Dow Implements Another Major Price Increase

Midland, MI, June 25, 2008--Dow Chemical Co. said Tuesday that it was raising prices up to 25 percent, as well as introducing freight surcharges and reducing production in plants across North America and Europe to offset a "relentless rise" in energy costs.

The increase comes after a 20 percent rise last month that the company said did not go far enough given the continuing surge in energy prices.

The company also said it would institute freight surcharges of $300 a truck shipment and $600 a rail shipment beginning Aug. 1 in the U.S.
 
Dow's 3,200 products are used in a wide range of consumer goods, including carpet.

Andrew Liveris, Dow's CEO, said the changes were "extremely unwelcome but entirely unavoidable" as oil and natural gas prices continue to set records.

The company said its feedstock and energy costs, which are up more than 40 percent since last year, have increased fourfold, to more than $32 billion, over the last five years.