutive
quarter of year-over-year earnings growth.82 $ 0. Gulf Coast operations were disrupted by two severe
hurricanes," said Geoffery E.
"Looking ahead, global economic growth is set to continue, spurring higher
demand for chemicals and plastics in the face of tightening supply/demand
balances.55 $1.9 962. The employee-related restructuring charges included
severance of $225 million and curtailment costs of $71 million
associated with Dow's defined benefit plans, and were the result
of decisions management made in the second quarter relative to
employment levels as the Company restructured its business
organization and finalized plans for additional plant shutdowns
and divestitures .5 percent
interest in EQUATE to National Bank of Kuwait for $104 million. 30, Sept . 30, 2005 Sept.com

List of Key Industry Participants: Alfa Systems Ltd. Included in
the second quarter of 2005 were restructuring and severance charges of $1.
Net sales increased 10. Contributing to the sales increase in the second quarter of 2005
were pricing improvements of $31. The Company's total debt at the end of the
second quarter of 2005 was $197. In May 2005, the Company extended the maturity of its
revolving bank line to November 2009, while reducing borrowing spreads and
increasing flexibility.
Segment operating profit was $0.omnova. Webcast attendees will be in a listen-only mode.

Three Months Ended Six Months Ended
May 31, May 31,
Dollars in millions 2005 2004 2005 2004

Performance Chemicals $118.8 141.0 104.

syntactic foams

,

Third Quarter of 2005 Highlights

-- Sales for the three months ended September 30 set a new third quarter
record of $11.S. Sales improved across all
businesses and in all geographic areas, leading to particularly strong
earnings growth in Polyurethanes, Engineering Plastics and Epoxy Products and
Intermediates . A reconciliation of EBIT to "Net Income Available for Common
Stockholders" is provided following the Operating Segments and
Geographic Areas table. 30, Sept. Except as otherwise
indicated by the context, the terms "Company" and "Dow" as used
herein mean The Dow Chemical Company and its consolidated
subsidiaries. 30, Sept. 30, 2005
Percentage change from prior year Volume Price Total Volume Price Total
Operating segments
Performance Plastics 5% 17% 22% 1% 22% 23%
Performance Chemicals (4)% 17% 13% (2)% 21% 19%
Agricultural Sciences (8)% 2% (6)% (3)% 4% 1%
Plastics 2% 9% 11% (1)% 22% 21%
Chemicals (12)% 9% (3)% (15)% 19% 4%
Hydrocarbons and Energy 7% 12% 19% 3% 25% 28%
Total - 12% 12% (2)% 20% 18%
Geographic areas
United States (5)% 14% 9% (2)% 19% 17%
Europe 8% 9% 17% 1% 21% 22%
Rest of World (4)% 13% 9% (7)% 20% 13%
Total - 12% 12% (2)% 20% 18%

"They could do this either by
strengthening their presence and market share in existing applications not
affected by this trend, or by looking out for emerging applications in niche
areas such as those in the sports and leisure and the high-performance
aerospace segments.
However, companies can only create a better impression of foams among the
general public by emphasising their benefits .p.09 per share versus net income of $0.1
million.0% of net sales, in the second quarter of 2004 due to
lower employee headcount, improved cost control, and the elimination of
expenses from the wallcovering distribution joint venture.1 million for the same period a year ago, due primarily to
higher average borrowing rates.7 million for the second quarter of 2004.1) - (. is a technology-based company with 2004 sales of
$746 million and a current workforce of 1,850 employees worldwide. OMNOVA is
an innovator of emulsion polymers, specialty chemicals, decorative and
functional surfaces, and single-ply roofing systems for a variety of
commercial, industrial and residential end uses.8 .0
Accrued interest 9.4 million
shares issued at May 31, 2005 and November 30, 2004,
respectively; 40.

nbr flotation

65 $ 3. Merszei, Dow's executive vice president and
chief financial officer. Third quarter EBIT(2) for the Performance
Plastics segment was $580 million, almost two and a half times the $238
million reported in the same quarter of 2004.
Price was up 9 percent year-over-year, all but offsetting the surge in
feedstock and energy costs.
"This was a significantly challenging quarter for Dow, but one in which we
were able to report healthy earnings growth, further strengthening our balance
sheet and taking us past Dow's previous record annual earnings, with one full
quarter to spare," said Merszei. With annual sales of $40 billion, Dow serves customers in 175
countries and a wide range of markets that are vital to human progress,
including food, transportation, health and medicine, personal and home care ,
and building and construction, among others.05 per share, related to the
sale of a 2. 30, Sept .005 $1. 30, Sept., Jackon AS, Kaneka Belgium
N.,
Sunpor Kunstoffe, Thermal Ceramics UK Ltd .01 per diluted share for the second quarter of 2004.8 million in Decorative Products and Building Products
businesses and $3. Cost of goods sold for the second
quarter of 2005 increased $22.4 million for the second quarter of 2005
as compared to $5.8% volume
improvements. Excluding
MNA, Decorative Products' sales were $62.3) (5.6 $.5
Postretirement benefits other than pensions 47.

polyolefin winboss

The Chemicals segment reported EBIT for the third quarter of $168
million, 42 percent lower than the same period last year.

About Dow
Dow is a leader in science and technology , providing innovative chemical,
plastic and agricultural products and services to many essential consumer
markets.5 percent interest in the EQUATE joint venture, recorded in the
first quarter of 2005. This was reflected in "Provision
for income taxes. Both of these items were recorded in
the second quarter of 2005.08)
Recognition of
liability related
to Cargill Dow
loan guarantee - (148) - (93) - (0. 30, Sept.
Currently , the market is passing through a difficult phase and has to
overcome numerous challenges that stand in the way of continued growth.com

Australia:
Sharmin Jassal
Corporate Communications
P: +61-2-8247-8900
F: +61-2-9252-8066
E: sjassal@frost.,
Degussa, Dow, Dynea , Eurofoam, EVC (European Vinyl Corporation), Fagerdala
World Foams, Fers Resins, Gabriel Technologie , Greiner Perfoam GmbH, Huntsman
Polyurethanes, Hydro Polymers, Hyperlast Ltd.9% to $118. As part of a
contingency-related build, finished goods inventory at Mogadore increased $2.

Decorative Products - Net sales were $62.0 million for the second quarter of
2005 versus $66.14)
Net income (loss) per diluted share
for excluded items (net of tax) .9%

Management reviews the information below in assessing the performance of
the business segments and in making decisions regarding the allocation of
resources to the business segments.4 $4.5) (.4 $3.1 404.4 $432.

styrofoam crosslinked

3 billion for
the third quarter of 2005, a 12 percent increase compared with the same period
of 2004.
Plastics sales climbed to $2.3 billion.
Results for ethylene glycol were impacted by an outage at EQUATE early in the
quarter - and by lower selling prices compared with the very high levels of a
year ago.10)
Total $ 39 $20 $139 $17 $ 0.83 $0.

Note D: In the second quarter of 2005, the Company finalized its plan
for the repatriation of foreign earnings subject to the
requirements of the American Jobs Creation Act of 2004, resulting
in a credit to the "Provision for income taxes" of $113 million. 30, Sept.com) Research Analyst Hariharan Ramasubramanian.
"This is likely to remain a significant challenge for suppliers to the
polymer foams market in the short to medium term. KG,
Vitafoam, Zotefoams, Plc

OMNOVA Solutions Reports Second Quarter 2005 Earnings per Share of $0.09

11 per share

FAIRLAWN, Ohio, OMNOVA Solutions Inc.
"While significant progress was made, our margins remain below historical
levels and clearly are not where we ultimately expect them to be," said
McMullen.
Segment operating profit totaled $0 .4 million for the second quarter of 2004. It is anticipated to be approximately one hour in
length and may be accessed by the public from the Company's website
(http://www.7M 40. The following is a reconciliation of
segment sales to consolidated sales and segment operating profit to
consolidated profit (loss) before taxes.7 48.6 $.4)

Capital expenditures $2 .7 314.3) $(5.2 166.9 14.1
Deferred income taxes 3.3
Total Shareholders' Equity 42.

cushioning foams

Merszei, Dow's executive vice president and chief financial
officer, stated:
"This was a tough quarter for Dow; feedstock and energy costs soared to
new highs and our U. Performance Chemicals reported EBIT of $298 million for the
third quarter, an increase of 84 percent compared with $162 million in the
same period last year.
Year-over-year caustic soda prices were up significantly, but these increases
were not sufficient to keep pace with the soaring cost of U.

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.02 per share, associated with the Company 's early redemption of
debt, reflected in Unallocated and Other.21)
Gains on
divestitures of
assets related
to the formation
of MEGlobal and
Equipolymers
joint ventures - 563 - 379 - 0.4 974.

Note C: In November 2004, Union Carbide Corporation sold a 2.

The Dow Chemical Company and Subsidiaries
Consolidated Balance Sheets

Sept.
With environmental regulations becoming stricter, companies will also
need to look into improving the public perception of polymer foams. * Net sales increased 10.09 per diluted
share, for the second quarter of 2005, compared to net income of $0.11
per diluted share for the second quarter of 2005 as compared to net income of
$0.4%, partially offset by lower
volumes of $7.
Excluding restructuring and severance charges of $0.4 million, segment
operating profit was $11.
Increased pricing to customers totaled $23.0 million during the second
quarter of 2005, a decrease of $7.0 million in the second quarter of 2004, a decline of 6.1 million for the second quarter of 2004. The Company completed the closure of MNA, and as part of the
transaction transferred distribution rights for several commercial
wallcovering brands to existing OMNOVA distributors , expanding upon the
Company's successful relationships.3 million for the second quarter of 2005, as
compared to operating profit of $0. The Access Code is 783565.1)

Net income (loss ) per diluted share $.09 $.4 129.6
Restructuring and severance (.2 .7 189.8
Trademarks and other intangible assets, net 9.3
Other assets 22.

pressurized crosslinked

51 $ 1.
"This was also a quarter that underscored the value of Dow's strategic
direction. And our commitment to financial discipline enabled us
to significantly reduce debt, while also ensuring continued cost constraint -
with the Company's Selling , Administrative and Research and Development
expenses as a percent of sales remaining below 6 percent . Volume was down 8 percent year-over-year, due in part to
the absence of a soybean rust outbreak in the southern United States and
difficult market conditions in Brazil.
"While suppliers can look forward to top line growth brought about by
these price increases, they will also have to contend with diminishing
margins as a result of spiralling energy prices," notes Frost + Sullivan
(http://chemicals.
Therefore, participants that can pass on price increases to their customers
and manage to retain them even if they have more appealing options are most
likely to be successful in the market.01 per diluted share, during the second quarter of 2004.8 million, down $6. Trialing activity continues at several key accounts, especially
in paper applications that utilize OMNOVA 's new GenCryl(R) Platinum Pt(TM)
latex.0-$3.3)
Corporate expense (2.8 ) (3.5 $397.3 $349.5 1.18) $(.8 $15.6
Total Current Assets 184.

foaming microns

82, a 26 percent improvement over the $0. Gulf Coast operations were disrupted by two severe
hurricanes. Dow Automotive reported a healthy year-over-year volume
improvement , outpacing the industry by securing higher content with its
traditional global OEM customer base and continuing to capture opportunities
with new customers. Accordingly, there is no assurance that the Company's
expectations will be realized. 30, Sept. 30,
In millions, except per share 2005 2004 2005 2004
amounts (Unaudited)
Net Sales $11,261 $10,072 $34,390 $29,225
Cost of sales 9,610 8,697 28,247 24,949
Research and development
expenses 264 248 790 761
Selling, general and
administrative expenses 379 341 1,153 1,051
Amortization of intangibles 13 19 40 64
Restructuring net gain (Note B) - - - 20
Equity in earnings of
nonconsolidated affiliates 240 232 739 626
Sundry income - net (Note C) 39 35 178 20
Interest income 42 19 98 58
Interest expense and
amortization of debt
discount 168 193 543 561
Income before Income Taxes and
Minority Interests 1,148 860 4,632 2,563
Provision for income taxes
(Note D) 328 214 1,153 702
Minority interests' share in
income 19 29 60 90
Net Income Available for Common
Stockholders $801 $617 $3,419 $1,771
Share Data
Earnings per common share -
basic $0.82 $0. The net
gain included gains totaling $563 million related to the
divestitures of assets in conjunction with the formation of two
new joint ventures, MEGlobal and Equipolymers; asset impairments
of $99 million related to the future sale or shutdown of
facilities; the recognition of a liability of $148 million
associated with a loan guarantee for Cargill Dow LLC, a 50:50
joint venture; and employee-related restructuring charges of $296
million.
In March 2005, the resale of these shares to private Kuwaiti
investors was completed, reducing Union Carbide's ownership
interest from 45 percent to 42.70 billion in 2004,
the European polymer foams market is forecast to grow at a compound annual
growth rate (CAGR) of 5. There are also
some concerns over the recyclability and toxicity of certain types of foams. We
will send you the information via e-mail upon receipt of the above
information.com

India:
Surbhi Dedhia
Corporate Communications
P: +91-22-2832-4705 Ext: 131
E: sdedhia@frost. Sales related to the
recently exited wallcovering distribution joint venture, Muraspec North
America (MNA), were $3. Also contributing to the lower year-over-year operating profit
were the lower sales volumes and reduced manufacturing absorption due to
inventory reductions of $5. The live audio
event will be hosted by OMNOVA Solutions ' Chairman and Chief Executive
Officer, Kevin McMullen. Specifically, the net income (loss) and net income (loss) per
diluted share excluding the work stoppage and restructuring and severance
costs (excluded items) is a non-GAAP financial measure.6 $220.6

Decorative Products (DP)
Operating profit $1.9) $2.4

Building Products (BP)
BP segment operating profit $.0
Selling, general and administrative 29.2 96.6 181.9 million and 40.

pressurized vitec

But Dow's response to these challenges was both swift and
effective , delivering another very good quarter for the Company and
demonstrating the commitment and the professionalism of Dow people throughout
our organization.82, up 26 percent from the third quarter of last year.

"This was a tough quarter for Dow; feedstock and energy costs soared to
new highs and our U. Third
quarter EBIT for the Plastics segment of $420 million was slightly lower than
the $428 million posted for the same period in 2004.
Price was up 9 percent, but volume was down 12 percent , principally the
consequence of hurricanes Katrina and Rita which impacted around half of Dow's
global ethylene glycol, caustic soda and vinyl chloride monomer production.

Pretax Impact on Impact on
Impact (1) Net Income (2) EPS (3)
Nine Months Nine Months Nine Months
Ended Ended Ended
In millions, Sept.

Note B: In the second quarter of 2004, the Company recorded a net pretax
gain of $20 million related to restructuring activities.5 percent and resulting in a pretax
gain of $70 million in the first quarter of 2005.
Prime among these challenges is the skyrocketing prices of crude oil and
its derivatives. Frost + Sullivan serves an extensive clientele that
includes Global 1000 companies, emerging companies, and the investment
community, by providing comprehensive industry coverage that reflects a
unique global perspective and combines ongoing analysis of markets ,
technologies, econometrics, and demographics.V.4%, or $19.5
million, versus $0.8 million.0 million of annual
incremental sales. A telephone replay will also be available beginning
at 2:30 p. Management believes
that presenting this information provides a more accurate basis for investors
to compare the financial results year over year.3) $(5.17) .01
Net income (loss) per diluted
share before excluded items
(net of tax) $.2 28.3 $189.2 $6.7 $1.com

Three Months Ended Six Months Ended
May 31, May 31,
2005 2004 2005 2004
(Unaudited)

Net Sales $209.4 5.

Consolidated Balance Sheets

May 31, November 30,
2005 2004
(Dollars in millions,
ASSETS: except per share amounts)
Current Assets
Cash and cash equivalents $14.2 15.8
Total Liabilities and Shareholders ' Equity $430.5

pressurized pvdf

By contrast, the segment saw healthy
growth in its Plant Genetics and Biotechnology business, driven by increased
demand for sunflower and corn seeds.9 billion for the third quarter, 11 percent
higher than the same period last year, with volume rising 2 percent as demand
continued to recover from customer inventory de-stocking earlier in the year.

(1) Net debt equals total debt ("Notes payable" plus "Long-term debt due
within one year " plus "Long-Term Debt") minus "Cash and cash
equivalents" and "Marketable securities and interest-bearing
deposits. Of this gain, $29 million was reflected in the Plastics
segment and $41 million was reflected in the Chemicals segment. 30,
In millions (Unaudited) 2005 2004 2005 2004
Operating segment sales
Performance Plastics $2,939 $2,417 $8,467 $6,875
Performance Chemicals 1,906 1,694 5,816 4,894
Agricultural Sciences 615 657 2,635 2,610
Plastics 2,900 2,608 8,682 7,167
Chemicals 1,297 1,340 4,126 3,986
Hydrocarbons and Energy 1,541 1,294 4,443 3,480
Unallocated and Other 63 62 221 213
Total $11,261 $10,072 $34,390 $29,225
Operating segment EBIT (1)
Performance Plastics $580 $238 $1,494 $697
Performance Chemicals 298 162 1,035 417
Agricultural Sciences (28) 43 469 545
Plastics 420 428 1,795 1,134
Chemicals 168 292 863 1,191
Hydrocarbons and Energy - - - (1)
Unallocated and Other (164) (129) (579) (917)
Total $1 ,274 $1,034 $5,077 $3,066
Geographic area sales
United States $4,123 $3,771 $12,868 $11,013
Europe 4,036 3,457 12,643 10,356
Rest of World 3,102 2,844 8,879 7,856
Total $11,261 $10,072 $34,390 $29,225

(1) The Company uses EBIT (which Dow defines as earnings before interest,
income taxes and minority interests ) as its measure of profit/loss
for segment reporting purposes. Polymer Foam Suppliers Challenged to Maintain Margins and Produce
Environmental-Friendly Products

LONDON, Valued at EUR 4. Moreover, the potential
loss of customers might leave them burdened with excess capacity ., Lyondell, Monotez, Nestaan Holland BV,
Nova Chemicals, Novacke Chemicke Zavody, s.5 million to
$29.0 million, or 19. "This
significantly improved performance is a result of the tremendous effort by our
employees who have persevered in an extremely challenging operating
environment .9 million in the second quarter of 2004.3
million, partially offset by approximately $1.
During the quarter, wallcovering margins improved in North America and
operating losses in Europe were significantly narrowed as compared to last
year. Year-to-date, sales of coated fabrics and
laminates to marine (up 40%), transportation (up 20%) and kitchen and bath (up
20%) are partially offsetting declines in residential furniture, consumer
electronics, and ready-to-assemble furniture.0 million in the second quarter of 2004.7 million in the second quarter of 2004.

Non-GAAP and Other Financial Measures - This earnings release includes a
non-GAAP financial measure, as defined by the Securities and Exchange
Commission.1 5.9% -% 1. Management believes that this information
is essential to providing the investor with an understanding of the Company's
business and operating performance.7 $15.5) (.7 $- $1.3) $(5.9 $5.6 .01 $(.7 49 .2 9.5

Long-term debt 197.2)
Treasury stock at cost; 1.

foams styrofoam

3 billion, 12 percent higher than the same period last
year. "But Dow's response to these challenges was both
swift and effective, delivering another very good quarter for the Company and
demonstrating the commitment and the professionalism of Dow people throughout
our organization . 30, Sept.com with the following information: your full name, company
name, title, telephone number , e-mail address, city, state and country. The company's industry expertise integrates growth consulting ,
growth partnership services and corporate management training to identify and
develop opportunities .4%

* Segment operating profit of $11.6 million, or $0.8 million, to $209.5 million or 18 .6 million in the second quarter
of 2004, driven by 26. Margins in coated fabrics and decorative laminates declined due to
higher PVC resin and plasticizer costs, which increased 30% and 40% year -over-
year, respectively. The Company also signed a new private label
agreement which is expected to generate $2.6 $.7 -
Restructuring and severance 1.1 $91.0 61 .8 2.5 57.2 $.

foaming polyurea

The quarter was marked by a further improvement
in polyethylene demand, with tightening global supply driving significant
price increases across all geographic areas ."

(2) Earnings before interest, income taxes and minority interests
("EBIT").

Description of Certain Items Affecting Results:
Nine-month periods ended September 30, 2005 and 2004

Earnings for the nine-month period ended September 30, 2005 were favorably
impacted by a pretax gain of $70 million, or $0.01 per
share, during the second quarter. 30, Sept .5 million in the second quarter of 2005 as compared to $47.1% of net sales, in the second quarter of 2005 versus
$36.1
million during the quarter, which positively impacted operating income by $0 .6 million for the second quarter of 2005
as compared to $3.3 million for the second quarter of 2004 . The
increase was a result of higher unit pricing across all product lines.3) $(5.4 $(0.01 $(.18) $(. Forward-looking statements may generally be identified by
the use of forward-looking terms such as "may," "should," "projects,"
"forecasts," "seeks," "believes," "expects," "anticipates ," "estimates,"
"intends," "plans," "targets," "likely," "will," "would," "could," or similar
terms .1 1.9
Prepaid pension 54.0
Total Assets $430.

ruey flotation

Price improved 12 percent year-over-year, with increases in all geographic
areas and across virtually every business, while volume held steady compared
with a very strong third quarter in 2004, despite the impact of the two
hurricanes that hit the U. The
Company's gross debt to total capital ratio was 41 percent. None of these items
impacted results for either the third quarter of 2005 or the third quarter of
2004. Leading market
participants such as BASF and Dow have increased the lambda values in their
products to meet the need for energy -efficient insulation materials.9 million versus $8.8%, or approximately 150 positions, to
1,850 positions .1% year-over-year," said
Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer.

"We will continue to take further actions to improve financial
performance including developing new value-added products, implementing LEAN
SixSigma programs to eliminate waste and increase customer satisfaction,
improving operating efficiencies and initiating pricing actions where needed.4
million . Volumes in paper continue to be negatively impacted by an ongoing
six-month strike at a major customer plant and higher European imports of
coated paper.9 million versus 2004.3% compared to $28. To listen to the telephone replay, callers should dial: (USA) 800-475-
6701 or (Int'l) 320-365-3844.4
Net income (loss) before excluded
items (net of tax) $4.6 $.5 $397.7) -
Restructuring and severance (.1) (4.6 $3.4
Interest expense (5.1) -
Profit (Loss) Before Income Taxes $3.omnova.3 $189.2
Accounts payable 85.7 million
shares outstanding at May 31, 2005 and
November 30, 2004, respectively 4.4 310.

ruey replicate

MIDLAND, Mich.S. Specialty
Polymers also reported a good quarter, benefiting from the sale of FILMTEC (TM)
membranes to the world's largest desalination plant in the Middle East. And
Acrylics and Oxide Derivatives recorded a strong increase in both sales and
earnings, as the business overcame the impact of higher feedstock costs and
lower volume. Committed to the principles of
sustainable development, Dow and its 43,000 employees seek to balance
economic, environmental and social responsibilities . 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. In addition ,
earnings for the nine-month period ended September 30, 2005 were favorably
impacted by an after -tax benefit of $113 million, equivalent to $0.12 per
share, related to the plan to repatriate foreign earnings in 2005 under the
American Jobs Creation Act of 2004 ("AJCA").87
Common stock dividends
declared per share of common
stock $0.335 $0. EBIT includes all operating items
related to the businesses and excludes items that principally apply
to the Company as a whole. A reconciliation of EBIT to "Net Income
Available for Common Stockholders" is provided below:

Three Months Ended Nine Months Ended
Sept.
If you are interested in a research overview, which provides
manufacturers, end-users and other industry participants with a synopsis of
the latest analysis of the European Markets for Polymer Foams (B514-39) -
then send an e-mail to Katja Feick - Corporate Communications at
Katja.com

APAC:
Donna Jeremiah
Corporate Communications
P: +603-6304-5832
F: +603-6201-7402
E: djeremiah@frost ., Saint Gobain, Shell, Shinetsu
International Europe, Solvin PVC, Styrochem Finland Oy, Styropack (UK) Ltd., Vestolit, Vinnolit GmbH + Co.3 million for the
second quarter of 2005 as compared to $189. The improved results
were driven by aggressive cost reductions and improved pricing. Their focus and commitment is clearly making a difference. Also,
European and Asian sales increased significantly for the quarter, up 47% and
24%, respectively. New pricing actions were announced in May 2005 across
most product lines in an effort to offset raw material cost inflation. Volatility in the ISO industry , related to price and
availability, contributed to the weaker volumes in the membrane systems.13 )

Number of diluted shares
outstanding 40.2 $171.9 122 .4

Performance Chemicals (PC)
Operating profit $11.4) (5.6 262.7 11.5
Restructuring and severance 1.0 .4)
Income tax expense - .0 135.1 12.4 $432.

microspheres flotation

Net income rose 30 percent to $801 million, while earnings per
share were $0.
At the end of the quarter, Dow's net debt to capital ratio was 32 percent, 14
percentage points lower than at the end of the same quarter in 2004 .S.12 -
Employee-related
restructuring
charges - $(296) - $(200) - $(0.15 $ 0.0
Weighted-average common
shares outstanding - diluted 978."
Targeting new application areas will call for enhanced product
development and suppliers will have to allocate considerable resources to
this end if they are to stay competitive . They have to make it clear that
the use of foams - in insulation, for example - can actually conserve energy
and prevent the release of more greenhouse gases into the atmosphere. Included in
the second quarter of 2004 were restructuring and severance charges of $0. Excluding these charges, the Company generated net income of $0.0 million or 16.6 million during the quarter and we
also reduced our SG+A costs by $6.1 million of increased pricing
to customers.m. EDT.3 .3M 40.4) - (.1) (10.8) (10.8

This earnings release contains statements concerning trends and other
forward-looking information affecting or relating to the Company and its
industries .

Web Site: http://www.1 10.2
Additional contributed capital 311.9
Retained deficit (263.

crosslinked ruey

natural gas." The gain was partially offset by a pretax charge of $31
million, or $0.
In the nine-month period ended September 30, 2004, the Company recorded a
net pretax gain from restructuring of $20 million, equivalent to $0. 30, Sept. 30, Sept.2 940.babalola@frost. Segment operating profit was $11.01 $(.1M

Effective tax rate -% 23.6
Building Products 29.3 $349.1 $3.7 $8.5 36.5)

Basic and Diluted Income (Loss) Per Share
Net Income (Loss) Per Share $.4)
Accumulated other comprehensive income 1.

foams crosslinked

-- Strong cash flow allowed the Company to further reduce debt by $500
million, bringing its net debt(1) to capital ratio to 32 percent - down
14 percentage points from 46 percent at the end of the third quarter of
last year. Our nonconsolidated joint ventures once again added
substantially to our bottom line, with equity earnings for the quarter rising
compared with last year.
Sales in Performance Chemicals rose to $1. Third quarter EBIT for Agricultural
Sciences fell by $71 million compared with the same period a year ago,
resulting in a loss for the quarter of $28 million. This rising trend has affected almost all manufacturers of
organic chemicals, including polymer foam suppliers.com

North America:
Tolu Babalola
Corporate Communications
P: +1-210-477-8427
F: +1-210-348-1003
E: tolu., Alveo, Arkema,
Armacell Engineered Foams, BASF, Bakelite, Baxenden Chemicals, Bayer,
BorsodChem Rt, BP, British Vita Plc, Bufa PU, Caligen, Carpenter Co.0
million related to a previously announced workforce reduction. I
would like to thank all OMNOVA Solutions employees for their ongoing
dedication to creating value.4 million during the quarter due
to increases in styrene, butadiene, acrylic, and most secondary raw materials. Strong
growth in thermoplastic polyolefin (TPO) was offset by weaker volumes in EPDM
and polyvinyl chloride (PVC) membrane systems, and polyisocyanurate (ISO)
insulation . EDT on June 21, 2005, and ending at 11:59 p. EDT on June 28,
2005.

Three Months Ended Six Months Ended
May 31, May 31,
Dollars in millions,
except per share data 2005 2004 2005 2004

Net income (loss) $3.3 $2.8
Work stoppage - - (1. There are many
risks and uncertainties that could cause actual results or outcomes to differ
materially from those described in the forward -looking statements, some of
which are beyond the Company's control, including inherent economic risks ,
changes in prevailing governmental policies and regulatory actions, and
litigation risks inherent in the Company's business.8
Income (Loss) Before Income Taxes 3.5

Property , plant and equipment, net 160.5
Other current liabilities 17.

microspheres polystyrene

9 billion for the third quarter
of 2005, an increase of 13 percent compared with the same period last year.
The Agricultural Sciences segment had a disappointing third quarter,
posting sales of $615 million, down 6 percent from $657 million in the same
quarter a year ago.
Sales in the Chemicals segment declined slightly in the third quarter
compared with the same period a year ago, dropping 3 percent to $1.005
Weighted-average common
shares outstanding - basic 965.frost.01 per share last year, the best performance in the last
12 quarters

* Excluding restructuring and severance charges of $1.5 million during the same period a
year ago. Included in the
second quarter of 2005 were restructuring and severance charges of $0.5)
Excluded items (net of tax):
Work stoppage - - 1.02 - (.11 $.3 $.4

Costs and Expenses
Cost of goods sold 163.3
Other expense, net .4 (7.3
Total Current Liabilities 125.7
Other liabilities 14.

elcon microspheres

Gulf Coast. References to "Dow" or
the "Company" mean The Dow Chemical Company and its consolidated subsidiaries
unless otherwise expressly noted.

Supplemental information
The following table summarizes the impact of certain items recorded in the
nine-month periods ended September 30 , 2005 and 2004.05 -
Loss on early
extinguishment
of debt (31 ) - (20) - (0.66 $3.51 $1.

Maturing Polymer Foams Market Faces Rising Raw Material Costs and Stricter Environmental Regulations

Similarly, BASF - another major
supplier to the polyurethane (PUR) foam industry - raised the prices of its
Pluracol polyol products twice , in 2004 and early 2005.,
Celotex, Cires, Contitech, CPR Chemicals + Polymers Reps Srl, Cuming Corp .0 million, EPS of
$0.8 million versus the same
quarter last year, driven by $26.
Workforce reductions year-over-year totaled almost 200 positions, or a decline
of 14%.

Earnings Conference Call - OMNOVA Solutions has scheduled its Earnings
Conference Call for Tuesday, June 21 , 2005, at 11:00 a.m.8
Decorative Products 62.0
Total Sales $209.4)
DP segment operating
profit (loss) $.2) (5.8 69.1
Depreciation and amortization 5.

polystyrene yixing

Comment

Geoffery E.S. Results for the segment in the third quarter were
bolstered by the successful integration of ENGAGE(TM), NORDEL(TM) and
TYRIN(TM) elastomers, acquired in connection with the dissolution of the
DuPont Dow Elastomers joint venture. Dow Latex had a
strong quarter, with both Emulsion Polymers and UCAR(TM) Emulsion Systems
reporting double-digit price increases in most geographic areas. Although feedstock and energy costs are expected to remain high and
volatile , our continued focus on financial discipline and margin management
should reap another year-over -year earnings improvement in the fourth quarter
- and 2006 should exceed our performance in 2005 ," he said. The net gain included: gains of $563 million
from asset divestitures associated with the formation of two new joint
ventures, MEGlobal ($439 million gain in the Chemicals segment) and
Equipolymers ($124 million gain in the Plastics segment); charges totaling $99
million for asset impairments related to the future sale or shutdown of
facilities ($89 million charge in the Performance Chemicals segment , $10
million charge in Unallocated and Other); a charge of $148 million (in
Unallocated and Other ) in recognition of a liability associated with a loan
guarantee for Cargill Dow LLC, a former 50:50 joint venture; and employee-
related restructuring charges of $296 million, reflected in Unallocated and
Other. 30, Sept.335 $1.2 per cent to reach EUR 6. Leading suppliers such
as Dow had to increase its methylene di isocyanate (MDI) and toluene di
isocyanate (TDI) prices three times in 2004.
For instance, companies with a strong presence in the EPS market are
already responding to demand from the building and construction segment for
products with excellent insulation characteristics .
R+D efforts are underway to produce more economical and environmentally
friendly blowing agents in accordance with these concerns and regulations. These
energy savings far outweigh the greenhouse gas emissions resulting from foam
production.feick@frost. NOVAKY, Olmo, Ottobock,
Polidex, Polymeri Europa, Quimidroga SA, Recticel, Reisgies Schaumstoffe
GmbH, Rogers Corporation, Sabic UK Ltd.7 million last year

* Net income of $3.
(NYSE: OMN) today reported net income of $3. Selling, general and administrative costs decreased $6.5 million, or 14.1% higher average unit selling price and 2.0 million for the second
quarter of 2005 as compared to $4.9 million versus the same period a
year ago, helping to partially offset the three-year cumulative effect of raw
material cost inflation.3 $(7.6M 40.0 54.7) -
PC segment operating profit $11.7 $14.6 $10.5)
Corporate restructuring and severance (.3 $(7.7 3.5 23.3 4.5) (256.6 million and 1.

microns polyolefin

Although Dow's feedstock and energy costs were almost $850 million higher
than a year ago, the Company recorded its 11th consecutive quarter of year-
over-year margin recovery and was able to further reduce debt by $500 million.

The Dow Chemical Company and Subsidiaries
Operating Segments and Geographic Areas

Three Months Ended Nine Months Ended
Sept.71 billion in 2011.
With many companies now relocating their manufacturing bases to eastern
European countries offering cheaper labour, many polymer foam suppliers -
especially those catering to specific end user markets such as expandable
polystyrene (EPS) in packaging - will see a significant erosion in their
customer base. Ramasubramanian.7 million of higher raw material costs which
was partially offset by lower manufacturing expenses. Total Company
headcount year-to-date has declined 7."

Performance Chemicals - Net sales during the second quarter of 2005
increased 28.1 million for the second quarter of
2005 as compared to profit of $3.01) $(. Forward-looking statements address the Company's business, results of
operations, financial condition, significant accounting policies and
management judgments, among other things, and include statements based on
current expectations, estimates, forecasts and projections.
OMNOVA Solutions Inc.8 5.5
Interest expense 5.0
Accounts receivable, net 111.6
Deferred income taxes 3.7
Prepaid expenses and other 3.0 175.5 9.5 million and 42.7 million
shares at May 31, 2005 and November 30, 2004,
respectively (10.

winboss cuming

Polystyrene also delivered good
volume growth during the quarter , with a modest improvement in earnings.01

(1) Impact on "Income before Income Taxes and Minority Interests"
(2) Impact on "Net Income Available for Common Stockholders"
(3) Impact on "Earnings per common share - diluted"

THE DOW CHEMICAL COMPANY - 3Q05 EARNINGS
Financial Statements (Note A)

The Dow Chemical Company and Subsidiaries
Consolidated Statements of Income

Three Months Ended Nine Months Ended

Sept.1 937.6 million or $0.3 million,
or $0.8 million in
2004.4 million in the second quarter of 2005. Specialty chemical volumes improved mid-single digits on new product
introductions. Sales in nonwovens and adhesive /tape applications increased by
over 30% versus last year on the strength of pricing and new products .
Operating profit was negatively impacted by higher raw material and purchased
product costs, lower EPDM, PVC and ISO volumes, and higher manufacturing costs
which were partially offset by lower warranty expense.
Following the live webcast, OMNOVA will archive the call on its website until
noon EDT, June 28, 2005.0 69.5 $6.3 $(5.9 $8.0) (5.8 10.09 $.14)

OMNOVA SOLUTIONS INC.9

Shareholders' Equity
Preference stock - $1.8 50.

polyurea foaming

Our Performance Plastics and Performance Chemicals businesses each
had a strong quarter compared with a year ago - reinforcing the benefit of our
diversified business portfolio . Increased demand for Dow's products in Europe
offset declines in other parts of the world - demonstrating the merit of
geographic balance.89
Earnings per common share -
diluted $0.65 $3.4 951. These statements should be read in
conjunction with the audited consolidated financial statements and
notes thereto included in the Company's Annual Report on Form 10-K
for the year ended December 31, 2004. 31,
In millions (Unaudited) 2005 2004
Assets
Current Assets
Cash and cash equivalents $3,179 $3,108
Marketable securities and
interest-bearing deposits 31 84
Accounts and notes receivable:
Trade (net of allowance for
doubtful receivables -
2005: $188; 2004: $136) 4,927 4,753
Other 2,870 2,604
Inventories 5,450 4,957
Deferred income tax assets -
current 393 384
Total current assets 16,850 15,890
Investments
Investment in nonconsolidated
affiliates 2,311 2,698
Other investments 2,185 2,141
Noncurrent receivables 141 189
Total investments 4,637 5,028
Property
Property 41,415 41 ,898
Less accumulated depreciation 28,085 28,070
Net property 13,330 13,828
Other Assets
Goodwill 3,140 3,152
Other intangible assets (net of
accumulated amortization -
2005: $534; 2004: $507) 475 535
Deferred income tax assets -
noncurrent 4,032 4,369
Asbestos-related insurance
receivables - noncurrent 854 1,028
Deferred charges and other
assets 2,419 2,055
Total other assets 10,920 11,139
Total Assets $45,737 $45,885

Liabilities and Stockholders' Equity
Current Liabilities
Notes payable $203 $104
Long-term debt due within one year 719 861
Accounts payable:
Trade 3,478 3,701
Other 1,531 2,194
Income taxes payable 432 419
Deferred income tax liabilities
- current 465 205
Dividends payable 327 342
Accrued and other current liabilities 2,573 2,680
Total current liabilities 9,728 10,506
Long-Term Debt 9,969 11,629
Other Noncurrent Liabilities
Deferred income tax liabilities
- noncurrent 1,467 1,301
Pension and other postretirement
benefits - noncurrent 3,898 3,979
Asbestos-related liabilities -
noncurrent 1,426 1,549
Other noncurrent obligations 3,253 3,202
Total other noncurrent
liabilities 10 ,044 10,031
Minority Interest in Subsidiaries 333 449
Preferred Securities of
Subsidiaries 1,000 1,000
Stockholders' Equity
Common stock 2,453 2,453
Additional paid-in capital 572 274
Unearned ESOP shares (4) (12)
Retained earnings 13,952 11,527
Accumulated other comprehensive loss (1,689) (977)
Treasury stock at cost (621) (995)
Net stockholders' equity 14,663 12,270
Total Liabilities and
Stockholders' Equity $45,737 $45,885

See Notes to the Consolidated Financial Statements. 30,
2005 2004 2005 2004

EBIT $1,274 $1,034 $5 ,077 $3,066
+ Interest income 42 19 98 58
- Interest expense and
amortization of debt
discount 168 193 543 561
- Provision for income
taxes 328 214 1,153 702
- Minority interests' share
in income 19 29 60 90
Net Income Available for
Common Stockholders $801 $617 $3,419 $1,771

Sales Volume and Price by Operating Segment and Geographic Area

Three Months Ended Nine Months Ended
Sept. The
public still considers polymer foams as harmful to the environment, primarily
because of their use of blowing agents.4 million from the first
quarter of 2005.
"We generated our strongest earnings results in three years despite record
raw material increases of approximately $27 million. Productivity improved by nearly 6% year-to-date
versus the same period last year.
The Company and the local union at the Mogadore, Ohio manufacturing
facility agreed to a new four-year contract on June 2, 2005.1%.
During the quarter, the Company completed several key LEAN SixSigma
projects which are expected to improve manufacturing line speeds and reduce
changeover time and scrap rates.com ).m.0 .4
Total Segment Operating Profit $11.4 $(7. The Company disclaims any obligation, other than imposed
by law, to publicly update or revise any forward-looking statements , whether
as a result of new information, future events or otherwise.1 - .1
Net Income (Loss) $3.6
Inventories 50.5

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Liabilities
Current portion of long-term debt $.5
Accrued payroll and personal property taxes 12.2 48.10 par value; 135 million
shares authorized; 42.7) (11.

cushioning winboss

-- Earnings per share were $0.87

Review of Third Quarter Results
The Dow Chemical Company (NYSE: DOW) reported sales of $11."
In the Performance Plastics segment, sales for the third quarter were $2. Volume was also up in Dow's Building and Construction
business, with strong demand growth for STYROFOAM(TM) brand products in both
Europe and North America.
This improvement was driven by a 17 percent increase in price, while volume
was down 4 percent from the robust levels of a year ago. 30,
except per 2005 2004 2005 2004 2005 2004
share amounts

Gain on sale
of EQUATE
shares $ 70 - $46 - $ 0.02) -
AJCA repatriation
of foreign
earnings - - 113 - 0.40
Asset impairments - (99) - (69) - (0.8
Depreciation $454 $515 $1,378 $1,435
Capital Expenditures $400 $321 $1,050 $851

Notes to the Consolidated Financial Statements:

Note A: The unaudited interim consolidated financial statements reflect
all adjustments which, in the opinion of management, are
considered necessary for a fair presentation of the results for
the periods covered. 30, Dec."
Compounding this challenge is the fact that most end users, particularly
those in the commodity segments of comfort and packaging applications, are
extremely cost conscious and unwilling to absorb these price increases.
"Companies will have to look at alternative ways of utilising this
capacity," says Mr. In fact, product development is
likely to be a major driving force for polymer foams to break new ground in
high-end applications.feick@frost.V., Kaucuk, Kay -Metzeler, LVM N.1 million to $163. Gross profit declined
to $45. We reduced
controllable manufacturing costs by $4. As compared
to last year, raw material costs were up $19. Focused cost reduction and LEAN SixSigma initiatives
have led to record low spending levels as a percentage of sales for SG +A and
manufacturing expenses.
Included in second quarter 2005 results were higher raw material costs of $2.2 million during the second quarter of 2005, an
increase of 4. Set forth below is a
reconciliation of this non-GAAP financial measure to the most directly
comparable GAAP financial measure. Some important risks,
uncertainties and factors that could cause the Company's actual results or
outcomes to differ materially from those expressed in or implied by its
forward-looking statements include , but are not limited to, the following:
general economic trends affecting OMNOVA Solutions' end-use markets; raw
material prices and availability for petrochemicals and chemical feedstocks
including styrene, butadiene, and polyvinyl chloride; ability to increase
pricing to offset raw material cost increases; unexpected adverse litigation
judgment and absence of or inadequacy of insurance coverage for such judgment;
prolonged work stoppage resulting from labor disputes with unionized
workforce; acts of war or terrorism; ability to develop successful new
products; customer and/or competitor consolidation; customer ability to
compete against increased foreign competition; operational issues at the
Company's facilities; availability of financing to fund operations at
anticipated rates and terms; ability to successfully implement productivity
enhancement and cost reduction initiatives; governmental and regulatory
policies; rapid increases in health care costs; risks associated with foreign
operations including fluctuations in exchange rates of foreign currencies; the
Company 's strategic alliance and acquisition activities; assumptions used in
determining pension plan expense and funding, such as return on assets and
discount rates; compliance with extensive environmental , health and safety
laws and regulations; and substantial debt and leverage and the ability to
service that debt.5 11.1 4.4
205.7 3.