Dow To Shut Down XLA Production

The Dow Chemical Company, Midland, Mich., has announced it will exit its Dow Fiber Solutions (DFS)
business and shut down production of DOW XLA™ stretch fiber over the next six to 18 months. The
company stated that the action is in line with its strategy to streamline and focus its business
portfolio, and follows a determination that DFS could not compete with its other performance
businesses for further investment and expansion.

Dow launched DFS and its core Dow XLA fiber technology in 2002. Apparel featuring the
olefin-based soft stretch fiber began appearing in retail markets in 2004, and the company had
continued into this year to market the technology and partner with apparel brands to feature XLA.
The fiber withstands extreme chemicals and temperatures up to 220°C as well as harsh dyeing,
bleaching, mercerizing and garment-washing conditions; and is compatible with both natural and
man-made fibers.

“We will take every reasonable step to minimize any disruption to our customers’ business and
to support their final product supply requirements as they plan to transition their current
business with XLA to suitable alternative materials,” said Rebecca Bentley, senior public affairs
leader, financial communications & media relations, Dow.

DFS’s XLA production facility, located in Tarragona, Spain, will continue to fill customers’
current and final orders for the fiber. After final shut-down of the XLA operation, the facility
will be considered for an alternative use within Dow. In the meantime, Dow also will be exploring
future alternatives for the business.



May 25, 2010

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