XIAMETER E-BUSINESS MODEL OFFERS LOWEST-BASE PRICE SILICONE PRODUCTS TO HOUSEHOLD PRODUCTS MARKETS

(MIDLAND, Mich. – March 5, 2002) Dow Corning Corporation announced today the launch of a new web-enabled business model using a new brand XIAMETERTM. Xiameter offers dynamic, lowest-base cost pricing; reliable, guaranteed shipping dates; clear order requirements and payment terms; and real time order and inventory control and confirmation for purchasers of standard sets of silicon-based fluids, resins, and other commonly used silicone products for manufacturers of household and housekeeping products.

Xiameter, the new measure of value from Dow Corning, was created for the customer who is experienced in purchasing and using silicone products in applications where additional sales, design, and support services are neither needed nor wanted. Through web-based registration and transactions, as well as straightforward business rules (see Backgrounder for more details), the Xiameter business model from Dow Corning eliminates unnecessary transaction costs to offer commonly used silicone products at the lowest price available.

The full XIAMETERTM offering includes more than 300 silicon-based fluids, resins, and adhesive/sealants. For household care applications, XIAMETERTM Series Fluids and Cyclics grades will be available, along with antifoams, surfactants, and emulsions for use in cleaners, waxes, detergents, water repellents, anti-static sprays, and more. Other common household applications for these products include carriers for aerosols and laundry products, emollients for moisturizing dish soaps, anti-static products for dusting sprays and cloths, upholstery treatments, and slip agents for fabric sizing and starches.

For registered customers, the Xiameter website, www.Xiameter.com, provides information on pricing, base quantities, safety data sheets (SDS), certificates of chemical equivalencies, and a unique cross-reference tool that recommends XIAMETERTM product equivalents for substitution (after testing by the customer).

Drawing on Dow Corning’s vast global capacity for silicone production – the most extensive of any silicones supplier worldwide – XIAMETERTM product shipping dates are guaranteed, ensuring reliable supply of high-quality products on predictable timelines. Minimum order quantities are truckloads, tank-carloads, or pallets, depending on the product line purchased. Payment, with terms of 30 days net, can be made by previously qualified customers through a variety of means in a number of currencies: U.S. dollars, euros, yen, won, pound sterling, and RMB. Letters of Credit must be made in euros or U.S. dollars. Local taxes are not included in the price list.

“Dow Corning will offer customers new choices for how they buy silicon-based materials. For customers who are truly interested in the lowest competitive prices for silicone, and need no more than the volume raw materials, we offer XIAMETERTM. If customers want value-added services such as product application and technical support, or development innovation with the purchase and use of our materials, they can still choose to buy the DOW CORNING® brand,” noted Dow Corning Executive Vice President, Stephanie Burns.

"Xiameter offers household care product manufacturers the silicone products they need at the lowest-base price," said Don Sheets, Xiameter general manager at Dow Corning. "The wide range of uses for silicones in household care products is well serviced by the broad ingredients offerings within Xiameter. Manufacturers especially benefit from our supply line infrastructure – we are able to ship on time and in the quantities required, around the clock and around the world."

As of March 5, 2002, XIAMETERTM products are available to be sold in more than 50 countries, including North America, most of Western Europe, China, Japan, Taiwan, Hong Kong, Australia, South Africa, and Brazil, among others. A list of XIAMETERTM products and prices, as well as registration information and Xiameter business rules are available on www.Xiameter.com.

Dow Corning, which develops, manufactures, and markets diverse silicon-bas

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