DOW AND UT AUSTIN EXTEND R&D COLLABORATION FOR DRUG SOLUBILIZATION BASED ON ADVANCED PARTICLE ENGINEERING

MIDLAND, MI-(November 2, 2004)- The Dow Chemical Company and The University of Texas at Austin (UT Austin) have announced the renewal of their ongoing research collaboration to develop and commercialize drug solubilization technology for critical pharmaceutical applications. The expanded research agreement supports continued growth for BioAqueous^SM solubilization services, an offering of the Dowpharma business unit of The Dow Chemical Company, which apply particle engineering technologies to improve the bioavailability of poorly soluble drug compounds.

Increasing the bioavailability of poorly soluble drug compounds is one of the greatest challenges the pharmaceutical industry faces for more effective delivery of small molecule drug compounds. “Dowpharma’s collaboration with The University of Texas at Austin is oriented towards rapidly bringing novel drug delivery solutions to our pharmaceutical clients,” said Nick Hyde, business director, Dowpharma. He added, “Our strengths in applied research and development, scale-up and commercialization, combined with UT Austin’s core research capabilities has resulted in the development of unique solutions to one of the largest roadblocks in small molecule drug development today. This expanded agreement exemplifies our commitment to the evolution of innovative technology to meet the pharmaceutical market’s needs.”

The Dow and UT Austin collaboration begins its fifth year by advancing targeted therapeutic application development and continues to draw on previous research on initial technology discovery and proof-of-concept achievements. It will build on an interdisciplinary approach directed by Robert O. (Bill) Williams III, Ph.D., professor of pharmaceutics in UT Austin’s College of Pharmacy, and Keith P. Johnston, Ph.D., professor of chemical engineering in the Department of Chemical Engineering.

“Our collaborative research has demonstrated the applicability of our particle engineering technologies to improve the performance and bioavailability of poorly soluble drug compounds, whether they are newly discovered or already in existence,” said Edmund J. Elder, Ph.D., pharmaceutics director, Dowpharma. He added, “So far, we’ve been able to demonstrate the applicability of our technologies to compounds in a variety of therapeutic areas, including cardiovascular, metabolic, and antifungal drug compounds.”

BioAqueous solubilization services developed by Dow show the ability to alter particle size, surface area, or morphology to create nanostructured particles that can improve a drug's ability to dissolve in the body. Based on the specific challenges of a particular drug compound, an initial feasibility study employs Dow's portfolio of advanced particle engineering technologies to develop customized solutions to meet the desired performance objectives of the compound. Beyond a feasibility study, BioAqueous solubilization services include support through all stages of development, optimization, and production of clinical and commercial supplies.

About Dowpharma
Dowpharma serves the pharmaceutical and biopharmaceutical industries with innovative technology, products, and services for clients in drug discovery, development, manufacturing, and delivery. Dowpharma combines the resources and capabilities of several offerings to create a single-market-focused organization with broad service and support capabilities for large and emerging pharmaceutical companies.

About Dow
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. For more information on The Dow Chemical Company, visit www.dow.com <http://www.dow.com>.

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