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Dow Automotive Increases Global Presence

13 October 2000

Dow Automotive Increases Global Presence; Plans Gurit-Essex AG Acquisition

    AUBURN HILLS, Mich. and WATTWIL, Switzerland, Oct. 12 The Dow Chemical Company , through its business unit, Dow
Automotive, has reached an agreement with Gurit-Heberlein AG to acquire the 50
percent interest in Gurit-Essex AG that it does not currently own.
    Gurit-Essex is the largest European supplier of automotive adhesives,
sealants and body engineered systems for the automotive OEM and aftermarket.
Terms of the agreement were not disclosed.
    Gurit-Essex was formed more than 30 years ago as a joint venture between
Gurit-Heberlein and Essex Chemical Company Inc. to supply structural adhesives
for glass bonding to the regional automotive industry in Europe, Africa, the
Middle East and countries of the former Soviet Union.  In 1988, The Dow
Chemical Company purchased Essex Chemical, and therefore became a 50/50
partner with Gurit-Heberlein in the Gurit-Essex organization.
    "This agreement will strengthen our relationships with Dow Automotive's
global customers and will afford a significant growth opportunity for us,"
said Larry Denton, Dow Automotive president.  "We're excited to be able to
offer customers the combined resources, products and personnel of the new
organization -- and look forward to the opportunity to increase the visibility
of Dow Automotive on a global scale."
    The acquisition will globalize Dow Automotive's product availability, and
double the company's adhesives, sealants and body engineered systems business.
    Additionally, the acquisition will enhance Dow Automotive's technology
offering, combining engineering capabilities and innovative solutions to
customers on a global scale.
    The transaction is expected to close by the end of first quarter, 2001,
pending regulatory approvals.