Michelin and Dow Sign PAX System Supply Agreement

                  - Dow to Supply Polyurethane Support Ring
                  For Innovative Tire/Wheel System Project -

    GREENVILLE, S.C., March 14 The Michelin Group and The Dow
Chemical Company have signed an agreement for Dow to supply
Michelin with a polyurethane-based inner support wheel that will enable an
automobile with a flat tire to travel up to 125 miles at 55 miles-per-hour.
This run-flat support wheel will be featured in Michelin's PAX system, an
innovative, integrated tire/wheel system.

    Because of its run-flat capability and other significant improvements over
today's conventional or run-flat tires, the PAX System has been called the
"next industry standard" in tire/wheel design.

    Representatives from both companies met today at Michelin North America's
Headquarters in Greenville, SC, to sign the contract for the Michelin-invented
PAX System.  The PAX System eliminates the need to carry a spare tire, making
automobiles lighter weight -- and therefore more fuel-efficient -- and
affording extra space for more storage and design features.  The PAX System
also improves comfort and handling.

    Today's signing comes as part of an ongoing joint development agreement
between the two companies that began in February of 2000.  "We see this
contract as the official start to a prosperous and long-term relationship with
Michelin and a significant new business opportunity for Dow," said Bob Wood,
Business Group President for Dow's Thermoset businesses.  "This contract gives
Dow an entry into the high potential tire market and provides us with the
framework to work with Michelin, the leader in PAX System technology."

    The contract guarantees Dow a significant percentage of Michelin's
business for polyurethane run-flat support wheels over the coming years.
Results of this development will be made available to other PAX System
licensees (Goodyear and Pirelli at the present time.)

    Based on a 10% market share for new cars, the agreement, over time, could
represent hundreds of millions of dollars in annual revenues for Dow.

    The polyurethane support ring provided by Dow is mounted on the wheel and
is a key component in PAX System's run-flat capability.  The tire, which rests
on the support ring, can continue to run deflated for up to 125 miles.  In
addition to the support ring, the PAX System includes an innovative tire-wheel
configuration and a pressure-monitoring device.

    "At Michelin we know the value of working with other innovators and
technology leaders," said Thierry Sortais, the vice president of Michelin's
worldwide PAX System Project. "We see the Dow polyurethane support ring as a
new and efficient technology.  By working with Dow, we've created a
competitive advantage for the PAX System."

    Martin Wardle, Vice President Purchasing for Michelin North America signed
the agreement on behalf of the international tire maker.  The official
signature for The Dow Chemical Company was penned by Wood.