Dow AgroSciences LLC has announced plans to reduce up to 700 jobs from its global operations by year-end 2000. Most of the affected jobs will be known and announced by the first quarter of 2000.

“We have made steady progress in recent years reducing our expenses while also realizing
dramatic improvements in our manufacturing conversion costs,” said A. Charles Fischer,
president and chief executive officer of Dow AgroSciences. Some initial structural cost recovery
is being achieved within Mycogen and Sanachem—recent acquisitions that are being streamlined for more cost-effective operation. In addition, Dow AgroSciences has benefited from The Dow Chemical Company’s extensive cost reduction effort during the past few years—particularly in the manufacturing sector.

“Despite this encouraging progress, a new competitive reality has imposed challenging business
conditions,” noted Fischer. “While our diverse market portfolio has enabled us to fare better than
many companies during this agricultural economy downturn, today’s business environment
requires even more aggressive interventions in order to achieve our objective of year-to-year
profitability gains.”

A substantial number of the projected reductions in the U.S. organizational structure are expected to be achieved through a U.S. voluntary retirement incentive offer. Also, the restructuring of the Dow AgroSciences Information Management organization will more effectively leverage service capabilities provided by The Dow Chemical Company, 100% owner of Dow AgroSciences. In addition, a decision was reached to close the Mycogen Seeds facility in Eagan, Minnesota effective July 1, 2000. This move is essential to better align the Mycogen Seeds business with Dow AgroSciences and take advantage of the synergy and leverage that can be realized.

As part of the Dow AgroSciences’ Business Effectiveness Initiative, productivity assessment
teams are examining all business processes to eliminate waste and inefficiencies. As processes are optimized, the number of jobs in the organizational structure will be selectively reduced.

“The collective impact of a difficult agriculture economy, industry consolidation, the growth of
generic products, and the emergence of biotechnology has slowed the anticipated growth of our
conventional crop protection chemicals business,” noted Fischer. “As a responsibility to our
stakeholders, we are dedicated to improved profitability and the preservation of a long-term
sustainable business.” Fischer continued, “As we move forward, it is my commitment that this
restructuring process will be conducted in a manner that respects the dignity of our employees
and aligns with our Core Values.”

Dow AgroSciences LLC, based in Indianapolis, Indiana, is a global leader in providing pest
management and biotechnology products that improve the quality and quantity of the earth’s food
supply and contribute to the safety, health and quality of life of the world’s growing population.
The company operates in over 50 countries and has annual worldwide sales of over $2 billion.
Dow AgroSciences is a wholly owned subsidiary of The Dow Chemical Company.

Company news release
N2269