UCON Fluids and Lubricants

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1 The Dow Chemical Company Performance Fluids Midland, MI For editorial information: Harold Nicoll, APR Communications Leader (989) EDITORIAL BACKGROUNDER UCON Fluids and Lubricants UCON Fluids and Lubricants include UCON Quenchants, a series of nonflammable, aqueous solutions containing special polymers and corrosion inhibitors for quenching both ferrous and nonferrous metals. They can replace water, oil, or brine solutions and are a preferred quenching media for both low- and high-hardenability, plain carbon, and alloy steels. UCON ULTRAQUENCH Series Quenchants were recently introduced to provide additional protection against corrosion and microbial growth. History UCON Fluids and Lubricants are polyalkylene glycol (PAG)-based synthetic products that were first introduced in the mid-1940s by Union Carbide Corporation (UCC). UCON Hydrolubes, which are water-glycol hydraulic fluids, were among the first UCON products -- produced to meet the U.S. Navy s need for fire-resistant hydraulic fluids on aircraft carriers during World War II. While UCON Fluids and Lubricants have a long track-record of performance, the technology behind the products has been continuously advanced, and the product line expanded and updated, to meet evolving customer requirements. UCC became a wholly-owned subsidiary of The Dow Chemical Company in 2001 and Dow offers an expanding line of UCON Fluids and Lubricants as part of its Performance Fluids portfolio. - more -

2 Product Descriptions and Applications UCON Fluids and Lubricants include a wide range of base fluids and formulated products. These polyalkylene glycol (PAG)-based synthetic products differ significantly from petroleum, animal, and vegetable oils. PAG-based products enable lubricant formulators to vary physical and performance properties and to control formulation variables with greater precision than is possible with natural oils. This enables the development and commercialization of more highly differentiated products offering enhanced performance matched to specific service requirements. PAG-based fluids and lubricants also have advantages over other synthetics including polyol esters and phosphate esters including lower acid formation under use conditions, greater stability, and, in some cases, lower toxicity. PAG-based fluids also have better cost/performance ratios when compared to other, nonsynthetic fluids. UCON Fluids and Lubricants are valued for their formulating versatility. Their distinct physical and performance properties include a wide range of viscosities, low pour points, high lubricity, cleanliness, stability, high flash points, miscibility, solvency, gas solubility, non-corrosive nature, additive compatibility and are acceptable with elastomers and other equipment materials of construction. Base Fluids UCON Base Fluids are used by lubricant formulators to make a wide range of synthetic products. UCON Base Fluids include UCON LB Fluids, which are water insoluble alcohol-started materials. UCON 50-HB Fluids are water soluble butanol (also an alcohol)-initiated base fluids, while UCON 75-H Fluids and UCON 60-H Fluids are both water soluble diol-started fluids. Each class of products is available in several molecular weights and viscosities. UCON 60-H Fluids are the latest additions to the base fluids line. They have properties similar to butanol-initiated base fluids, but offer excellent low temperature (pour point) and high temperature performance, including exceptional thermo-oxidative stability. UCON 60-H Fluids also provide low friction coefficients and excellent performance under extreme pressure loads. UCON 60-H Base Fluids are 21 CFR compliant (MW>1500) for use in applications with the potential for food contact.

3 Formulated Products In addition to base fluids, UCON products include a variety of formulated products. These fluid and lubricant packages consist of base fluids in combination with friction modifiers, corrosion inhibitors and other additives carefully selected based on the performance requirements of specific end-use applications. Products include water-glycol hydraulic fluids; anhydrous hydraulic fluids; compressor fluids; coating fluids; metalworking fluids; machinery, gear and bearing lubricants; calendar lubricants; food grade lubricants; heat transfer fluids; process fluids, solder assist fluids, and quenchants. Depending on the product, formulators, authorized distributors, and others may use formulated products from the UCON product line as the basis for enhanced proprietary products sold under a variety of brand names, including the UCON brand. For example, the UCON brand of quenchants is sold by authorized Dow distributors to the primary metals and metal working industries to provide controlled cooling of heated metal. Advantaged Raw Materials Position The majority of PAG-based fluids and lubricants are products of a value chain that starts with the production of natural gas and other raw materials. UCON Fluids and Lubricants are products of a back-integrated global production process, which enables Dow to exert greater control over feedstock availability and cost. In recent years the company has strengthened its supply position in ethylene oxide and propylene oxide, two key ingredients of PAG-based fluids and lubricants. The company has also continued to invest in the network of plants and shipping terminals that produce and inventory UCON Fluids and Lubricants to help ensure that customer requirements are met globally.

4 Commitment to Performance A significant consequence of rising global raw material costs and intense competition in the world s industrial markets has been the introduction of low-cost alternative fluids and lubricants in many regions of the world or the reformulation of existing products to reduce producer costs. The technical staff supporting UCON Fluids and Lubricants works closely with formulators and endusers to evaluate the composition and performance of these products. Analysis has shown that product composition and performance can vary widely and, in many cases, any cost savings provided by the so-called bargain fluids and lubricants could be more than offset by damage to equipment, downtime, and fluid or lubricant replacement expense. In contrast, UCON Fluids and Lubricants are based on Dow chemistry and are produced using only high quality raw materials under highly controlled manufacturing processes. This helps to ensure that customers receive reliable performance and high, long-lasting value. Innovation Dow continues to invest in developing new fluid and lubricant products as well as advanced production capabilities that further ensure the supply of high quality products. Examples of recent and emerging product innovations include the UCON 60-H Base Fluids, expanded lines of waterglycol hydraulic fluids and food grade lubricants, and the new line of UCON ULTRAQUENCH quenchants for the metal treating industry. In addition, multi-million dollar investments are being made to modernize and expand Dow production facilities in Tarragona, Spain; Freeport, Texas; and South Charleston, West Virginia to further promote global availability of UCON Fluids and Lubricants.

5 About Dow Dow is a diversified chemical company that harnesses the power of innovation, science and technology to constantly improve what is essential to human progress. The Company offers a broad range of products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $49 billion and employs 43,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless expressly noted. More information about Dow can be found at # # # #.