Dow To Shutter XLA Production

The Dow Chemical Co., Midland, Mich., 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 said 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 Dow’s other performance businesses for further
investment and expansion.

Dow launched DFS and its core Dow XLA fiber technology in 2002, and apparel featuring the
olefin-based soft stretch fiber began appearing in retail markets in 2004. 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.

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.

July/August 2010